I 

108TH CONGRESS 

1ST SESSION H. R. 3099

To amend the Small Business Investment Act of 1958 to establish a pilot 

program for lending to small, nonprofit child care businesses. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 16, 2003

Ms. MILLENDER-MCDONALD (for herself, Mr. CONYERS, Mr. TOWNS, Mrs. 

CHRISTENSEN, Ms. LEE, Mr. CUMMINGS, Ms. KILPATRICK, Ms. CARSON

of Indiana, Ms. CORRINE BROWN of Florida, Mr. SCOTT of Virginia, Mr. 

FROST, Mr. PAYNE, Mr. CLAY, Mr. MEEHAN, Mrs. JONES of Ohio, Ms. 

JACKSON-LEE of Texas, Mr. THOMPSON of Mississippi, Ms. NORTON, Mr. 

FRANK of Massachusetts, Mr. TIERNEY, Mr. ENGEL, Mr. WYNN, Mr. 

LYNCH, Mr. OLVER, Mr. MARKEY, Mr. NEAL of Massachusetts, Mr. 

MCGOVERN, Mr. BALLANCE, Mr. SERRANO, Ms. MCCOLLUM, and Mr. 

CAPUANO) introduced the following bill; which was referred to the Committee on Small Business 

A BILL

To amend the Small Business Investment Act of 1958 to 

establish a pilot program for lending to small, nonprofit 

child care businesses.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Child Care Lending 

5 Pilot Act of 2003’’. 
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1 SEC. 2. CHILD CARE LENDING PILOT PROGRAM. 

2 (a) LOANS AUTHORIZED.—Notwithstanding section 

3 502(1) of the Small Business Investment Act of 1958, the 

4 proceeds of any loan described in section 502 of such Act 

5 may be used by the certified development company to pro6 vide loans to small, nonprofit child care businesses, pro7 vided that—

8 (1) the loan will be used for a sound business 

9 purpose that has been approved by the Adminis10 trator of the Small Business Administration (here11 after in this section referred to as the Adminis12 trator); 

13 (2) each such business meets the eligibility re14 quirements applicable to for-profit businesses receiv15 ing a similar loan, except for status as a for-profit 

16 business; 

17 (3) 1 or more individuals have personally guar18 anteed the loan; 

19 (4) the small, non-profit child care business has 

20 clear and singular title to the collateral for the loan; 

21 and 

22 (5) the small, non-profit child care business has 

23 sufficient cash flow from its operations to meet its 

24 obligations on the loan and its normal and reason25 able operating expenses. 
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1 (b) LIMITATION ON VOLUME.—Not more than 7 per2 cent of the total number of loans guaranteed in any fiscal 

3 year under title V of the Small Business Investment Act 

4 of 1958 may be awarded under the program described in 

5 this section. 

6 (c) SMALL, NONPROFIT CHILD CARE BUSINESS.—

7 For purposes of this section, the term ‘‘small, non-profit 

8 child care business’’ means an organization that—

9 (1) is described in section 501(c)(3) of the In10 ternal Revenue Code of 1986 and exempt from tax 

11 under section 501(a) of such Code; 

12 (2) is primarily engaged in providing child care 

13 for infants, toddlers, pre-school, or pre-kindergarten 

14 children (or any combination thereof), may provide 

15 care for older children when they are not in school, 

16 and may offer pre-kindergarten educational pro17 grams; 

18 (3) including its affiliates, has tangible net 

19 worth that does not exceed $7,000,000, and has av20 erage net income (excluding any carryover losses) for 

21 the preceding 2 completed fiscal years that does not 

22 exceed $2,500,000; and 

23 (4) is licensed as a child care provider by the 

24 District of Columbia, the insular area, or the State, 

25 in which it is located. 
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1 (d) TERMINATION.—No loan shall be made under 

2 this section after September 30, 2006. 

3 (e) REPORTS.—

4 (1) SMALL BUSINESS ADMINISTRATION.—Not 

5 later than 6 months after the date of the enactment 

6 of this Act, and every 6 months thereafter until Sep7 tember 30, 2006, the Administrator shall submit a 

8 report to the Committee on Small Business and En9 trepreneurship of the Senate and the Committee on 

10 Small Business of the House of Representatives re11 garding the implementation of the loan program de12 scribed in this section. Each such report shall in13 clude—

14 (A) the date on which the loan program is 

15 implemented; 

16 (B) the date on which the rules are issued 

17 pursuant to subsection (f); and 

18 (C) the number and dollar amount of loans 

19 under the program applied for, approved, and 

20 disbursed during the previous 6 months. 

21 (2) GENERAL ACCOUNTING OFFICE.—Not later 

22 than March 31, 2006, the Comptroller General of 

23 the United States shall submit a report to the Com24 mittee on Small Business and Entrepreneurship of 

25 the Senate and the Committee on Small Business of 
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1 the House of Representatives regarding the assist2 ance provided under the loan program established by 

3 this section. Such report shall include information 

4 regarding the first 2 years of the loan program, in5 cluding—

6 (A) an evaluation of the timeliness of the 

7 implementation of the loan program; 

8 (B) a description of the effectiveness and 

9 ease with which certified development compa10 nies, lenders, and small businesses have partici11 pated in the loan program; 

12 (C) a description and assessment of how 

13 the loan program was marketed; 

14 (D) by location (State, insular area, and 

15 District of Columbia) and in total, the number 

16 of small, nonprofit child care businesses that—

17 (i) applied for loans under the pro18 gram (stated separately for new and ex19 panding child care providers); and 

20 (ii) received loan disbursements under 

21 the program (stated separately for new 

22 and expanding child care providers); 

23 (E) the total amount loaned to such busi24 nesses under the program; 
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1 (F) the total number of loans made to 

2 such businesses under the program; 

3 (G) the average loan amount and term of 

4 loans made under the program; 

5 (H) the currency rate, delinquencies, de6 faults, and losses of the loans made under the 

7 program; 

8 (I) the number and percent of children 

9 served through the program who receive sub10 sidized assistance; and 

11 (J) the number and percent of children 

12 served through the program who are low in13 come. 

14 (3) ACCESS TO INFORMATION.—

15 (A) COLLECTION.—The Administrator 

16 shall collect and maintain such information as 

17 may be necessary to carry out paragraph (2) 

18 from certified development centers and child 

19 care providers, and such centers and providers 

20 shall comply with a request for information 

21 from the Administrator for that purpose. 

22 (B) PROVISION OF INFORMATION TO

23 GAO.—The Administrator shall provide informa24 tion collected under subparagraph (A) to the 

25 Comptroller General of the United States for 
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1 purposes of the report required by paragraph 

2 (2). 

3 (f) RULEMAKING AUTHORITY.—Not later than 120 

4 days after the date of the enactment of this Act, the Ad5 ministrator shall issue final rules to carry out the loan 

6 program authorized by this section.

Æ