II 

Calendar No. 163 

118TH CONGRESS 

1ST SESSION S. 673 

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 

MARCH 7, 2023 

Ms. ROSEN (for herself, Ms. ERNST, Ms. DUCKWORTH, Mr. RUBIO, and Mr. 

RISCH) introduced the following bill; which was read twice and referred 

to the Committee on Small Business and Entrepreneurship 

JULY 25, 2023 

Reported by Mr. CARDIN, without amendment 

A BILL 

To allow nonprofit child care providers to participate in 

certain loan programs of the Small Business Administration, and for other purposes. 

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 ‘‘Small Business Child 

5 Care Investment Act’’. 


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1 SEC. 2. SMALL BUSINESS LOANS FOR NONPROFIT CHILD 

2 CARE PROVIDERS. 

3 (a) IN GENERAL.—Section 3(a) of the Small Busi4 ness Act (15 U.S.C. 632(a)) is amended by adding at the 

5 end the following: 

6 ‘‘(10) NONPROFIT CHILD CARE PROVIDERS.— 

7 ‘‘(A) DEFINITION.—In this paragraph, the 

8 term ‘covered nonprofit child care provider’ 

9 means an organization— 

10 ‘‘(i) that— 

11 ‘‘(I) is in compliance with licens12 ing requirements for child care pro13 viders of the State in which the orga14 nization is located; 

15 ‘‘(II) is described in section 

16 501(c)(3) of the Internal Revenue 

17 Code of 1986 and exempt from tax 

18 under section 501(a) of such Code; 

19 ‘‘(III) is primarily engaged in 

20 providing child care for children from 

21 birth to compulsory school age; and 

22 ‘‘(IV) is in compliance with the 

23 size standards established under this 

24 subsection for business concerns in 

25 the applicable industry; 


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1 ‘‘(ii) for which each employee and reg2 ular volunteer complies with the criminal 

3 background check requirements under sec4 tion 658H(b) of the Child Care and Devel5 opment Block Grant Act of 1990 (42 

6 U.S.C. 9858f(b)); 

7 ‘‘(iii) that may— 

8 ‘‘(I) provide care for school-age 

9 children outside of school hours or 

10 outside of the school year; or 

11 ‘‘(II) offer preschool or pre12 kindergarten educational programs; 

13 and 

14 ‘‘(iv) subject to any exemption under 

15 Federal law applicable to the organization, 

16 that certifies to the Administrator that the 

17 organization will not discriminate in any 

18 business practice, including providing serv19 ices to the public, on the basis of race, 

20 color, religion, sex, sexual orientation, mar21 ital status, age, disability, or national ori22 gin. 

23 ‘‘(B) ELIGIBILITY FOR CERTAIN LOAN

24 PROGRAMS.— 


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1 ‘‘(i) IN GENERAL.—Notwithstanding 

2 any other provision of this subsection, a 

3 covered nonprofit child care provider shall 

4 be deemed to be a small business concern 

5 for purposes of loans under section 7(a) of 

6 this Act or financing under title V of the 

7 Small Business Investment Act of 1958 

8 (15 U.S.C. 695 et seq.). 

9 ‘‘(ii) LOAN GUARANTEE.—A covered 

10 nonprofit child care center provider— 

11 ‘‘(I) shall obtain a guarantee of 

12 timely payment of the loan or financ13 ing from another person or entity to 

14 be eligible for a loan or financing of 

15 more than $500,000 under the au16 thority under clause (i); and 

17 ‘‘(II) shall not be required to ob18 tain a guarantee of timely payment of 

19 the loan or financing to be eligible for 

20 a loan or financing that is not more 

21 than $500,000 under the authority 

22 under clause (i). 

23 ‘‘(C) LIMITATION ON BASIS FOR INELIGI24 BILITY.—The Administrator may not determine 

25 that a covered nonprofit child care center proVerDate Sep 11 2014 04:40 Jul 26, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S673.RS S673

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1 vider is not eligible for a loan or financing de2 scribed in subparagraph (B)(i) on the basis that 

3 the proceeds of the loan or financing will be 

4 used for a religious activity protected under the 

5 First Amendment to the Constitution of the 

6 United States, as interpreted by the courts of 

7 the United States.’’. 

8 (b) REPORTING.— 

9 (1) DEFINITION.—In this subsection, the term 

10 ‘‘covered nonprofit child care provider’’ has the 

11 meaning given the term in paragraph (10) of section 

12 3(a) of the Small Business Act (15 U.S.C. 632(a)), 

13 as added by subsection (a). 

14 (2) REQUIREMENT.—Not later than 1 year 

15 after the date of enactment of this Act, and annually 

16 thereafter, the Administrator of the Small Business 

17 Administration shall submit to Congress a report 

18 that contains— 

19 (A) for the year covered by the report— 

20 (i) the number of loans made under 

21 section 7(a) of the Small Business Act (15 

22 U.S.C. 636(a)) and the number of 

23 financings provided under title V of the 

24 Small Business Investment Act of 1958 


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1 (15 U.S.C. 695 et seq.) to covered non2 profit child care providers; and 

3 (ii) the amount of such loans made 

4 and the amount of such financings pro5 vided to covered nonprofit child care pro6 viders; and 

7 (B) any other information determined rel8 evant by the Administrator. 


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Calendar No. 163 

118TH CONGRESS 

1ST SESSION S. 673 

A BILL 

To allow nonprofit child care providers to particiness Administration, and for other purposes. pate in certain loan programs of the Small BusiJULY 25, 2023 

Reported without amendment 


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