The bill introduces a set of structured parameters for the loan process, including a maximum loan amount of $10,000, a six-year term limit, and a simple interest rate of four percent per year. Loans will only be granted when the applicant has exhausted other financial assistance options, aiming to ensure that the loans provided are a last resort. Furthermore, it will establish a special fund to manage these loans, which will be funded by appropriations from the state legislature over the next two fiscal years.
Summary
SB706 establishes the Hawaii Start-Up Business Loan Program, which aims to provide financial support to new businesses in Hawaii. The program will be administered by the Department of Business, Economic Development, and Tourism, specifically through the Business Development and Support Division, in collaboration with the Hawaii Technology Development Corporation. This legislation is designed to enable startups to access capital needed for their initial operations, including working capital and the construction or improvement of facilities.
Contention
One notable point of contention surrounding SB706 could be its potential implications on state expenditures. While the bill aims to enhance economic growth and support entrepreneurship, critics might argue about the sustainability of funding a special loan program amid other financial obligations the state faces. Ensuring that the loan program fulfills its intended purpose without placing undue strain on the state budget will be essential for its success and longevity.