HB2020 HD1

SECTION 1. The legislature finds that small businesses comprise over 96 per cent of all businesses in Hawaii and create 83 per cent of all net new jobs in the state. The Hawaii Small Business Development Center Network (Center) assists small businesses by providing high-quality counseling, training, and research services to entrepreneurs and small businesses in the areas of business startup, retention, and expansion through its counseling centers on the islands of Hawaii, Kauai, Maui, and Oahu. Funded in part by a cooperative agreement with the United States Small Business Administration, the Center requires state matching funds and an affiliation with a university or community college. The University of Hawaii at Hilo has been designated as the host institution for the Center

The Center assists entrepreneurs and small businesses with accessing capital, developing management capabilities, and building financial skills to make their businesses thrive. In addition to providing confidential one-on—one counseling by qualified business professionals free of charge, the network also offers a variety of in-class workshops, seminars, and online training.

The legislature further finds that investing in long-term business counseling has significant returns. In 2006, the Center provided long-term counseling to 255 small businesses and aspiring entrepreneurs, helping them obtain $6,300,000 in financing. Long-term counseling generated 42 cents in tax revenues for every $1 spent on the Center's programs in 2006. Hence, for every $1 spent on programs, the Center leveraged $4.82 raised from external sources.

The purpose of this Act is to appropriate funds to the Center to further its mission to create sustainable economic development through counseling, training, and research services to small businesses and entrepreneurs.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $4 or so much thereof as may be necessary for fiscal year 2008—2009 to create sustainable economic development through counseling, training, and research services at the Hawaii Small Business Development Center Network as follows:

(1) To re-establish a consulting and $1

training program in Kailua-Kona to service small businesses and entrepreneurs in west Hawaii;

(2) To add one full-time business consultant $1

position in the Oahu center and two half—time business consultant positions (one assigned to the Kauai center and another assigned to the east Hawaii center) to address the demand for consulting services and to reduce the five- to six-week waiting period in each respective office;

(3) To create two full—time business $1

development associate positions and the establishment of the center’s E Division to support entrepreneurial initiatives premised on the generation of revenues and the enhancement of the network’s capacity to serve Hawaii’s small business community; and

(4) To fill the vacant research $1

librarian position at the center’s business research library to offset the client demand for research services and provide a research support arm for the E Division.

The sum appropriated shall be expended by the University of Hawaii for the purposes of this Act.

SECTION 3. This Act shall take effect on July 1, 2020.

HOUSE OF REPRESENTATIVES	H.B. NO.	2020
TWENTY-FOURTH LEGISLATURE, 2008		H.D. 1
STATE OF HAWAII