[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 273 Reported in Senate (RS)]
<DOC>
Calendar No. 9
119th CONGRESS
1st Session
S. 273
To allow nonprofit child care providers to participate in certain loan
programs of the Small Business Administration, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 28, 2025
Ms. Rosen (for herself, Ms. Ernst, Mr. Risch, and Mr. Warner)
introduced the following bill; which was read twice and referred to the
Committee on Small Business and Entrepreneurship
February 10, 2025
Reported by Ms. Ernst, with an amendment
[Omit the part struck through and insert the part printed in italic]
_______________________________________________________________________
A BILL
To allow nonprofit child care providers to participate in certain loan
programs of the Small Business Administration, 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 ``Small Business Child Care Investment
Act''.
SEC. 2. SMALL BUSINESS LOANS FOR NONPROFIT CHILD CARE PROVIDERS.
(a) Business Loan Program.--Section 3(a) of the Small Business Act
(15 U.S.C. 632(a)) is amended by adding at the end the following:
``(10) Nonprofit child care providers.--
``(A) Definition.--In this paragraph, the term
`covered nonprofit child care provider' means an
organization--
``(i) that--
``(I) is in compliance with
licensing requirements for child care
providers of the State in which the
organization is located;
``(II) 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;
``(III) is primarily engaged in
providing child care for children from
birth to compulsory school age; and
``(IV) is in compliance with the
size standards established under this
subsection for business concerns in the
applicable industry;
``(ii) 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));
``(iii) that may--
``(I) provide care for school-age
children outside of school hours or
outside of the school year; or
``(II) offer preschool or
prekindergarten educational programs;
and
``(iv) 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 for certain loan programs.--
``(i) In general.--Notwithstanding any
other provision of this subsection, a covered
nonprofit child care provider shall be deemed
to be a small business concern for purposes of
loans and financings under section 7(a).
``(ii) Prohibition on direct lending.--A
loan or financing to a covered nonprofit child
care provider made under the authority under
clause (i) shall be made in cooperation with
banks, certified development companies, or
other financial institutions through agreements
to participate on a deferred (guaranteed)
basis. The Administrator is prohibited from
making a direct loan or financing or entering
an agreement to participate on an immediate
basis for a loan or financing made to a covered
nonprofit child care provider under the
authority under clause (i).
``(iii) Loan guarantee.--A covered
nonprofit child care provider--
``(I) shall obtain a guarantee of
timely payment of the loan or financing
from another person or entity to be
eligible for such loan or financing of
more than $500,000 under the authority
under clause (i); and
``(II) may not be required to
obtain a guarantee of timely payment of
the loan or financing to be eligible
for such loan or financing that is not
more than $500,000 under the authority
under clause (i).
``(C) Limitations.--
``(i) Basis for ineligibility.--The
Administrator may not determine that a covered
nonprofit child care provider is not eligible
for a loan or financing described in
subparagraph (B)(i) on the basis that the
covered nonprofit child care provider is
associated with an entity whose activities are
protected under the First Amendment to the
Constitution of the United States, as
interpreted by the courts of the United States.
``(ii) Use of funds.--A covered nonprofit
child care provider receiving a loan or
financing described in subparagraph (B)(i) may
not use the proceeds of the loan or financing
for a religious activity protected under the
First Amendment to the Constitution of the
United States, as interpreted by the courts of
the United States.''.
(b) 504 Program.--Section 502 of the Small Business Investment Act
of 1958 (15 U.S.C. 696) is amended--
(1) in the matter preceding paragraph (1), by striking
``The Administration'' and inserting the following:
``(a) In General.--The Administration''; and
(2) by adding at the end the following:
``(b) Nonprofit Child Care Providers.--
``(1) Definition.--In this subsection, the term `covered
nonprofit child care provider' has the meaning given that term
in section 3(a)(10) of the Small Business Act (15 U.S.C.
636(a)(10) 632(a)(10)).
``(2) Eligibility for certain loan programs.--
``(A) In general.--Notwithstanding any other
provision of this title, a covered nonprofit child care
provider shall be deemed to be a small business concern
for purposes of loans and financings under this title.
``(B) Prohibition on direct lending.--A loan or
financing to a covered nonprofit child care provider
made under the authority under subparagraph (A) shall
be made in cooperation with banks, certified
development companies, or other financial institutions
through agreements to participate on a deferred
(guaranteed) basis. The Administrator is prohibited
from making a direct loan or financing or entering an
agreement to participate on an immediate basis for a
loan or financing made to a covered nonprofit child
care provider under the authority under subparagraph
(A).
``(C) Loan guarantee.--A covered nonprofit child
care provider--
``(i) shall obtain a guarantee of timely
payment of the loan or financing from another
person or entity to be eligible for such loan
or financing of more than $500,000 under the
authority under subparagraph (A); and
``(ii) may not be required to obtain a
guarantee of timely payment of the loan or
financing to be eligible for such loan or
financing that is not more than $500,000 under
the authority under subparagraph (A).
``(3) Limitations.--
``(A) Basis for ineligibility.--The Administrator
may not determine that a covered nonprofit child care
provider is not eligible for a loan or financing
described in paragraph (2)(A) on the basis that the
covered nonprofit child care provider is associated
with an entity whose activities are protected under the
First Amendment to the Constitution of the United
States, as interpreted by the courts of the United
States.
``(B) Use of funds.--A covered nonprofit child care
provider receiving a loan or financing described in
paragraph (2)(A) may not use the proceeds of the loan
or financing for a religious activity protected under
the First Amendment to the Constitution of the United
States, as interpreted by the courts of the United
States.''.
(c) Reporting.--
(1) Definition.--In this subsection, the term ``covered
nonprofit child care provider'' has the meaning given the term
in paragraph (10) of section 3(a) of the Small Business Act (15
U.S.C. 632(a)), as added by subsection (a).
(2) Requirement.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter, the
Administrator of the Small Business Administration shall submit
to Congress a report that contains--
(A) for the year covered by the report--
(i) the number of loans and financings made
under section 7(a) of the Small Business Act
(15 U.S.C. 636(a)) to covered nonprofit child
care providers;
(ii) the amount of the loans and financings
described in clause (i);
(iii) the number of loans and financings
provided under title V of the Small Business
Investment Act of 1958 (15 U.S.C. 695 et seq.)
to covered nonprofit child care providers; and
(iv) the amount of the loans and financings
described in clause (iii); and
(B) any other information determined relevant by
the Administrator.
Calendar No. 9
119th CONGRESS
1st Session
S. 273
_______________________________________________________________________
A BILL
To allow nonprofit child care providers to participate in certain loan
programs of the Small Business Administration, and for other purposes.
_______________________________________________________________________
February 10, 2025
Reported with an amendment