[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10115 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 10115
To amend the Small Business Act and the Small Business Investment Act
of 1958 to provide resources, counseling, and access to capital for
child care providers, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 12, 2024
Mr. Landsman introduced the following bill; which was referred to the
Committee on Small Business
_______________________________________________________________________
A BILL
To amend the Small Business Act and the Small Business Investment Act
of 1958 to provide resources, counseling, and access to capital for
child care providers, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Child Care for Small Businesses
Act''.
SEC. 2. SMALL BUSINESS LOANS FOR COVERED NONPROFIT CHILD CARE
PROVIDERS.
(a) In General.--Section 3 of the Small Business Act (15 U.S.C.
632) is amended by adding at the end the following new subsection:
``(gg) Covered Nonprofit Child Care Provider.--In this Act, the
term `covered nonprofit child care provider' means an organization--
``(1) that--
``(A) is in compliance with licensing requirements
for child care providers of the State in which the
organization is located;
``(B) is described in section 501(c)(3) of the
Internal Revenue Code of 1986 and exempt from tax under
section 501(a) of such Code;
``(C) is primarily engaged in providing child care
for children from birth to compulsory school age; and
``(D) is in compliance with applicable industry-
based size standard established under subsection (a);
``(2) for which each employee and regular volunteer
complies with the criminal background check requirements under
section 658H(b) of the Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858f(b));
``(3) that may--
``(A) provide care for school-age children outside
of school hours or outside of the school year; or
``(B) offer preschool or prekindergarten
educational programs; and
``(4) subject to any exemption under Federal law applicable
to the organization, that certifies to the Administrator that
the organization will not discriminate in any business
practice, including providing services to the public, on the
basis of race, color, religion, sex, sexual orientation,
marital status, age, disability, or national origin.''.
(b) Eligibility of Nonprofit Child Care Providers for 7(a) Loans.--
Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended by
adding at the end the following new paragraph:
``(38) Covered nonprofit child care providers.--
``(A) In general.--The Administrator may guarantee
loans made to a covered nonprofit child care provider
under the same terms, conditions, and processes as a
loan made under this subsection.
``(B) Loan guarantee.--A covered nonprofit child
care provider that receives a loan under this
subsection--
``(i) with respect to a loan greater than
$500,000, shall obtain a guarantee of timely
payment of the loan from another person; and
``(ii) with respect to a loan less than or
equal to $500,000, may not be required to
obtain a guarantee of timely payment of the
loan.
``(C) Limitation on basis for ineligibility.--The
Administrator may not determine that a covered
nonprofit child care provider is not eligible for a
loan under this section on the basis that the proceeds
of such loan will be used for a religious activity
protected under the First Amendment to the Constitution
of the United States (as determined by a court of
competent jurisdiction).
``(D) Report.--Not later than 1 year after the date
of the enactment of this Act, and annually thereafter,
the Administrator shall submit to Congress a report
that contains--
``(i) for the year covered by the report,
the number and dollar value of loans made under
this paragraph; and
``(ii) any other information determined
relevant by the Administrator.''.
(c) Eligibility of Nonprofit Child Care Providers for 504
Financing.--Title V of the Small Business Investment Act of 1958 (15
U.S.C. 695 et seq.) is amended by adding at the end the following new
section:
``SEC. 511. ASSISTANCE FOR COVERED NONPROFIT CHILD CARE PROVIDERS.
``(a) In General.--The Administrator may provide financing under
this title to a covered nonprofit child care provider (as defined in
section 3(gg) of the Small Business Act).
``(b) Guarantee.--A covered nonprofit child care provider that
receives financing under this title--
``(1) with respect to financing in an aggregate amount
greater than $500,000, shall obtain a guarantee of timely
payment of the loan from another person; and
``(2) with respect to financing in an aggregate amount less
than or equal to $500,000, may not be required to obtain a
guarantee of timely payment of the loan.
``(c) Limitation on Basis for Ineligibility.--The Administrator may
not determine that a covered nonprofit child care provider is not
eligible for a loan under this section on the basis that the proceeds
of such loan will be used for a religious activity protected under the
First Amendment to the Constitution of the United States (as determined
by a court of competent jurisdiction).
``(d) Report.--Not later than 1 year after the date of the
enactment of this Act, and annually thereafter, the Administrator shall
submit to Congress a report that contains--
``(1) for the year covered by the report, the number and
dollar value of financing provided to a covered nonprofit child
care provider under this title; and
``(2) any other information determined relevant by the
Administrator.''.
SEC. 3. ASSISTANCE PROVIDED BY SMALL BUSINESS DEVELOPMENT CENTERS.
Section 21(c)(3) of the Small Business Act (15 U.S.C. 648(c)(3)) is
amended--
(1) in subparagraph (T), by striking ``; and'';
(2) in the first subparagraph (U), in clause (v), by
striking the period at the end and inserting a semicolon;
(3) by redesignating the second subparagraph (U) as
subparagraph (V);
(4) in subparagraph (V), as so redesignated, in clause
(ii)(II), by striking the period at the end and inserting ``;
and''; and
(5) by adding at the end the following new subparagraph:
``(W) providing business assistance to small
business concerns and covered nonprofit child care
providers operating or interested in operating a child
care business, including one-on-one advising sessions,
workshops, or training cohorts on topics relating to--
``(i) developing a business, financial, and
marketing plan;
``(ii) learning operational policies and
procedures;
``(iii) implementing methods for managing
financial statements;
``(iv) fostering opportunities to expand
the business and increase revenues; and
``(v) other matters the Administrator
determines appropriate.''.
SEC. 4. ASSISTANCE PROVIDED BY WOMEN'S BUSINESS CENTERS.
Section 29 of the Small Business Act (15 U.S.C. 656) is amended--
(1) in subsection (b)--
(A) in the matter preceding paragraph (1), by
inserting ``or, to the extent provided in this
subsection, for the benefit of covered nonprofit child
care providers'' after ``by women'';
(B) in paragraph (2), by striking ``and'' at the
end;
(C) in paragraph (3), by striking the period at the
end and inserting a semicolon; and
(D) by adding at the end the following new
paragraph:
``(4) with respect to a project for the benefit of a small
business concern or covered nonprofit child care provider or
operating or interested in operating a child care business,
business assistance, including one-on-one advising sessions,
workshops, or training cohorts on topics relating to--
``(A) developing a business, financial, and
marketing plan;
``(B) learning operational policies and procedures;
``(C) implementing methods for managing financial
statements;
``(D) fostering opportunities to expand the
business and increase revenues; and
``(E) other matters the Administrator determines
appropriate.'';
(2) in subsection (d), by inserting ``and, to the extent
permitted under subsection (b), to covered nonprofit child care
providers'' after ``small business concerns''; and
(3) in subsection (n)(1), by striking ``or small business
concern'' each place it appears and inserting ``, small
business concern, or covered nonprofit child care provider''.
SEC. 5. CHILD CARE RESOURCE GUIDE.
The Small Business Act (15 U.S.C. 631 et seq.) is amended--
(1) by redesignating section 49 as section 50; and
(2) by inserting after section 48 the following new
section:
``SEC. 49. CHILD CARE RESOURCE GUIDE.
``(a) In General.--Not later than 2 years after the date of the
enactment of this section and not less frequently than every 4 years
thereafter, the Administrator shall publish or update a resource guide
for small business concerns operating or planning to operate as child
care providers.
``(b) Guidance on Small Business Concern Matters.--The resource
guide required under subsection (a) shall include--
``(1) guidance for such small business concerns related to
business operations of a child care provider (including
marketing and management planning);
``(2) references to other Federal programs and guides,
resources, and websites relating to the overall quality of
child care provider operations, including safety measures and
training for employees of such provider; and
``(3) any other matters the Administrator determines
appropriate.
``(c) Publication and Dissemination Required.--
``(1) Publication.--The Administrator, women's business
centers (as described under section 29), small business
development centers, chapters of the Service Corps of Retired
Executives (established under section 8(b)(1)(B)), and Veteran
Business Outreach Centers (as described under section 32) shall
make the resource guide required under subsection (a) publicly
available on an appropriate website.
``(2) Distribution.--
``(A) By administrator.--The Administrator shall
distribute the resource guide required under subsection
(a) electronically to offices of the Administration,
including district offices.
``(B) By other entities.--District offices of the
Administration, women's business centers (as described
under section 29), small business development centers,
chapters of the Service Corps of Retired Executives
(established under section 8(b)(1)(B)), and Veteran
Business Outreach Centers (as described under section
32) shall--
``(i) distribute the resource guide
required under subsection (a) to small business
concerns operating or planning to operate as
child care providers; and
``(ii) make available physical copies of
such guide.''.
SEC. 6. REPORT ON FOR-PROFIT CHILD CARE PROVIDERS.
(a) In General.--Not later than 120 days after the date of the
enactment of this Act, the Administrator of the Small Business
Administration shall submit to Congress a study and report on for-
profit child care providers that includes--
(1) an assessment of the challenges and needs of such
providers;
(2) a description of the resources and support that the
Small Business Administration provides to such providers;
(3) any deficiencies in the resources and support described
under paragraph (2); and
(4) any recommendations for legislative actions necessary
to address any challenges or needs faced by such providers that
are identified by the report required in this subsection.
(b) Designated Employee Duties.--The Administrator of the Small
Business Administration shall designate a full-time employee within the
Administration as a point of contact for for-profit child care
providers. Such employee shall--
(1) carry out the study required under subsection (a); and
(2) provide recommendations to the Administrator on how to
better deliver existing resources and support to for-profit
child care providers.
(c) For-Profit Child Care Provider Defined.--The term ``for-profit
child care provider'' has the meaning given the term ``eligible child
care provider'' in section 658P of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858n) and is a provider that operates--
(1) on a for-profit basis; and
(2) in one or more of the several States or the District of
Columbia.
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