HI SB3165

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 credit enhancement mechanisms

Creates a voluntary program where participating lenders can enroll micro-loans made to qualified Hawaii small businesses, with borrowers paying up to 1% of principal into loan loss reserve accounts matched by state contributions

Defines eligible lenders as state/federally-chartered banks, credit unions, and certified community development financial institutions; qualified borrowers must be for-profit small businesses authorized and operating primarily in Hawaii

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

Requires annual reporting to the legislature on number and dollar amount of loans supported, participating lenders, geographic distribution, reserve claims and recoveries, and private capital leveraged per state dollar