SB 1303 Hawaii Senate · 2026 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)

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Feb 2025

Senate Passage

Feb 2025

House Passage

Governor

Introduced Jan 21, 2025 Last action Dec 8, 2025

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What changed between versions

SB1303 → SB1303_SD1 · 5 edits

MODERATE

This bill updates Hawaii's agricultural loan program to help farmers access capital for rising costs and labor shortages. Key changes include increasing loan limits, clarifying definitions for large-scale import replacement crops, and creating a new line of credit option for farm operations.

Scope change

The bill's scope was expanded to explicitly include a new class of revolving credit (lines of credit) for farm operational expenses and to clarify that import replacement crops must be grown on a large scale to impact regional or statewide markets.

DEFINITION

Redefined 'import replacement crops' to specify they must be grown on a large-scale basis in the State with the intent to replace imported crops.

ELIGIBILITY

Added a new Class K for line of credit loans, allowing farmers to access funds for operational expenses and improvements, provided the borrower maintains a good standing account.

REQUIREMENT

Increased the maximum operating loan limit from $300,000 to $750,000 and increased the facility loan limit from $500,000 to $1,500,000.

Adjusted the maximum loan amount for Class K lines of credit secured by real property from $250,000 to $250,000 (no change in value, but clarified terms) and updated Class K import replacement loan terms to require sufficient scale to impact regional or statewide markets.

FISCAL

Updated the appropriation language to refer to the 'agricultural loan revolving fund' instead of the 'agricultural loan revolving special fund'.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 10, 2025

Upper · Passed

Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.

upper

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