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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 273 Introduced in Senate (IS)]

<DOC>

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Child Care Investment 
Act''.

SEC. 2. SMALL BUSINESS LOANS FOR NONPROFIT CHILD CARE PROVIDERS.

    (a) Business Loan Program.--Section 3(a) of the Small Business Act 
(15 U.S.C. 632(a)) is amended by adding at the end the following:
            ``(10) Nonprofit child care providers.--
                    ``(A) Definition.--In this paragraph, the term 
                `covered nonprofit child care provider' means an 
                organization--
                            ``(i) that--
                                    ``(I) is in compliance with 
                                licensing requirements for child care 
                                providers of the State in which the 
                                organization is located;
                                    ``(II) 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;
                                    ``(III) is primarily engaged in 
                                providing child care for children from 
                                birth to compulsory school age; and
                                    ``(IV) is in compliance with the 
                                size standards established under this 
                                subsection for business concerns in the 
                                applicable industry;
                            ``(ii) for which each employee and regular 
                        volunteer complies with the criminal background 
                        check requirements under section 658H(b) of the 
                        Child Care and Development Block Grant Act of 
                        1990 (42 U.S.C. 9858f(b));
                            ``(iii) that may--
                                    ``(I) provide care for school-age 
                                children outside of school hours or 
                                outside of the school year; or
                                    ``(II) offer preschool or 
                                prekindergarten educational programs; 
                                and
                            ``(iv) subject to any exemption under 
                        Federal law applicable to the organization, 
                        that certifies to the Administrator that the 
                        organization will not discriminate in any 
                        business practice, including providing services 
                        to the public, on the basis of race, color, 
                        religion, sex, sexual orientation, marital 
                        status, age, disability, or national origin.
                    ``(B) Eligibility for certain loan programs.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of this subsection, a covered 
                        nonprofit child care provider shall be deemed 
                        to be a small business concern for purposes of 
                        loans and financings under section 7(a).
                            ``(ii) Prohibition on direct lending.--A 
                        loan or financing to a covered nonprofit child 
                        care provider made under the authority under 
                        clause (i) shall be made in cooperation with 
                        banks, certified development companies, or 
                        other financial institutions through agreements 
                        to participate on a deferred (guaranteed) 
                        basis. The Administrator is prohibited from 
                        making a direct loan or financing or entering 
                        an agreement to participate on an immediate 
                        basis for a loan or financing made to a covered 
                        nonprofit child care provider under the 
                        authority under clause (i).
                            ``(iii) Loan guarantee.--A covered 
                        nonprofit child care provider--
                                    ``(I) shall obtain a guarantee of 
                                timely payment of the loan or financing 
                                from another person or entity to be 
                                eligible for such loan or financing of 
                                more than $500,000 under the authority 
                                under clause (i); and
                                    ``(II) may not be required to 
                                obtain a guarantee of timely payment of 
                                the loan or financing to be eligible 
                                for such loan or financing that is not 
                                more than $500,000 under the authority 
                                under clause (i).
                    ``(C) Limitations.--
                            ``(i) Basis for ineligibility.--The 
                        Administrator may not determine that a covered 
                        nonprofit child care provider is not eligible 
                        for a loan or financing described in 
                        subparagraph (B)(i) on the basis that the 
                        covered nonprofit child care provider is 
                        associated with an entity whose activities are 
                        protected under the First Amendment to the 
                        Constitution of the United States, as 
                        interpreted by the courts of the United States.
                            ``(ii) Use of funds.--A covered nonprofit 
                        child care provider receiving a loan or 
                        financing described in subparagraph (B)(i) may 
                        not use the proceeds of the loan or financing 
                        for a religious activity protected under the 
                        First Amendment to the Constitution of the 
                        United States, as interpreted by the courts of 
                        the United States.''.
    (b) 504 Program.--Section 502 of the Small Business Investment Act 
of 1958 (15 U.S.C. 696) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``The Administration'' and inserting the following:
    ``(a) In General.--The Administration''; and
            (2) by adding at the end the following:
    ``(b) Nonprofit Child Care Providers.--
            ``(1) Definition.--In this subsection, the term `covered 
        nonprofit child care provider' has the meaning given that term 
        in section 3(a)(10) of the Small Business Act (15 U.S.C. 
        636(a)(10)).
            ``(2) Eligibility for certain loan programs.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this title, a covered nonprofit child care 
                provider shall be deemed to be a small business concern 
                for purposes of loans and financings under this title.
                    ``(B) Prohibition on direct lending.--A loan or 
                financing to a covered nonprofit child care provider 
                made under the authority under subparagraph (A) shall 
                be made in cooperation with banks, certified 
                development companies, or other financial institutions 
                through agreements to participate on a deferred 
                (guaranteed) basis. The Administrator is prohibited 
                from making a direct loan or financing or entering an 
                agreement to participate on an immediate basis for a 
                loan or financing made to a covered nonprofit child 
                care provider under the authority under subparagraph 
                (A).
                    ``(C) Loan guarantee.--A covered nonprofit child 
                care provider--
                            ``(i) shall obtain a guarantee of timely 
                        payment of the loan or financing from another 
                        person or entity to be eligible for such loan 
                        or financing of more than $500,000 under the 
                        authority under subparagraph (A); and
                            ``(ii) may not be required to obtain a 
                        guarantee of timely payment of the loan or 
                        financing to be eligible for such loan or 
                        financing that is not more than $500,000 under 
                        the authority under subparagraph (A).
            ``(3) Limitations.--
                    ``(A) Basis for ineligibility.--The Administrator 
                may not determine that a covered nonprofit child care 
                provider is not eligible for a loan or financing 
                described in paragraph (2)(A) on the basis that the 
                covered nonprofit child care provider is associated 
                with an entity whose activities are protected under the 
                First Amendment to the Constitution of the United 
                States, as interpreted by the courts of the United 
                States.
                    ``(B) Use of funds.--A covered nonprofit child care 
                provider receiving a loan or financing described in 
                paragraph (2)(A) may not use the proceeds of the loan 
                or financing for a religious activity protected under 
                the First Amendment to the Constitution of the United 
                States, as interpreted by the courts of the United 
                States.''.
    (c) Reporting.--
            (1) Definition.--In this subsection, the term ``covered 
        nonprofit child care provider'' has the meaning given the term 
        in paragraph (10) of section 3(a) of the Small Business Act (15 
        U.S.C. 632(a)), as added by subsection (a).
            (2) Requirement.--Not later than 1 year after the date of 
        enactment of this Act, and annually thereafter, the 
        Administrator of the Small Business Administration shall submit 
        to Congress a report that contains--
                    (A) for the year covered by the report--
                            (i) the number of loans and financings made 
                        under section 7(a) of the Small Business Act 
                        (15 U.S.C. 636(a)) to covered nonprofit child 
                        care providers;
                            (ii) the amount of the loans and financings 
                        described in clause (i);
                            (iii) the number of loans and financings 
                        provided under title V of the Small Business 
                        Investment Act of 1958 (15 U.S.C. 695 et seq.) 
                        to covered nonprofit child care providers; and
                            (iv) the amount of the loans and financings 
                        described in clause (iii); and
                    (B) any other information determined relevant by 
                the Administrator.
                                 <all>
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