HI HB1397

Adds "community development entity" definition to Hawaii Revised Statutes Chapter 210D, aligned with federal Internal Revenue Code Section 45D(c)(1) for new markets tax credit purposes.

Expands the Hawaii community-based economic development program to provide loans, guarantees, and credit enhancements (previously limited to loans and grants only).

Authorizes the department to provide loans to entities that capitalize community development entities, which then make loans to borrowers.

Increases the maximum outstanding balance on all loans, guarantees, and credit enhancements to any one applicant from $250,000 to $5,000,000.

Establishes that interest rates for guarantees and credit enhancements shall not exceed market rates for similar instruments.