HI HB851

Establishes a temporary revolving loan program within the Department of Business, Economic Development, and Tourism to provide financing for small businesses on the island of Lanai.

Permits loans for plant construction, renovation, conversion, expansion, or acquisition of equipment, machinery, supplies, or materials for qualified small businesses unable to obtain financing from traditional financial institutions.

Requires applicants to demonstrate ability to repay loans from business income, maintain adequate equity investment, and exhaust other financing options before applying to the program.

Sets loan terms including a maximum interest rate of one percent below the prime rate or 7.5% annually (whichever is lower), with principal repayment deferrable for up to two years.

Authorizes the Director of Finance to issue revenue bonds and appropriate funds for fiscal year 2011-2012 to establish the revolving loan fund, with the program repealing on June 30 of an unspecified year.