To amend the Small Business Investment Act of 1958 to establish a pilot program for lending to small, nonprofit child care businesses.

Summary: Child Care Lending Pilot Act of 2003 - Allows proceeds of loans made through the Small Business Administration (SBA) to local certified development companies for plant acquisition, construction, or expansion to be used to provide loans to small, nonprofit child care businesses, provided that: (1) the loan will be used for a sound business purpose approved by the SBA Administrator; (2) each business receiving the assistance meets eligibility requirements applicable to for-profit businesses; (3) one or more individuals have personally guaranteed the loan; and (4) the child care business has both clear and singular title to the collateral for the loan and sufficient cash flow to meet loan obligations and reasonable operating expenses. Prohibits more than seven percent of the total number of loans guaranteed in any fiscal year for local development companies from being awarded under this program. Terminates such authority at the end of FY 2006.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Child Care Lending Pilot Act of 
2003''.

SEC. 2. CHILD CARE LENDING PILOT PROGRAM.

    (a) Loans Authorized.--Notwithstanding section 502(1) of the Small 
Business Investment Act of 1958, the proceeds of any loan described in 
section 502 of such Act may be used by the certified development 
company to provide loans to small, nonprofit child care businesses, 
provided that--
            (1) the loan will be used for a sound business purpose that 
        has been approved by the Administrator of the Small Business 
        Administration (hereafter in this section referred to as the 
        Administrator);
            (2) each such business meets the eligibility requirements 
        applicable to for-profit businesses receiving a similar loan, 
        except for status as a for-profit business;
            (3) 1 or more individuals have personally guaranteed the 
        loan;
            (4) the small, non-profit child care business has clear and 
        singular title to the collateral for the loan; and
            (5) the small, non-profit child care business has 
        sufficient cash flow from its operations to meet its 
        obligations on the loan and its normal and reasonable operating 
        expenses.
    (b) Limitation on Volume.--Not more than 7 percent of the total 
number of loans guaranteed in any fiscal year under title V of the 
Small Business Investment Act of 1958 may be awarded under the program 
described in this section.
    (c) Small, Nonprofit Child Care Business.--For purposes of this 
section, the term ``small, non-profit child care business'' means an 
organization that--
            (1) 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;
            (2) is primarily engaged in providing child care for 
        infants, toddlers, pre-school, or pre-kindergarten children (or 
        any combination thereof), may provide care for older children 
        when they are not in school, and may offer pre-kindergarten 
        educational programs;
            (3) including its affiliates, has tangible net worth that 
        does not exceed $7,000,000, and has average net income 
        (excluding any carryover losses) for the preceding 2 completed 
        fiscal years that does not exceed $2,500,000; and
            (4) is licensed as a child care provider by the District of 
        Columbia, the insular area, or the State, in which it is 
        located.
    (d) Termination.--No loan shall be made under this section after 
September 30, 2006.
    (e) Reports.--
            (1) Small business administration.--Not later than 6 months 
        after the date of the enactment of this Act, and every 6 months 
        thereafter until September 30, 2006, the Administrator shall 
        submit a report to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives regarding the 
        implementation of the loan program described in this section. 
        Each such report shall include--
                    (A) the date on which the loan program is 
                implemented;
                    (B) the date on which the rules are issued pursuant 
                to subsection (f); and
                    (C) the number and dollar amount of loans under the 
                program applied for, approved, and disbursed during the 
                previous 6 months.
            (2) General accounting office.--Not later than March 31, 
        2006, the Comptroller General of the United States shall submit 
        a report to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives regarding the 
        assistance provided under the loan program established by this 
        section. Such report shall include information regarding the 
        first 2 years of the loan program, including--
                    (A) an evaluation of the timeliness of the 
                implementation of the loan program;
                    (B) a description of the effectiveness and ease 
                with which certified development companies, lenders, 
                and small businesses have participated in the loan 
                program;
                    (C) a description and assessment of how the loan 
                program was marketed;
                    (D) by location (State, insular area, and District 
                of Columbia) and in total, the number of small, 
                nonprofit child care businesses that--
                            (i) applied for loans under the program 
                        (stated separately for new and expanding child 
                        care providers); and
                            (ii) received loan disbursements under the 
                        program (stated separately for new and 
                        expanding child care providers);
                    (E) the total amount loaned to such businesses 
                under the program;
                    (F) the total number of loans made to such 
                businesses under the program;
                    (G) the average loan amount and term of loans made 
                under the program;
                    (H) the currency rate, delinquencies, defaults, and 
                losses of the loans made under the program;
                    (I) the number and percent of children served 
                through the program who receive subsidized assistance; 
                and
                    (J) the number and percent of children served 
                through the program who are low income.
            (3) Access to information.--
                    (A) Collection.--The Administrator shall collect 
                and maintain such information as may be necessary to 
                carry out paragraph (2) from certified development 
                centers and child care providers, and such centers and 
                providers shall comply with a request for information 
                from the Administrator for that purpose.
                    (B) Provision of information to gao.--The 
                Administrator shall provide information collected under 
                subparagraph (A) to the Comptroller General of the 
                United States for purposes of the report required by 
                paragraph (2).
    (f) Rulemaking Authority.--Not later than 120 days after the date 
of the enactment of this Act, the Administrator shall issue final rules 
to carry out the loan program authorized by this section.