HB 455: DBEDT; Start-Up Business; Financing; Support; Contracted Services; Appropriations
- Session Year: 2025-2026
- House: House
- Latest Version Date: 2025-04-04
Current Status:
Failed
(2026-04-02: Received notice of the discharge of all House Conferees (Hse. Com. No. 457).)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
Appropriates moneys to the Department of Business, Economic Development, and Tourism for the contracting of services for start-up business financing and support. Effective 7/1/3000. (SD2)
Establishes the Hawaii Start-Up Business Loan Program. Establishes the Hawaii Start-Up Business Loan Program Special Fund. Requires Department of Business, Economic Development, and Tourism to submit an annual report to the Legislature regarding the program. Establishes positions. Appropriates funds. Effective 7/1/3000. (SD1)
Establishes the Hawaii start-up business loan program. Establishes the Hawaii start-up business loan program special fund. Requires DBEDT to submit an annual report to the Legislature regarding the program. Appropriates funds. Effective 7/1/3000. (HD1)
Establishes the Hawaii start-up business loan program. Establishes the Hawaii start-up business loan program special fund. Requires DBEDT to submit an annual report to the Legislature regarding the program. Appropriates funds.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
455 |
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THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 1 |
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STATE OF HAWAII |
S.D. 2 |
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A BILL FOR AN ACT
RELATING TO SMALL BUSINESS LOANS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the COVID-19 pandemic, supply chain issues, and inflation have hurt the State's economy and local businesses on every level, including the start-up industry. Despite this, many small businesses and entrepreneurs are ready to take the leap into starting up a business but lack the resources to do so, as access to capital is one of the biggest barriers for start-ups.
The legislature further finds that new businesses and young companies under five years of age create the most new jobs, on net, in the United States. While the State offers a variety of financial assistance to start-up businesses in Hawaii, most assistance is to help existing businesses expand and scale up, rather than to help successfully launch new businesses.
The legislature believes that providing support to local small businesses and entrepreneurs looking to begin a start-up could lead to the creation of more jobs in the State.
Accordingly, the purpose of this Act is to appropriate moneys to the department of business, economic development, and tourism for the contracting of services for start-up business financing and support, thereby encouraging entrepreneurship, economic diversification, and resilience.
SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the contracting of services for start-up business financing and support; provided that businesses eligible for the community-based economic development loan program under chapter 210D, Hawaii Revised Statutes, shall not be eligible for this program or loans offered pursuant to this Act.
The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 3. This Act shall take effect on July 1, 3000.
Report Title:
DBEDT; Start-Up Business; Financing; Support; Contracted Services; Appropriations
Description:
Appropriates moneys to the Department of Business, Economic Development, and Tourism for the contracting of services for start-up business financing and support. Effective 7/1/3000. (SD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
455 |
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THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 1 |
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STATE OF HAWAII |
S.D. 1 |
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A BILL FOR AN ACT
RELATING TO SMALL BUSINESS LOANS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the COVID-19 pandemic, supply chain issues, and inflation have hurt the State's economy and local businesses on every level, including the start-up industry. Despite this, many small businesses and entrepreneurs are ready to take the leap into starting up a business but lack the resources to do so, as access to capital is one of the biggest barriers for start-ups.
The legislature further finds that new businesses and young companies under five years of age create the most new jobs, on net, in the United States. While the State offers a variety of financial assistance to start-up businesses in Hawaii, most assistance is to help existing businesses expand and scale up, rather than to help successfully launch new businesses.
The legislature believes that providing support to local small businesses and entrepreneurs looking to begin a start-up could lead to the creation of more jobs in the State.
The purpose of this Act is to benefit the local economy and create new jobs by establishing and appropriating funds for a Hawaii start-up business loan program to encourage entrepreneurship, economic diversification, and resilience.
SECTION 2. Chapter 210D, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"Part . hawaii start-up business loan program
§210D- Definitions. As used in this part:
"Department" means the department of business, economic development, and tourism.
"Division" means the business development and support division of the department.
"Financial institution" means any organization authorized to do business under state or federal laws relating to financial institutions, including but not limited to banks, savings banks, savings and loan companies or associations, financial services loan companies, community development financial institutions, and credit unions.
"Program" means the Hawaii start-up business loan program.
"Start-up business" means a business that:
(1) Is registered in the State;
(2) Has been in business for three years or less; and
(3) Fulfills the qualifications established by the division to receive a start-up business loan under the program.
§210D- Hawaii start-up business loan program. There is established a Hawaii start-up business loan program that shall be administered by the division in coordination with the Hawaii technology development corporation.
210D- Functions, powers, and duties of the division; rules. (a) In the performance of, and with respect to, the functions, powers, and duties vested in the division by this part, the division may:
(1) Adopt rules to carry out this part; and
(2) Perform all functions necessary to effectuate the purposes of this part.
(b) The rules shall:
(1) Prescribe the qualifications for eligibility of applicants for loans;
(2) Establish preferences and priorities in determining eligibility for loans;
(3) Establish the conditions, consistent with the purposes of this part, for the issuance or continuance of loans; and
(4) Provide for inspection at reasonable hours of the place of business and records of a business that has applied for or has been issued a loan, and require the submission of progress and final reports.
§210D- Direct loans; terms and restrictions. (a) The division may make loans to address start-up business concerns, including the financing of working capital, construction or improvement of facilities, and equipment. The loans pursuant to this section shall not be made in conjunction with any other loans made or grants awarded by the division. Where the loans made by the division are secured, the security may be subordinated to the loans made by other financial institutions; provided that the subordination is required to obtain loans from those institutions. The necessity for and extent of security required in any loan shall be determined by the division.
(1) No loan shall be granted unless financial assistance is not available to the applicant; provided that the condition may be waived by the division for participation loans or loan guarantees with a private financial institution;
(2) The amount of the loan shall not exceed a total of $50,000;
(3) No loan shall be made for a term exceeding ten years, to begin on the date the loan is awarded and funding is disbursed to the applicant;
(4) No interest shall be charged for the first five years of the ten-year loan period, or the period before the middle of a loan period of less than ten years, from the date of the issuance of the loan; provided that the interest for the remainder of the loan period shall be at market rates;
(5) Upon reaching five years of the ten-year loan period, or the middle of a loan period of less than ten years, negotiations shall commence regarding a payment plan for the remaining loan by the end of the agreed-upon loan period; provided that the agreement shall be finalized within ninety days of the commencement of the negotiations; provided further that a report shall be submitted to the department on the status of the business, use of the loan, and how the loan has contributed to the business' growth;
(6) Any remaining loan balance made to a small business that filed and was approved for bankruptcy protection within ten years of receipt of the loan shall be forgiven; and
(7) No recipient of a loan shall be required to make a personal guarantee as a condition of receiving a loan.
(c) The division may contract with any financial institution for services, including servicing or administering loans pursuant to this section.
§201D- Hawaii start-up business loan program special fund. (a) There is established in the state treasury the Hawaii start‑up business loan program special fund, into which shall be deposited:
(1) Appropriations made by the legislature to the fund;
(2) Moneys received as repayments of loans; and
(3) Moneys received as payments of loan interest or fees.
(b) Moneys in the Hawaii start-up business loan program special fund shall be administered by the department and shall be used for providing loans to start-up businesses.
(c) All unexpected and unencumbered moneys remaining in the Hawaii start-up business loan program special fund at the close of each fiscal year shall not lapse to the credit of the general fund.
(d) The department may contract with any financial institution for services, including the day-to-day management of the fund pursuant to this section.
§210D- Reports. The department shall submit a report to the legislature on the division's activities in administering the program no later than twenty days prior to the convening of each regular session beginning with the regular session of 2026. The report shall include:
(1) A description and uses of loans from the loan program;
(2) A summary of information and analytical data concerning the implementation of the loan program; and
(3) Loan repayments made."
SECTION 3. Chapter 210D, Hawaii Revised Statutes, is amended by designating sections 210D-1 to 210D-14 as part I and inserting a title before section 210D-1 to read as follows:
"PART I. COMMUNITY-BASED ECONOMIC DEVELOPMENT PROGRAM"
SECTION 4. Sections 210D-1, 210D-2, 210D-4, 210D-7, 210D-8, 210D-9, 210D-10, 210D-11, 210D-13, and 210D-14, Hawaii Revised Statutes, are amended by substituting the words "this part" wherever the words "this chapter" appears, as the context requires.
SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to be deposited into the Hawaii start‑up business loan program special fund established pursuant to section 2 of this Act.
SECTION 6. There is appropriated out of the Hawaii start‑up business loan program special fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the purposes of implementing the Hawaii start‑up business loan program and providing loans under the program.
The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 7. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to fund full-time equivalent ( FTE) business loan officer position to administer loans under the Hawaii start-up business loan program.
The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 8. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.
SECTION 9. New statutory material is underscored.
SECTION 10. This Act shall take effect on July 1, 3000.
Report Title:
DBEDT; Business Development and Support Division; HTDC; Hawaii Start-Up Business Loan Program; Hawaii Start-up Business Loan Program Special Fund; Reports; Positions; Appropriations
Description:
Establishes the Hawaii Start-Up Business Loan Program. Establishes the Hawaii Start-Up Business Loan Program Special Fund. Requires Department of Business, Economic Development, and Tourism to submit an annual report to the Legislature regarding the program. Establishes positions. Appropriates funds. Effective 7/1/3000. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
455 |
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THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 1 |
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STATE OF HAWAII |
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|
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|
||
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|
||
A BILL FOR AN ACT
RELATING TO SMALL BUSINESS LOANS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the COVID-19 pandemic, supply chain issues, and inflation have hurt the State's economy and local businesses on every level, including the start-up industry. Despite this, many small businesses and entrepreneurs are ready to take the leap into starting up a business but lack the resources to do so, as access to capital is one of the biggest barriers for start-ups.
The legislature further finds that new businesses and young companies under five years of age create the most new jobs, on net, in the United States. While the State offers a variety of financial assistance to start-up businesses in Hawaii, most assistance is to help existing businesses expand and scale up, rather than to help successfully launch new businesses.
The legislature believes that providing support to local small businesses and entrepreneurs looking to begin a start-up could lead to the creation of more jobs in the State.
The purpose of this Act is to benefit the local economy and create new jobs by establishing and appropriating funds for a Hawaii start-up business loan program to encourage entrepreneurship, economic diversification, and resilience.
SECTION 2. Chapter 210D, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"Part . hawaii start-up business loan program
§210D- Definitions. As used in this part:
"Department" means the department of business, economic development, and tourism.
"Division" means the business development and support division of the department.
"Financial institution" means any organization authorized to do business under state or federal laws relating to financial institutions, including but not limited to banks, savings banks, savings and loan companies or associations, financial services loan companies, community development financial institutions, and credit unions.
"Program" means the Hawaii start-up business loan program.
"Start-up business" means a business that:
(1) Is registered in the State;
(2) Has been in business for three years or less; and
(3) Fulfills the qualifications established by the division to receive a start-up business loan under the program.
§210D- Hawaii start-up business loan program. There is established a Hawaii start-up business loan program that shall be administered by the division in coordination with the Hawaii technology development corporation.
210D- Functions, powers, and duties of the division; rules. (a) In the performance of and with respect to the functions, powers, and duties vested in the division by this part, the division may:
(1) Adopt rules to carry out this part; and
(2) Perform all functions necessary to effectuate the purposes of this part.
(b) The rules shall:
(1) Prescribe the qualifications for eligibility of applicants for loans;
(2) Establish preferences and priorities in determining eligibility for loans;
(3) Establish the conditions, consistent with the purposes of this part, for the issuance or continuance of loans; and
(4) Provide for inspection at reasonable hours of the place of business and records of a business that has applied for or has been issued a loan, and require the submission of progress and final reports.
§210D- Direct loans; terms and restrictions. (a) The division may make loans to address start-up business concerns, including the financing of working capital, construction or improvement of facilities, and equipment. The loans pursuant to this section shall not be made in conjunction with any other loans made or grants awarded by the division. Where the loans made by the division are secured, the security may be subordinated to the loans made by other financial institutions; provided that the subordination is required to obtain loans from those institutions. The necessity for and extent of security required in any loan shall be determined by the division.
(1) No loan shall be granted unless financial assistance is not available to the applicant; provided that the condition may be waived by the division for participation loans or loan guarantees with a private financial institution;
(2) The amount of the loan shall not exceed a total of $50,000;
(3) No loan shall be made for a term exceeding ten years, to begin on the date the loan is awarded and funding is disbursed to the applicant;
(4) No interest shall be charged for the first five years of the ten-year loan period, or the period prior to the middle of a loan period of less than ten years, from the date of the issuance of the loan; provided that the remainder of the loan period shall be at market interest rates;
(5) Upon reaching five years of the ten-year loan period, or the middle of a loan period of less than ten years, negotiations shall commence regarding a payment plan for the remaining loan by the end of the agreed-upon loan period; provided that the agreement shall be finalized within ninety days of the commencement of the negotiations; provided further that a report shall be submitted to the department on the status of the business, use of the loan, and how the loan has contributed to the business' growth;
(6) Any remaining loan balance made to a small business that filed and was approved for bankruptcy protection within ten years of receipt of the loan shall be forgiven; and
(7) No recipient of a loan shall be required to make a personal guarantee as a condition of receiving a loan.
(c) The division may contract with any financial institution for services, including servicing or administering loans pursuant to this section.
§201D- Hawaii start-up business loan program special fund. (a) There is established in the state treasury the Hawaii start‑up business loan program special fund, into which shall be deposited:
(1) Appropriations made by the legislature to the fund;
(2) Moneys received as repayments of loans; and
(3) Payments of loan interest or fees.
(b) Moneys in the Hawaii start-up business loan program special fund shall be administered by the department and shall be used for providing loans to start-up businesses.
(c) All unexpected and unencumbered moneys remaining in the Hawaii start-up business loan program special fund at the close of each fiscal year shall not lapse to the credit of the general fund.
(d) The department may contract with any financial institution for services, including the day-to-day management of the fund pursuant to this section.
§210D- Reports. The department shall submit a report to the legislature on the division's activities in administering the program no later than twenty days prior to the convening of each regular session beginning with the regular session of 2026. The report shall include:
(1) A description and uses of loans from the loan program;
(2) A summary of information and analytical data concerning the implementation of the loan program; and
(3) Loan repayments made."
SECTION 3. Chapter 210D, Hawaii Revised Statutes, is amended by designating sections 210D-1 to 210D-14 as part I and inserting a title before section 210D-1 to read as follows:
"PART I. COMMUNITY-BASED ECONOMIC DEVELOPMENT PROGRAM".
SECTION 4. Sections 210D-1, 210D-2, 210D-4, 210D-7, 210D-8, 210D-9, 210D-10, 210D-11, 210D-13, and 210D-14, Hawaii Revised Statutes, are amended by substituting the words "this part" wherever the words "this chapter" appears, as the context requires.
SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to be deposited into the Hawaii start‑up business loan program special fund established pursuant to section 2 of this Act.
SECTION 6. There is appropriated out of the Hawaii start‑up business loan program special fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the purposes of implementing the Hawaii start‑up business loan program and providing loans under the program.
The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 7. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to fund full-time equivalent ( FTE) business loan officer position to administer loans under the Hawaii start-up business loan program.
The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 8. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.
SECTION 9. This Act shall take effect on July 1, 3000.
Report Title:
Hawaii Start-Up Business Loan Program; Hawaii Start-up Business Loan Program Special Fund; DBEDT; Business Development and Support Division; HTDC; Report; Appropriation; Positions
Description:
Establishes the Hawaii start-up business loan program. Establishes the Hawaii start-up business loan program special fund. Requires DBEDT to submit an annual report to the Legislature regarding the program. Appropriates funds. Effective 7/1/3000. (HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
455 |
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THIRTY-THIRD LEGISLATURE, 2025 |
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|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
relating to small business loans.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the COVID-19 pandemic, supply chain issues, and inflation have hurt the State's economy and local businesses on every level, including the start-up industry. Despite this, many small businesses and entrepreneurs are ready to take the leap into starting up a business but lack the resources to do so, as access to capital is one of the biggest barriers for start-ups.
The legislature further finds that new businesses and young companies under five years of age create the most new jobs, on net, in the United States. While the State offers a variety of financial assistance to start-up businesses in Hawaii, most assistance is to help existing businesses expand and scale up, rather than to help successfully launch new businesses.
The legislature believes that providing support to local small businesses and entrepreneurs looking to begin a start-up could lead to the creation of more jobs in the State.
The purpose of this Act is to benefit the local economy and create new jobs by establishing and appropriating funds for a Hawaii start-up business loan program to encourage entrepreneurship and economic diversification and resilience.
SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to title 13 to be appropriately designated and to read as follows:
"Chapter
hawaii start-up business loan program
§ -1 Definitions. As used in this chapter:
"Department" means the department of business, economic development, and tourism.
"Division" means the business development and support division of the department.
"Financial institution" means any organization authorized to do business under state or federal laws relating to financial institutions, including, without limitation, banks, savings banks, savings and loan companies or associations, financial services loan companies, community development financial institutions, and credit unions.
"Program" means the Hawaii start-up business loan program.
"Start-up business" means a business that:
(1) Is registered in the State;
(2) Has been in business for three years or less; and
(3) Fulfills the qualifications established by the division to receive a start-up business loan under the program.
§ -2 Hawaii start-up business loan program. There is established a Hawaii start-up business loan program that shall be administered by the division in coordination with the Hawaii technology development corporation.
§ -3 Functions, powers, and duties of the division; rules. (a) In the performance of and with respect to the functions, powers, and duties vested in the division by this chapter, the division may:
(1) Adopt rules to carry out this chapter; and
(2) Perform all functions necessary to effectuate the purposes of this chapter.
(b) The rules shall:
(1) Prescribe the qualifications for eligibility of applicants for loans;
(2) Establish preferences and priorities in determining eligibility for loans;
(3) Establish the conditions, consistent with the purposes of this chapter, for the issuance or continuance of loans; and
(4) Provide for inspection at reasonable hours of the plant, books, and records of an enterprise that has applied for or has been issued a loan, and require the submission of progress and final reports.
§ -4 Direct loans; terms and restrictions. (a) The division may make loans to address start-up business concerns, including the financing of working capital, construction or improvement of facilities, and equipment. The loans pursuant to this section shall not be made in conjunction with any other loans made or grants awarded by the division. Where the loans made by the division are secured, the security may be subordinated to the loans made by other financial institutions; provided that the subordination is required to obtain loans from those institutions. The necessity for and extent of security required in any loan shall be determined by the division.
(1) No loan shall be granted unless financial assistance is not available to the applicant; provided that the condition may be waived by the division for participation loans or loan guarantees with a private financial institution;
(2) The amount of the loan shall not exceed a total of $50,000;
(3) No loan shall be made for a term exceeding ten years, to begin on the date the loan is awarded and funding is disbursed to the applicant;
(4) No interest shall be charged for the first five years of the ten-year loan period, or the period prior to the middle of a loan period of less than ten years, from the date of the issuance of the loan; provided that the remainder of the loan period shall be at market interest rates;
(5) Upon reaching five years of the ten-year loan period, or the middle of a loan period of less than ten years, negotiations shall commence regarding a payment plan for the remaining loan by the end of the agreed-upon loan period; provided that the agreement shall be finalized within ninety days of the commencement of the negotiations; provided further that a report shall be submitted to the department on the status of the business, use of the loan, and how the loan has contributed to the business' growth;
(6) Any remaining loan balance made to a small business that filed and was approved for bankruptcy protection within ten years of receipt of the loan shall be forgiven; and
(7) No recipient of a loan shall be required to make a personal guarantee as a condition of receiving a loan.
(c) The division may contract with any financial institution for services, including servicing or administering loans pursuant to this section.
§ -5 Hawaii start-up business loan program special fund. (a) There is established in the state treasury the Hawaii start‑up business loan program special fund, into which shall be deposited:
(1) Appropriations made by the legislature to the fund;
(2) Moneys received as repayments of loans; and
(3) Payments of loan interest or fees.
(b) Moneys in the Hawaii start-up business loan program special fund shall be administered by the department and shall be used for providing loans to start-up businesses.
(c) All unexpected and unencumbered moneys remaining in the Hawaii start-up business loan program special fund at the close of each fiscal year shall not lapse to the credit of the general fund.
(d) The department may contract with any financial institution for services, including the day-to-day management of the fund pursuant to this section.
§ -6 Reports. The department shall submit a report to the legislature on the division's activities in administering the program no later than twenty days prior to the convening of each regular session beginning with the regular session of 2026. The report shall include:
(1) A description and uses of loans from the loan program;
(2) A summary of information and analytical data concerning the implementation of the loan program; and
(3) Loan repayments made."
SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $500,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to be deposited into the Hawaii start‑up business loan program special fund established pursuant to section 2 of this Act.
SECTION 4. There is appropriated out of the Hawaii start‑up business loan program special fund the sum of $500,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the purposes of implementing the Hawaii start‑up business loan program and providing loans under the program.
The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 5. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.
SECTION 6. This Act shall take effect on July 1, 2025.
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INTRODUCED BY: |
_____________________________ |
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Report Title:
Hawaii Start-Up Business Loan Program; Hawaii Start-up Business Loan Program Special Fund; DBEDT; Business Development and Support Division; HTDC; Report; Appropriation
Description:
Establishes the Hawaii start-up business loan program. Establishes the Hawaii start-up business loan program special fund. Requires DBEDT to submit an annual report to the Legislature regarding the program. Appropriates funds.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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Date
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Status
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|---|---|
| Apr 2, 2026 | Received notice of the discharge of all House Conferees (Hse. Com. No. 457). |
| Apr 1, 2026 | House Conferee(s) discharged. |
| Dec 8, 2025 | Carried over to 2026 Regular Session. |
| Apr 21, 2025 | Received notice of appointment of House conferees (Hse. Com. No. 755). |
| Apr 17, 2025 | House Conferees Appointed: Ilagan, Hussey Co-Chairs; Matsumoto. |
| Apr 11, 2025 | Received notice of disagreement (Hse. Com. No. 704). |
| Apr 10, 2025 | House disagrees with Senate amendment (s). |
| Apr 8, 2025 | Returned from Senate (Sen. Com. No. 641) in amended form (SD 2). |
| Apr 8, 2025 | Report adopted; Passed Third Reading, as amended (SD 2). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House. |
| Apr 4, 2025 | 48 Hrs. Notice 04-08-25. |
| Apr 4, 2025 | Reported from WAM (Stand. Com. Rep. No. 1806) with recommendation of passage on Third Reading, as amended (SD 2). |
| Apr 3, 2025 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Apr 1, 2025 | The committee(s) on WAM will hold a public decision making on 04-03-25 10:01AM; Conference Room 211 & Videoconference. |
| Mar 17, 2025 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. |
| Mar 17, 2025 | Reported from EDT (Stand. Com. Rep. No. 1092) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM. |
| Mar 11, 2025 | The committee(s) on EDT recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in EDT were as follows: 5 Aye(s): Senator(s) DeCoite, Wakai, Fukunaga, Kim, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Mar 6, 2025 | The committee(s) on EDT has scheduled a public hearing on 03-11-25 1:00PM; Conference Room 229 & Videoconference. |
| Mar 4, 2025 | Referred to EDT, WAM. |
| Mar 4, 2025 | Passed First Reading. |
| Mar 4, 2025 | Received from House (Hse. Com. No. 106). |
| Feb 28, 2025 | Passed Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Pierick, Templo, Ward excused (4). Transmitted to Senate. |
| Feb 28, 2025 | Reported from FIN (Stand. Com. Rep. No. 985), recommending passage on Third Reading. |
| Feb 24, 2025 | The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 15 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Alcos, Reyes Oda; Ayes with reservations: none; 0 Noes: none; and 1 Excused: Representative(s) Ward. |
| Feb 21, 2025 | Bill scheduled to be heard by FIN on Monday, 02-24-25 10:00AM in House conference room 308 VIA VIDEOCONFERENCE. |
| Feb 10, 2025 | Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Belatti, Cochran, Kila, Ward excused (4). |
| Feb 10, 2025 | Reported from ECD (Stand. Com. Rep. No. 300) as amended in HD 1, recommending passage on Second Reading and referral to FIN. |
| Feb 5, 2025 | The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Ilagan, Hussey, Holt, Tam, Templo, Todd, Matsumoto; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none. |
| Jan 29, 2025 | Bill scheduled to be heard by ECD on Wednesday, 02-05-25 10:00AM in House conference room 423 VIA VIDEOCONFERENCE. |
| Jan 21, 2025 | Referred to ECD, FIN, referral sheet 2 |
| Jan 21, 2025 | Introduced and Pass First Reading. |
| Jan 17, 2025 | Pending introduction. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Apr 8, 2025 | Third Reading | Senate Floor |
Passed |
|
| Apr 3, 2025 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Ways and Means |
Passed |
|
| Mar 11, 2025 | The committee(s) on EDT recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Economic Development and Tourism |
Passed |
|
| Feb 28, 2025 | Third Reading | House Floor |
Passed |
|
| Feb 24, 2025 | The committee on FIN recommend that the measure be PASSED, UNAMENDED | House Standing Committee on Finance |
Passed |
|
| Feb 5, 2025 | The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Economic Development & Technology |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| aio Family of Companies | *** Support | Apr 3, 2025 |
| Chamber of Commerce Hawaii | ** Support | |
| Department of Business, Economic Development, and Tourism (DBEDT) | *** Support | Apr 3, 2025 |
| Hawaii Food Industry Association | *** Support | Apr 3, 2025 |
| Hawaiʻi Community Foundation | ** Support | |
| Hawaiʻi Community Foundation | *** Support | Apr 3, 2025 |
| Holomua Collaborative | *** Support | Apr 3, 2025 |
| HPM BUILDING SUPPLY | *** Support | Apr 3, 2025 |
| Mana Up | *** Support | Apr 3, 2025 |
| Maui Chamber of Commerce | *** Support | Apr 3, 2025 |
| Tax Foundation of Hawaii | *** Against | Feb 5, 2025 |
| Title Guaranty of Hawai‘i | *** Support | Apr 3, 2025 |
STAND. COM. REP. NO. 1806
Honolulu, Hawaii
RE: H.B. No. 455
H.D. 1
S.D. 2
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred H.B. No. 455, H.D. 1, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO SMALL BUSINESS LOANS,"
begs leave to report as follows:
The purpose and intent of this measure is to establish and appropriate moneys for a Hawaii start-up business loan program.
Your Committee received written comments in support of this measure from the Department of Business, Economic Development, and Tourism; Hawaii Community Foundation; Mana-Up; Title Guaranty; AIO; HPM Bldg Supply; Holomua Collaborative; Hawaii Food Industry Association; and Maui Chamber of Commerce.
Your Committee received written comments on this measure from the Attorney General, Department of Budget and Finance, and Tax Foundation of Hawaii.
Your Committee finds that the State offers a variety of financial assistance opportunities to start-up businesses. However, most assistance is available to help existing businesses expand and scale up, rather than to help successfully launch new businesses. Your Committee further finds that authorizing the Department of Business, Economic Development, and Tourism to contract services for start-up business financing and support will help to cost-effectively encourage entrepreneurship, economic diversification, and resilience.
Your Committee has amended this measure by:
(1) Removing the language establishing the Hawaii start-up business loan program and Hawaii start-up business loan program special fund and related appropriations in sections 2, 3, 4, 5, 6, and 7 of the measure;
(2) Appropriating moneys to the Department of Business, Economic Development, and Tourism for the contracting of services for start-up business financing and support;
(3) Specifying that businesses eligible for certain other loans shall not be eligible for loans under this program; and
(4) Making conforming amendments to the preamble in section 1 of the measure.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 455, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 455, H.D. 1, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
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________________________________ DONOVAN M. DELA CRUZ, Chair |
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STAND. COM. REP. NO. 1092
Honolulu, Hawaii
RE: H.B. No. 455
H.D. 1
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Economic Development and Tourism, to which was referred H.B. No. 455, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO SMALL BUSINESS LOANS,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Establish the Hawaii StartUp Business Loan Program;
(2) Establish the Hawaii StartUp Business Loan Program Special Fund;
(3) Require the Department of Business, Economic Development, and Tourism to submit an annual report to the Legislature regarding the program; and
(4) Appropriate funds.
Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Holomua Collaborative; Chamber of Commerce Hawaii; Maui Chamber of Commerce; Hawaii Food Industry Association; Mana Up; Hawaiʻi Community Foundation; Title Guaranty of Hawaiʻi; HPM Building Supply; and aio Family of Companies.
Your Committee received comments on this measure from the Department of the Attorney General, Department of Budget and Finance, and Tax Foundation of Hawaii.
Your Committee finds that while small, local, and new businesses are critical to the State's economy, initial start-up costs are a potential impediment to the development of a business. Although the State offers a variety of financial assistance programs to start-up businesses in Hawaii, most assistance is to allow existing businesses to expand and scale up, rather than to fund new businesses. Your Committee recognizes the absence of resource assistance for initial business start-up costs and believes that providing a dedicated source of funding for local small start-up businesses will assist the State in diversifying its economy and building local wealth. By establishing the Hawaii Start-Up Business Loan Program and subsequent Special Fund, this measure will promote economic resilience throughout the State.
Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.
Your Committee notes the concerns raised in the testimony of the Department of the Attorney General and Department of Budget and Finance that the special fund proposed in this measure may not satisfy existing statutory requirements which mandate that the purpose, scope, and need of a special fund be demonstrated; an explanation as to why the special fund could not be successfully implemented under the general fund appropriation process be provided; and evidence for the special fund to be financially self-sustaining be verified.
As affirmed by the record of votes of the members of your Committee on Economic Development and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 455, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 455, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Economic Development and Tourism,
|
|
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________________________________ LYNN DECOITE, Chair |
|
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|
STAND. COM. REP. NO. 985
Honolulu, Hawaii
, 2025
RE: H.B. No. 455
H.D. 1
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madame:
Your Committee on Finance, to which was referred H.B. No. 455, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO SMALL BUSINESS LOANS,"
begs leave to report as follows:
The purpose of this measure is to:
(1) Establish the Hawaii Start-Up Business Loan Program to encourage entrepreneurship, economic diversification, and resilience; and
(2) Appropriate funds for the Hawaii Start-Up Business Loan Program and a Business Loan Officer position.
Your Committee received testimony in support of this measure from Holomua Collaborative; Mana Up; Hawaiʻi Community Foundation; aio; HPM Building Supply; Title Guaranty of Hawaiʻi; Chamber of Commerce Hawaii; Maui Chamber of Commerce; and Hawaii Food Industry Association. Your Committee received comments on this measure from the Department of Business, Economic Development, and Tourism; Department of Budget and Finance; Department of the Attorney General; and Tax Foundation of Hawaii.
Your Committee notes the concerns raised in testimony by the Department of the Attorney General regarding whether the establishment of the Hawaii Start-Up Business Loan Program Special Fund satisfies the criteria for the establishment and continuation of special funds under section 37-52.3, Hawaii Revised Statutes.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 455, H.D. 1, and recommends that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ KYLE T. YAMASHITA, Chair |
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STAND. COM. REP. NO. 300
Honolulu, Hawaii
, 2025
RE: H.B. No. 455
H.D. 1
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madame:
Your Committee on Economic Development & Technology, to which was referred H.B. No. 455 entitled:
"A BILL FOR AN ACT RELATING TO SMALL BUSINESS LOANS,"
begs leave to report as follows:
Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Hawaii Food Industry Association; Chamber of Commerce Hawaii; Holomua Collaborative; Mana Up; Hawaiʻi Community Foundation; Title Guaranty Hawaii; HPM Building Supply; aio; Maui Chamber of Commerce; and one individual. Your Committee received comments on this measure from the Department of Budget and Finance; and Tax Foundation of Hawaii.
Your Committee finds that new businesses that have existed for under five years create the most new jobs, on net, in the United States and help foster economic growth. This measure will benefit the local economy and help create new jobs by establishing a Hawaii Start-Up Business Loan Program to encourage entrepreneurship, economic diversification, and resilience.
Your Committee has amended this measure by:
(1) Incorporating the Hawaii Start-Up Business Loan Program into the Department of Business, Economic Development, and Tourism's existing Community-Based Economic Development Program;
(2) Changing the appropriations to unspecified amounts;
(3) Adding an appropriation for an unspecified amount for a business loan officer position;
(4) Changing the effective date to July 1, 3000, to encourage further discussion; and
(5) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.
Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to consider appropriation amounts of:
(1) $500,000 to be deposited into and appropriated out of the Hawaii Start-Up Business Loan Program Special Fund; and
(2) $95,000 to fund one full-time equivalent (1.0 FTE) business loan officer position.
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. 455, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 455, 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,
|
|
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____________________________ GREGGOR ILAGAN, Chair |
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Date
|
Testimony PDF
|
|---|---|
| Apr 3, 2025 | HB455_SD1_TESTIMONY_WAM_04-03-25_.PDF |
| Mar 11, 2025 | HB455_HD1_TESTIMONY_EDT_03-11-25_.PDF |
| Feb 24, 2025 | HB455_HD1_TESTIMONY_FIN_02-24-25_.PDF |
| Feb 5, 2025 | HB455_TESTIMONY_ECD_02-05-25_.PDF |
Discussed in Hearing
6MIN
Senate Standing Committee on Economic Development and Tourism
3MIN
House Standing Committee on Finance
2MIN
House Standing Committee on Economic Development & Technology
Bill Author
