STAND. COM. REP. NO. 3737

Honolulu, Hawaii

RE: H.B. No. 2583

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Ways and Means and Commerce and Consumer Protection, to which was referred H.B. No. 2583, H.D. 1, S.D. 1, entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to facilitate the availability of smaller-dollar loans for small businesses.

More specifically, the measure:

(1) Establishes within the Department of Business, Economic Development, and Tourism the Hawaii Micro-Lending Credit Enhancement Program; and

(2) Establishes and appropriates moneys into and out of the Hawaii micro-lending credit enhancement special fund.

Your Committees received written comments in support of this measure from Chamber of Commerce Hawaii, Retail Merchants of Hawaii, Hawaii Island Chamber of Commerce, Hawaii Farm Bureau, and one individual.

Your Committees received written comments on this measure from the Business Development and Support Division of the Department of Business, Economic Development, and Tourism.

Your Committees find that there are limited local options for smaller-dollar loans for small businesses operating in the State. Your Committees recognize that this situation may cause local small businesses to rely on higher-cost or riskier credit products; accept less favorable loan terms; or delay business formation, expansion, and hiring altogether. Your Committees believe that a well-managed micro-lending credit enhancement program, as proposed by this measure, will help strengthen the State's small business financing ecosystem, reduce reliance on higher-risk borrowing options, and improve access to affordable, appropriately-sized capital for the State's entrepreneurs.

As affirmed by the records of votes of the members of your Committees on Ways and Means and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2583, H.D. 1, S.D. 1, and recommend that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committees on Ways and Means and Commerce and Consumer Protection,

________________________________ JARRETT KEOHOKALOLE, Chair

________________________________ DONOVAN M. DELA CRUZ, Chair