HB 2583HawaiiProcess complete

Hawaii supports small-business micro-loans through lender reserves

Hawaii’s business department runs a voluntary loan-support program for eligible local small businesses, with $1.5 million set aside for fiscal year 2026–2027.

What it does

Hawaii’s business department administers a voluntary program to encourage approved lenders to offer small loans to eligible local businesses.

The department may back eligible small-business loans with reserve funds or other approved risk-sharing arrangements. If required, a borrower fee can be up to 1% of the loan amount, with a program contribution added to the same reserve.

The department must report program activity to lawmakers each year. The law also sets aside $1.5 million from the program’s special fund for fiscal year 2026–2027.

Argument forState-backed reserves could encourage lenders to offer small loans to Hawaii businesses that might not otherwise qualify on similar terms.

Argument againstA borrower could pay a fee of up to 1% of the loan if the department requires it, adding to the cost of borrowing.

More detail

The Department of Business, Economic Development, and Tourism administers a voluntary program that encourages approved lenders to offer micro-loans to eligible Hawaii businesses. A qualifying borrower must be a for-profit small business authorized to do business in Hawaii, with its primary operations in the State and within size standards set by department rule. Lender and borrower participation is voluntary. Lenders do not have to make loans or change prudent underwriting standards. The Act took effect July 1, 2026.

The department may support loans through reserve accounts, first-loss reserves, or other approved risk-sharing arrangements. The support applies to micro-loans for qualified borrowers through participating eligible lenders. The department may require a borrower fee of up to 1% of the loan principal and a matching program contribution to the same reserve account. Reserve money may cover only losses on qualified micro-loans under department guidelines. The Act took effect July 1, 2026.

The department must report program activity to the Legislature and may spend special-fund money on the program; $1.5 million is appropriated for fiscal year 2026–2027. The report covers loans and participating lenders, loan locations, reserve activity, and estimated private capital supported per state dollar. The appropriation is from the program’s special fund and is for the department’s use for the Act’s purposes. The report is due no later than 20 days before each regular legislative session.

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Where it stands

IntroducedJan 28
Passed HouseMar 5
Passed SenateApr 14
To Governor
Became LawJul 7

Looking ahead

No hearings or votes scheduled.

History

2026
1. Jul 7Act 183, 07/06/2026 (Gov. Msg. No. 1285).Latest
2. Jul 7Act 183, on 07/06/2026 (Gov. Msg. No. 1285).Became Law
3. May 8Received notice of passage on Final Reading in House (Hse. Com. No. 888).Minor
4. May 7Transmitted to Governor.
5. May 6Passed Final Reading as amended in CD 1 with none voting aye with reservations; none voting no (0) and none excused (0).Major
  - Vote recorded Passed Final Reading as amended in CD 1. Result: pass.Lower
6. May 6Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none.Major
7. May 6Received notice of Final Reading (Sen. Com. No. 816).Minor
8. May 1Conference Committee Meeting will reconvene on Friday, 05-01-26 at 11:30AM in Conference Room 411.
  - Vote recorded The Conference Committee recommends that the measure be Passed, with Amendments. Result: pass.Lower
  - Vote recorded The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. Result: pass.Upper
9. May 1Conference Committee Meeting will reconvene on Friday, 05-01-26 at 4:31PM in Conference Room 411.
10. May 1Conference committee meeting to reconvene on 05-01-26 5:37 PM; Conference Room 329.
11. May 1Conference committee meeting to reconvene on 05-01-26 5:40 PM; Conference Room 309.
12. May 1The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 3 Aye(s): Senator(s) DeCoite, Wakai, Lamosao; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella.Minor
13. May 1The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 4 Ayes: Representative(s) Ilagan, Hussey, Tam, Gedeon; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.Minor
14. May 1Reported from Conference Committee (Conf Com. Rep. No. 188-26) as amended in (CD 1).
15. May 1Forty-eight (48) hours notice Wednesday, 05-06-26.
16. May 1Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 188-26).
17. May 148 Hrs. Notice (as amended CD 1) 05-06-26
18. Apr 30Conference Committee Meeting will reconvene on Friday 05-01-26 8:01AM in conference room 411.
19. Apr 28Bill scheduled for Conference Committee Meeting on Thursday, 04-30-26 8:30AM in conference room 411.
20. Apr 23Received notice of Senate conferees (Sen. Com. No. 725).Minor
21. Apr 22Senate Conferees Appointed: DeCoite Chair; Wakai, Lamosao Co-Chairs; Fevella.
22. Apr 20House Conferees Appointed: Ilagan, Hussey Co-Chairs; Tam, Gedeon.
23. Apr 20Received notice of appointment of House conferees (Hse. Com. No. 786).Minor
24. Apr 17Received notice of disagreement (Hse. Com. No. 780).Minor
25. Apr 16House disagrees with Senate amendment (s).Minor
26. Apr 14Report adopted; Passed Third Reading. Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House.Passed Senate
  - Vote recorded Report adopted; Passed Third Reading. Result: pass.Upper
27. Apr 14Returned from Senate (Sen. Com. No. 706) in amended form (SD 1).
28. Apr 10Reported from WAM/CPN (Stand. Com. Rep. No. 3737) with recommendation of passage on Third Reading.
29. Apr 10One Day Notice 04-14-26.
30. Apr 7The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. The votes in WAM were as follows: 11 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Lee, C., Richards.Minor
  - Vote recorded The committee(s) on CPN recommend(s) that the measure be PASSED, UNAMENDED. Result: pass.Upper
  - Vote recorded The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. Result: pass.Upper
31. Apr 7The committee(s) on CPN recommend(s) that the measure be PASSED, UNAMENDED. The votes in CPN were as follows: 4 Aye(s): Senator(s) Keohokalole, Fukunaga, Lamosao, McKelvey; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Awa.Minor
32. Apr 2The committee(s) on WAM/CPN will hold a public decision making on 04-07-26 10:30AM; Conference Room 211 & Videoconference.
33. Mar 24Reported from EDT (Stand. Com. Rep. No. 3145) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM/CPN.
34. Mar 24Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM/CPN.Minor
35. Mar 17The committee(s) on EDT recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in EDT were as follows: 3 Aye(s): Senator(s) DeCoite, Wakai, Fukunaga; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Kim, Fevella.Minor
  - Vote recorded The committee(s) on EDT recommend(s) that the measure be PASSED, WITH AMENDMENTS. Result: pass.Upper
36. Mar 13The committee(s) on EDT has scheduled a public hearing on 03-17-26 1:00PM; Conference Room 229 & Videoconference.
37. Mar 10Referred to EDT, WAM/CPN.Minor
38. Mar 6Received from House (Hse. Com. No. 120).Minor
39. Mar 6Passed First Reading.Minor
40. Mar 5Reported from FIN (Stand. Com. Rep. No. 773-26), recommending passage on Third Reading.
  - Vote recorded Passed Third Reading. Result: pass.Lower
41. Mar 5Passed Third Reading with Representative(s) Iwamoto voting aye with reservations; none voting no (0) and Representative(s) Perruso excused (1). Transmitted to Senate.Passed House
42. Mar 2The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 16 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Perruso, Templo, Yamashita, Alcos, Gedeon, Reyes Oda; Ayes with reservations: none; Noes: none; and Excused: none.Minor
  - Vote recorded The committee on FIN recommend that the measure be PASSED, UNAMENDED. Result: pass.Lower
43. Feb 27Bill scheduled to be heard by FIN on Monday, 03-02-26 2:00PM in House conference room 308 VIA VIDEOCONFERENCE.
44. Feb 18Reported from ECD (Stand. Com. Rep. No. 424-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
  - Vote recorded Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN. Result: pass.Lower
45. Feb 18Passed 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 none excused (0).Minor
46. Feb 13The 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, Yamashita, Gedeon; Ayes with reservations: none; Noes: none; and Excused: none.Minor
  - Vote recorded The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. Result: pass.Lower
47. Feb 10Bill scheduled to be heard by ECD on Friday, 02-13-26 8:30AM in House conference room 423 VIA VIDEOCONFERENCE.
48. Feb 2Referred to ECD, FIN, referral sheet 6Minor
49. Jan 28Introduced and Pass First Reading.Introduced

Economy & JobsTaxes & Budget

Issue with this bill?

HB 2583HawaiiProcess complete

Hawaii supports small-business micro-loans through lender reserves

Hawaii’s business department runs a voluntary loan-support program for eligible local small businesses, with $1.5 million set aside for fiscal year 2026–2027.

What it does

Hawaii’s business department administers a voluntary program to encourage approved lenders to offer small loans to eligible local businesses.

The department must report program activity to lawmakers each year. The law also sets aside $1.5 million from the program’s special fund for fiscal year 2026–2027.

Argument forState-backed reserves could encourage lenders to offer small loans to Hawaii businesses that might not otherwise qualify on similar terms.

Argument againstA borrower could pay a fee of up to 1% of the loan if the department requires it, adding to the cost of borrowing.

More detail

Where do you stand?

Tell your reps

Take a position to see your representatives and ways to contact them.

More on this bill

Where it stands

IntroducedJan 28
Passed HouseMar 5
Passed SenateApr 14
To Governor
Became LawJul 7

Looking ahead

No hearings or votes scheduled.

History

2026
1. Jul 7Act 183, 07/06/2026 (Gov. Msg. No. 1285).Latest
2. Jul 7Act 183, on 07/06/2026 (Gov. Msg. No. 1285).Became Law
3. May 8Received notice of passage on Final Reading in House (Hse. Com. No. 888).Minor
4. May 7Transmitted to Governor.
5. May 6Passed Final Reading as amended in CD 1 with none voting aye with reservations; none voting no (0) and none excused (0).Major
  - Vote recorded Passed Final Reading as amended in CD 1. Result: pass.Lower
6. May 6Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none.Major
7. May 6Received notice of Final Reading (Sen. Com. No. 816).Minor
8. May 1Conference Committee Meeting will reconvene on Friday, 05-01-26 at 11:30AM in Conference Room 411.
  - Vote recorded The Conference Committee recommends that the measure be Passed, with Amendments. Result: pass.Lower
  - Vote recorded The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. Result: pass.Upper
9. May 1Conference Committee Meeting will reconvene on Friday, 05-01-26 at 4:31PM in Conference Room 411.
10. May 1Conference committee meeting to reconvene on 05-01-26 5:37 PM; Conference Room 329.
11. May 1Conference committee meeting to reconvene on 05-01-26 5:40 PM; Conference Room 309.
12. May 1The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 3 Aye(s): Senator(s) DeCoite, Wakai, Lamosao; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella.Minor
13. May 1The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 4 Ayes: Representative(s) Ilagan, Hussey, Tam, Gedeon; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.Minor
14. May 1Reported from Conference Committee (Conf Com. Rep. No. 188-26) as amended in (CD 1).
15. May 1Forty-eight (48) hours notice Wednesday, 05-06-26.
16. May 1Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 188-26).
17. May 148 Hrs. Notice (as amended CD 1) 05-06-26
18. Apr 30Conference Committee Meeting will reconvene on Friday 05-01-26 8:01AM in conference room 411.
19. Apr 28Bill scheduled for Conference Committee Meeting on Thursday, 04-30-26 8:30AM in conference room 411.
20. Apr 23Received notice of Senate conferees (Sen. Com. No. 725).Minor
21. Apr 22Senate Conferees Appointed: DeCoite Chair; Wakai, Lamosao Co-Chairs; Fevella.
22. Apr 20House Conferees Appointed: Ilagan, Hussey Co-Chairs; Tam, Gedeon.
23. Apr 20Received notice of appointment of House conferees (Hse. Com. No. 786).Minor
24. Apr 17Received notice of disagreement (Hse. Com. No. 780).Minor
25. Apr 16House disagrees with Senate amendment (s).Minor
26. Apr 14Report adopted; Passed Third Reading. Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House.Passed Senate
  - Vote recorded Report adopted; Passed Third Reading. Result: pass.Upper
27. Apr 14Returned from Senate (Sen. Com. No. 706) in amended form (SD 1).
28. Apr 10Reported from WAM/CPN (Stand. Com. Rep. No. 3737) with recommendation of passage on Third Reading.
29. Apr 10One Day Notice 04-14-26.
30. Apr 7The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. The votes in WAM were as follows: 11 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Lee, C., Richards.Minor
  - Vote recorded The committee(s) on CPN recommend(s) that the measure be PASSED, UNAMENDED. Result: pass.Upper
  - Vote recorded The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. Result: pass.Upper
31. Apr 7The committee(s) on CPN recommend(s) that the measure be PASSED, UNAMENDED. The votes in CPN were as follows: 4 Aye(s): Senator(s) Keohokalole, Fukunaga, Lamosao, McKelvey; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Awa.Minor
32. Apr 2The committee(s) on WAM/CPN will hold a public decision making on 04-07-26 10:30AM; Conference Room 211 & Videoconference.
33. Mar 24Reported from EDT (Stand. Com. Rep. No. 3145) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM/CPN.
34. Mar 24Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM/CPN.Minor
35. Mar 17The committee(s) on EDT recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in EDT were as follows: 3 Aye(s): Senator(s) DeCoite, Wakai, Fukunaga; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Kim, Fevella.Minor
  - Vote recorded The committee(s) on EDT recommend(s) that the measure be PASSED, WITH AMENDMENTS. Result: pass.Upper
36. Mar 13The committee(s) on EDT has scheduled a public hearing on 03-17-26 1:00PM; Conference Room 229 & Videoconference.
37. Mar 10Referred to EDT, WAM/CPN.Minor
38. Mar 6Received from House (Hse. Com. No. 120).Minor
39. Mar 6Passed First Reading.Minor
40. Mar 5Reported from FIN (Stand. Com. Rep. No. 773-26), recommending passage on Third Reading.
  - Vote recorded Passed Third Reading. Result: pass.Lower
41. Mar 5Passed Third Reading with Representative(s) Iwamoto voting aye with reservations; none voting no (0) and Representative(s) Perruso excused (1). Transmitted to Senate.Passed House
42. Mar 2The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 16 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Perruso, Templo, Yamashita, Alcos, Gedeon, Reyes Oda; Ayes with reservations: none; Noes: none; and Excused: none.Minor
  - Vote recorded The committee on FIN recommend that the measure be PASSED, UNAMENDED. Result: pass.Lower
43. Feb 27Bill scheduled to be heard by FIN on Monday, 03-02-26 2:00PM in House conference room 308 VIA VIDEOCONFERENCE.
44. Feb 18Reported from ECD (Stand. Com. Rep. No. 424-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
  - Vote recorded Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN. Result: pass.Lower
45. Feb 18Passed 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 none excused (0).Minor
46. Feb 13The 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, Yamashita, Gedeon; Ayes with reservations: none; Noes: none; and Excused: none.Minor
  - Vote recorded The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. Result: pass.Lower
47. Feb 10Bill scheduled to be heard by ECD on Friday, 02-13-26 8:30AM in House conference room 423 VIA VIDEOCONFERENCE.
48. Feb 2Referred to ECD, FIN, referral sheet 6Minor
49. Jan 28Introduced and Pass First Reading.Introduced

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History

What it does

Where do you stand?

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More on this bill

Where it stands

Looking ahead

History