This bill lets certain nonprofit child care providers be treated as small businesses for two Small Business Administration (SBA) loan programs: section 7(a) loans and the 504 program (title V of the Small Business Investment Act). It defines a "covered nonprofit child care provider" as an organization that is state-licensed, is a 501(c)(3) nonprofit, mainly provides child care from birth through compulsory school age, meets SBA size limits, and follows federal criminal background check rules. Covered providers can offer before- or after-school care and preschool programs and must certify they will not discriminate, subject to federal exemptions.
The SBA must make loans to these providers through banks, certified development companies, or other financial institutions on a deferred (guaranteed) participation basis. The SBA is barred from making direct loans to these providers. Loans over $500,000 must have a guarantee of timely payment from another person or entity; loans $500,000 or less may not require such a guarantee. The Administrator may not deny eligibility because the provider is associated with an entity engaged in activity protected by the First Amendment. Providers may not use loan proceeds for religious activities that are protected by the First Amendment. The bill also requires the SBA to report to Congress within one year, and annually after that, on the number and amounts of 7(a) and 504 loans made to covered nonprofit child care providers and any other relevant information.
No publicly available information on federal cost estimates or appropriations is included in the bill text. The bill directs loans to be made by private lenders with SBA participation on a guaranteed basis and requires guarantees from another person or entity for loans over $500,000.
No publicly available information in the bill text or metadata about proponents' stated reasons or arguments.
No publicly available information in the bill text or metadata about opponents' stated reasons or arguments.