Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Economic Development, to which was referred S.B. No. 2867 entitled:

begs leave to report as follows:

The purpose of this measure is to reinstate the capital loan revolving program and maintain moneys in the fund necessary to carry out the purposes of the capital loan revolving program.

The Department of Business, Economic Development, and Tourism testified in support of the measure.

Your Committee finds that this measure reinstates the capital loan revolving program, which provides critical financial assistance to small business owners who would otherwise be unable to obtain financing through conventional means. This loan program makes available an additional source of capital, which enables small businesses to become more productive and profitable as well as creating new jobs and increasing the tax revenues of the State.

Your Committee has amended the measure by specifying that the appropriation section shall take effect on July 1, 2004, and by making technical, nonsubstantive amendments.

As affirmed by the record of votes of the members of your Committee on Economic Development that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2867, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2867, S.D. 1, and be referred to the Committee on Ways and Means.