HI HB702

Establishes a Small Business Hardship Loan Program administered by the Department of Business, Economic Development, and Tourism to provide direct loans to eligible small businesses experiencing economic hardship.

Defines small businesses as Hawaii-domiciled, for-profit entities wholly owned and operated by Hawaii residents that employ fewer than 100 full-time employees.

Sets loan interest rates at one percent below the prime rate or a specified percentage per year, whichever is lower, with the prime rate determined monthly using the two largest banks in the state.

Requires eligible small businesses to obtain a tax clearance certificate from the Department of Taxation and limits each business to one loan under the program.

Establishes the Small Business Hardship Loan Revolving Fund to be funded by legislative appropriations, loan repayments, interest income, and federal funds, with an unspecified appropriation for fiscal years 2011-2012 and 2012-2013.