HI HB2583

Establishes the Hawaii Micro-Lending Credit Enhancement Program within the Department of Business, Economic Development, and Tourism to increase small business access to micro-loans through state-supported loan loss reserves and other risk-sharing mechanisms

Creates a voluntary program where participating lenders can receive credit enhancement through loan loss reserve accounts, first-loss reserve arrangements, or other approved risk-sharing tools to encourage lending to qualified small businesses

Allows borrower fees of up to 1% of loan principal plus state matching contributions to be deposited into lender-held reserve accounts that cover losses on qualified micro-loans

Establishes the Hawaii Micro-Lending Credit Enhancement Special Fund to receive legislative appropriations, federal funds, grants, and program revenues for credit enhancement and administration

Requires annual reports to the legislature detailing number and dollar amount of loans supported, participating lenders, geographic distribution, reserve activity, and estimated private capital leveraged per state dollar