Bill Text: HI HCR106 | 2021 | Regular Session | Introduced

---

Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-03-15 - Referred to PDP, CPC, referral sheet 25 [HCR106 Detail]

Download: Hawaii-2021-HCR106-Introduced.html

---

HOUSE OF REPRESENTATIVES	H.C.R. NO.	106
THIRTY-FIRST LEGISLATURE, 2021
STATE OF HAWAII

HOUSE CONCURRENT

RESOLUTION

 

 

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.

 

 

 

	OFFERED BY:	_____________________________

Report Title: 

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