H.B. 702 Summary

• Establishes the 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 business" as a Hawaii-domiciled, for-profit entity wholly owned and operated by Hawaii residents, employing 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 lower rate of the two largest banks in Hawaii.

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

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