Hawaii legislation · 2026 Regular Session
Hawaii HB2583: Relating to Economic Development.
Status: Signed into law, July 7, 2026
Establishes 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. Allows borrower fees and state matching contributions to capitalize lender-held loan loss reserve accounts. Establishes the Hawaii Micro-Lending Credit Enhancement Special Fund. Requires reports to the Legislature. Appropriates funds.
What the bill says
A bill for an act relating to economic development.
From the enrolled text:
A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT. SECTION 1. The legislature finds that access to affordable, right--sized credit is essential for small business formation, survival, and expansion in the State's geographically isolated and high-cost economy. Small businesses, particularly startups, sole proprietors, and very small employers, depend on smaller-dollar loans to finance working capital, equipment, inventory, leasehold improvements, and early operating expenses. The legislature further finds that publicly available data from the United States Small Business Administration (SBA) indicates that a substantial share of SBA-backed loans made to Hawaii businesses are originated by lenders headquartered outside the State, rather than by Hawaii-based banks and community lenders. This pattern reflects limited local capacity for smaller-dollar lending and constrained lender risk tolerance in the absence of credit enhancement tools. The legislature additionally finds that when small business credit is primarily originated by out-of-state lenders, interest 2026--3314 HB2583 CD1 HMSO I--I.B. NO. ~ C.D. payments, fees, and servicing revenues are more likely to leave the State, reducing the local economic multiplier effect that would otherwise occur if those dollars were retained and reinvested through local financial institutions. Over time, this dynamic contributes to capital leakage from the State and weakens the State's locally rooted small business financing ecosystem. The legislature also finds that limited availability of locally delivered micro-loans increases financial risk …
Sponsors
- Kirstin Kahaloa (D, 6) · primary sponsor
- Susan Keohokapu-Lee Loy (D, 2)
- Darius Kila (D, 44)
- Matthias Kusch (D, 1)
- Lisa Marten (D, 51)
- Tyson Miyake (D, 10)
- Amy Perruso (D, 46)
- Mahina Poepoe (D, 13)
- Julie Reyes Oda (R, 40)
- Garner Shimizu (R, 32)
Latest actions
- : Act 183, on 07/06/2026 (Gov. Msg. No. 1285).
- : Act 183, 07/06/2026 (Gov. Msg. No. 1285).
- : Received notice of passage on Final Reading in House (Hse. Com. No. 888).
- : Transmitted to Governor.
- : Received notice of Final Reading (Sen. Com. No. 816).
- : Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none.
- : Passed Final Reading as amended in CD 1 with none voting aye with reservations; none voting no (0) and none excused (0).
- : 48 Hrs. Notice (as amended CD 1) 05-06-26
- : Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 188-26).
- : Forty-eight (48) hours notice Wednesday, 05-06-26.
Votes
- Passed Final Reading, as amended (CD 1) (May 6, 2026): 25 yea, 0 nay, passed
- Final Reading as amended in CD 1 with none voting aye with reservations; none voting no (0) and none excused (0) (May 6, 2026): 51 yea, 0 nay, passed
- none. (May 1, 2026): 4 yea, 0 nay, passed
- Conference Committee Vote (May 1, 2026): 3 yea, 0 nay, passed
- Report adopted; Passed Third Reading (April 14, 2026): 25 yea, 0 nay, passed
- WAM: recommend(s) that the measure be PASSED, UNAMENDED (April 7, 2026): 11 yea, 0 nay, passed
Subjects: Report, Appropriations, Economic Development, Rules, DBEDT, Reports
Common questions
- What is HB2583?
- HB2583 is a bill in the Hawaii Legislature (2026 Regular Session): Relating to Economic Development.
- What does HB2583 do?
- In its own words: A bill for an act relating to economic development.
- What is the status of HB2583?
- Signed into law as of July 7, 2026. Latest action: Act 183, on 07/06/2026 (Gov. Msg. No. 1285). (July 7, 2026).
- Who sponsored HB2583?
- Kirstin Kahaloa (D, 6), with 9 co-sponsors.
- Where is the official record for HB2583?
- On the Hawaii Legislature website: https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=HB&billnumber=2583&year=2026
Source: official Hawaii record. Tracked by Delilah, AI for legislation across all 50 states and Congress.