SB 1303 Hawaii Senate · 2025 Regular Session

RELATING TO AGRICULTURAL LOANS.

Summary

Updates the Agricultural Loan Program by lowering interest rates, increasing and standardizing loan limits, and reducing the number of credit denials. Authorizes the Program to issue lines of credit. Creates a new class of loans to encourage large scale agriculture of import replacement crops grown for the Farm to State Program. Appropriates funds into and out of the Agricultural Loan Revolving Fund. (SD1)

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 21, 2025 Last action Feb 10, 2025

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What changed between versions

SB1303 → SB1303_SD1 · 9 edits

MAJOR

This bill substantially rewrites Hawaii's agricultural loan program to lower interest rates, increase loan limits, and reduce credit denial requirements. It adds new loan categories for import replacement crops and lines of credit, while updating eligibility criteria and funding mechanisms to support larger-scale farming operations.

Scope change

The bill expands the agricultural loan program scope to include new loan classes for import replacement crops and lines of credit, while broadening eligibility for larger loan amounts and reducing barriers for new farmers.

REQUIREMENT

Reduced credit denial requirements from two to one denial, with exceptions for new farmers and farm trainees under $100,000.

FISCAL

Increased Class A farm ownership loan limits from $800,000 to $1,500,000 and Class B soil conservation loan limits from $35,000 to $750,000.

Reduced interest rates on most loan classes from variable rates based on prime rate to fixed 4% per year.

Added new appropriations sections for agricultural loan revolving fund and general revenue funding for fiscal year 2025-2026.

DEFINITION

Added new definition for 'import replacement crops' as large-scale crops grown to replace imported products.

SCOPE

Created new Class K loan category for import replacement crops and farm-to-state programs with $2,500,000 maximum limits.

Added new Class J line of credit loans for farm operational expenses up to $250,000 secured by real property.

Added new Class I biosecurity project loans for essential farm building improvements and equipment up to $1,000,000.

ELIGIBILITY

Updated eligibility requirements for various loan classes to allow larger loan amounts and expanded purposes.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 10, 2025

Committee

Reported from AEN (Stand. Com. Rep. No. 159) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Feb 3, 2025

Upper · Passed

The committee(s) on AEN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in AEN were as follows: 4 Aye(s): Senator(s) Gabbard, Richards, Rhoads, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) DeCoite.

upper

Jan 31, 2025

Upper · Passed

The committee(s) on AEN has scheduled a public hearing on 02-03-25 1:02PM; Conference Room 224 & Videoconference.

upper

Jan 27, 2025

Committee

Referred to AEN, WAM.

upper

Jan 23, 2025

Introduced

Introduced and passed First Reading.

upper

Jan 21, 2025

Introduced

Pending Introduction.

upper

1 primary · 0 co-sponsors