CONFERENCE COMMITTEE REP. NO. 188-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2583

H.D. 1

S.D. 1

C.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madam and Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 2583, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) Establish the Hawaii Micro-Lending Credit Enhancement Program within the Department of Business, Economic Development, and Tourism to expand micro-lending capacity by providing state‑funded loan loss reserves or other credit enhancement that absorbs first losses on qualified micro-loans made by participating lenders to Hawaii small businesses;

(2) Allow borrower fees and state matching contributions to capitalize lender-held loan loss reserve accounts;

(3) Establish the Hawaii Micro-Lending Credit Enhancement Special Fund;

(4) Require the Department of Business, Economic Development, and Tourism to submit annual reports to the Legislature regarding the program; and

(5) Appropriate funds into and out of the Hawaii Micro-Lending Credit Enhancement Special Fund.

Your Committee on Conference has amended this measure by:

(1) Amending the definition of "micro-loan" to have the same meaning as "microloan" under the federal Microloan Program;

(2) Removing legislative appropriations from the authorized funding mechanisms of the Hawaii Micro-Lending Enhancement Special Fund;

(3) Removing the appropriation into the Hawaii Micro-Lending Credit Enhancement Special Fund;

(4) Inserting an appropriation amount of $1,500,000 out of the Hawaii Micro-Lending Credit Enhancement Special Fund;

(5) Changing the effective date to July 1, 2026; and

(6) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 2583, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 2583, H.D. 1, S.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ LYNN DECOITE Chair	____________________________ GREGGOR ILAGAN Co-Chair
____________________________ GLENN WAKAI Co-Chair	____________________________ IKAIKA HUSSEY Co-Chair
____________________________ RACHELE LAMOSAO Co-Chair