Hawaii Senate Bill SB3058

Hawaii 2024 Regular Session

• Introduced: 1/24/24
• Refer: 1/26/24

Caption

Relating To The Hawaii Community-based Economic Development Technical And Financial Assistance Program.

Impact

By allowing a higher interest rate, SB3058 may enable the state to better manage its financial assistance programs while still attracting qualified applicants. The increase in potential interest income could allow for more sustainable funding and resource allocation within the Department of Business, Economic Development, and Tourism. However, this could also lead to higher repayment costs for borrowers, which raises concerns about the affordability of loans for small businesses in Hawaii.

Summary

SB3058 aims to amend the Hawaii Revised Statutes, specifically section 210D-10, to enhance the terms associated with loans under the Hawaii Community-Based Economic Development Technical and Financial Assistance Program. The key change proposed by this bill is to increase the maximum interest rate applicable to these loans from six percent to ten percent. This adjustment is significant as it may affect the cost of borrowing for small businesses seeking financial support through this program.

Contention

While there may be benefits from the perspective of state revenue and program viability, there are also potential points of contention regarding theability of local businesses to shoulder higher interest rates. Critics may argue that this could disproportionately impact small businesses and entrepreneurs who are already facing financial challenges. This change might provoke discussions about balancing the need for revenue generation through interest with the goal of fostering economic growth in local communities.