H.C.R. NO.














Requesting financial institutions to temporarily reduce interest rates on outstanding loans that have been made to small businesses to assist those businesses in recovering from the effects of the coronavirus disease 2019 pandemic.




        WHEREAS, the coronavirus disease 2019 (COVID-19) pandemic continues to endanger the health, safety, welfare, and economic well-being of the people of Hawaii; and


        WHEREAS, in this State, more than one in three workers has filed an unemployment claim during the pandemic, incomes in nearly half of all households have declined, and one in four households have been delinquent in paying for at least some of their expenses; and


WHEREAS, there are approximately 125,000 small businesses in Hawaii, which collectively employ more than 250,000 individuals; and


        WHEREAS, nationwide, eighty percent of small business owners polled expressed that the COVID-19 pandemic had negatively impacted their business; and


        WHEREAS, while the Paycheck Protection Program and other programs have assisted small businesses in retaining employees and remaining in operation, many small businesses continue to struggle financially; and


        WHEREAS, prior to the pandemic, many small businesses secured loans from financial institutions to finance the purchase of equipment, land, and other capital; and


        WHEREAS, an estimated seventy percent of all small businesses nationwide have an outstanding loan; and


        WHEREAS, the interest on those loans continues to accrue, whether or not a small business is able to generate revenue; and


        WHEREAS, if financial institutions temporarily lowered the interest rates for loans made to small businesses, that would lower the cost of doing business, assist small businesses in retaining employees, and help to prevent businesses from closing; now, therefore,


        BE IT RESOLVED by the House of Representatives of the Thirty-first Legislature of the State of Hawaii, Regular Session of 2021, the Senate concurring, that financial institutions are requested to temporarily reduce interest rates on all commercial loans that have been made to businesses having ten or fewer employees; and


        BE IT FURTHER RESOLVED that the financial institutions are requested to continue the reduced interest rates until the economy has recovered from the effects of the COVID-19 pandemic or for one year, whichever is longer; and


        BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Commissioner of Financial Institutions who is requested to provide copies to all financial institutions in Hawaii that provide commercial loans and are regulated by the Division of Financial Institutions.









Report Title:  

COVID-19; Pandemic; Small Business; Loans; Financial Institutions