STAND. COM. REP. NO. 424-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2583

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Economic Development & Technology, to which was referred H.B. No. 2583 entitled:

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

begs leave to report as follows:

The purpose of this measure is to:

(1) Establish the Hawaii Micro-Lending Credit Enhancement Program and Micro-Lending Credit Enhancement Special Fund; and

(2) Appropriate funds into and out of the Special Fund for the program.

Your Committee received testimony in support of this measure from the Hawaiʻi Island Chamber of Commerce; Maui Chamber of Commerce; Chamber of Commerce Hawaii; and one individual. Your Committee received comments on this measure from the Department of Business, Economic Development, and Tourism.

Your Committee finds that small businesses in Hawaii face significant challenges accessing affordable micro‑loans due to limited local lending capacity and risk tolerance. These barriers restrict business formation and expansion, particularly for startups, sole proprietors, and very small employers. This measure strengthens the State's small business financing ecosystem by establishing a credit enhancement program that supports local lenders and expands access to capital.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 3000, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Economic Development & Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2583, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2583, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Technology,

____________________________

GREGGOR ILAGAN, Chair