II 

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 

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) BUSINESS LOAN PROGRAM.—Section 3(a) of the 

4 Small Business Act (15 U.S.C. 632(a)) is amended by 

5 adding at the 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 and financings under 

6 section 7(a). 

7 ‘‘(ii) PROHIBITION ON DIRECT LEND8 ING.—A loan or financing to a covered 

9 nonprofit child care provider made under 

10 the authority under clause (i) shall be 

11 made in cooperation with banks, certified 

12 development companies, or other financial 

13 institutions through agreements to partici14 pate on a deferred (guaranteed) basis. The 

15 Administrator is prohibited from making a 

16 direct loan or financing or entering an 

17 agreement to participate on an immediate 

18 basis for a loan or financing made to a 

19 covered nonprofit child care provider under 

20 the authority under clause (i). 

21 ‘‘(iii) LOAN GUARANTEE.—A covered 

22 nonprofit child care provider— 

23 ‘‘(I) shall obtain a guarantee of 

24 timely payment of the loan or financ25 ing from another person or entity to 


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1 be eligible for such loan or financing 

2 of more than $500,000 under the au3 thority under clause (i); and 

4 ‘‘(II) may not be required to ob5 tain a guarantee of timely payment of 

6 the loan or financing to be eligible for 

7 such loan or financing that is not 

8 more than $500,000 under the au9 thority under clause (i). 

10 ‘‘(C) LIMITATIONS.— 

11 ‘‘(i) BASIS FOR INELIGIBILITY.—The 

12 Administrator may not determine that a 

13 covered nonprofit child care provider is not 

14 eligible for a loan or financing described in 

15 subparagraph (B)(i) on the basis that the 

16 covered nonprofit child care provider is as17 sociated with an entity whose activities are 

18 protected under the First Amendment to 

19 the Constitution of the United States, as 

20 interpreted by the courts of the United 

21 States. 

22 ‘‘(ii) USE OF FUNDS.—A covered non23 profit child care provider receiving a loan 

24 or financing described in subparagraph 

25 (B)(i) may not use the proceeds of the loan 


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1 or financing for a religious activity pro2 tected under the First Amendment to the 

3 Constitution of the United States, as inter4 preted by the courts of the United 

5 States.’’. 

6 (b) 504 PROGRAM.—Section 502 of the Small Busi7 ness Investment Act of 1958 (15 U.S.C. 696) is amend8 ed— 

9 (1) in the matter preceding paragraph (1), by 

10 striking ‘‘The Administration’’ and inserting the fol11 lowing: 

12 ‘‘(a) IN GENERAL.—The Administration’’; and 

13 (2) by adding at the end the following: 

14 ‘‘(b) NONPROFIT CHILD CARE PROVIDERS.— 

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

16 ‘covered nonprofit child care provider’ has the mean17 ing given that term in section 3(a)(10) of the Small 

18 Business Act (15 U.S.C. 636(a)(10)). 

19 ‘‘(2) ELIGIBILITY FOR CERTAIN LOAN PRO20 GRAMS.— 

21 ‘‘(A) IN GENERAL.—Notwithstanding any 

22 other provision of this title, a covered nonprofit 

23 child care provider shall be deemed to be a 

24 small business concern for purposes of loans 

25 and financings under this title. 


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1 ‘‘(B) PROHIBITION ON DIRECT LEND2 ING.—A loan or financing to a covered non3 profit child care provider made under the au4 thority under subparagraph (A) shall be made 

5 in cooperation with banks, certified development 

6 companies, or other financial institutions 

7 through agreements to participate on a deferred 

8 (guaranteed) basis. The Administrator is pro9 hibited from making a direct loan or financing 

10 or entering an agreement to participate on an 

11 immediate basis for a loan or financing made to 

12 a covered nonprofit child care provider under 

13 the authority under subparagraph (A). 

14 ‘‘(C) LOAN GUARANTEE.—A covered non15 profit child care provider— 

16 ‘‘(i) shall obtain a guarantee of timely 

17 payment of the loan or financing from an18 other person or entity to be eligible for 

19 such loan or financing of more than 

20 $500,000 under the authority under sub21 paragraph (A); and 

22 ‘‘(ii) may not be required to obtain a 

23 guarantee of timely payment of the loan or 

24 financing to be eligible for such loan or fi25 nancing that is not more than $500,000 


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1 under the authority under subparagraph 

2 (A). 

3 ‘‘(3) LIMITATIONS.— 

4 ‘‘(A) BASIS FOR INELIGIBILITY.—The Ad5 ministrator may not determine that a covered 

6 nonprofit child care provider is not eligible for 

7 a loan or financing described in paragraph 

8 (2)(A) on the basis that the covered nonprofit 

9 child care provider is associated with an entity 

10 whose activities are protected under the First 

11 Amendment to the Constitution of the United 

12 States, as interpreted by the courts of the 

13 United States. 

14 ‘‘(B) USE OF FUNDS.—A covered nonprofit 

15 child care provider receiving a loan or financing 

16 described in paragraph (2)(A) may not use the 

17 proceeds of the loan or financing for a religious 

18 activity protected under the First Amendment 

19 to the Constitution of the United States, as in20 terpreted by the courts of the United States.’’. 

21 (c) REPORTING.— 

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

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

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


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1 3(a) of the Small Business Act (15 U.S.C. 632(a)), 

2 as added by subsection (a). 

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

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

5 thereafter, the Administrator of the Small Business 

6 Administration shall submit to Congress a report 

7 that contains— 

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

9 (i) the number of loans and financings 

10 made under section 7(a) of the Small Busi11 ness Act (15 U.S.C. 636(a)) to covered 

12 nonprofit child care providers; 

13 (ii) the amount of the loans and 

14 financings described in clause (i); 

15 (iii) the number of loans and 

16 financings provided under title V of the 

17 Small Business Investment Act of 1958 

18 (15 U.S.C. 695 et seq.) to covered non19 profit child care providers; and 

20 (iv) the amount of the loans and 

21 financings described in clause (iii); and 

22 (B) any other information determined rel23 evant by the Administrator. 

Æ 


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