RELATING TO ECONOMIC DEVELOPMENT.

Authorizes the Department of Business, Economic Development, and Tourism (DBEDT) to make loans to small business with annual revenues less than $500,000 at a simple interest rate of three per cent below the prime rate or at a rate of five and one-half per cent a year, whichever is lower. Waives the requirement that an applicant be ineligible for any other financial assistance to qualify for a DBEDT loan if the proposed loan is a participation loan whereby the department's participation is not greater than eighty per cent of the loan amount.

RELATING TO INSURANCE.

Creates a insurance pool for small businesses by authorizing the Hawaii Employers' Mutual Insurance Company to cover general liability and property damage claims incurred by small businesses.

RELATING TO HAWAII EMPLOYERS' MUTUAL INSURANCE COMPANY.

Requires Hawaii Employers' Mutual Insurance Company to offer general liability insurance for small businesses and nonprofit organizations.

RELATING TO TAX CREDITS.

Establishes a tax credit for renovation costs incurred by small businesses, provided the renovations are performed by State-licensed contractors or businesses.

RELATING TO INCOME TAX

Allows certain small businesses to claim an income tax credit of up to fifteen per cent of prepaid health insurance premiums paid for employees and their families.

RELATING TO TAXATION.

Establishes a research and development income tax credit for qualifying small businesses.

RELATING TO TAXATION.

Establishes an investment and improvements income tax credit for qualifying small businesses.