I 

118TH CONGRESS 

1ST SESSION H. R. 2602 

To allow nonprofit child care providers to participate in certain loan programs 

of the Small Business Administration, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 13, 2023 

Mrs. LEE of Nevada (for herself and Mr. STAUBER) introduced the following 

bill; which was referred to the Committee on Small Business 

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’’. 

6 SEC. 2. SMALL BUSINESS LOANS FOR NONPROFIT CHILD 

7 CARE PROVIDERS. 

8 (a) IN GENERAL.—Section 3(a) of the Small Busi9 ness Act (15 U.S.C. 632(a)) is amended by adding at the 

10 end the following: 


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

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

3 term ‘covered nonprofit child care provider’ 

4 means an organization— 

5 ‘‘(i) that— 

6 ‘‘(I) is in compliance with licens7 ing requirements for child care pro8 viders of the State in which the orga9 nization is located; 

10 ‘‘(II) is described in section 

11 501(c)(3) of the Internal Revenue 

12 Code of 1986 and exempt from tax 

13 under section 501(a) of such Code; 

14 ‘‘(III) is primarily engaged in 

15 providing child care for children from 

16 birth to compulsory school age; and 

17 ‘‘(IV) is in compliance with the 

18 size standards established under this 

19 subsection for business concerns in 

20 the applicable industry; 

21 ‘‘(ii) for which each employee and reg22 ular volunteer complies with the criminal 

23 background check requirements under sec24 tion 658H(b) of the Child Care and DevelVerDate Sep 11 2014 02:58 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2602.IH H2602

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1 opment Block Grant Act of 1990 (42 

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

3 ‘‘(iii) that may— 

4 ‘‘(I) provide care for school-age 

5 children outside of school hours or 

6 outside of the school year; or 

7 ‘‘(II) offer preschool or pre8 kindergarten educational programs; 

9 and 

10 ‘‘(iv) subject to any exemption under 

11 Federal law applicable to the organization, 

12 that certifies to the Administrator that the 

13 organization will not discriminate in any 

14 business practice, including providing serv15 ices to the public, on the basis of race, 

16 color, religion, sex, sexual orientation, mar17 ital status, age, disability, or national ori18 gin. 

19 ‘‘(B) ELIGIBILITY FOR CERTAIN LOAN

20 PROGRAMS.— 

21 ‘‘(i) IN GENERAL.—Notwithstanding 

22 any other provision of this subsection, a 

23 covered nonprofit child care provider shall 

24 be deemed to be a small business concern 

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


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1 this Act or financing under title V of the 

2 Small Business Investment Act of 1958 

3 (15 U.S.C. 695 et seq.). 

4 ‘‘(ii) LOAN GUARANTEE.—A covered 

5 nonprofit child care center provider— 

6 ‘‘(I) shall obtain a guarantee of 

7 timely payment of the loan or financ8 ing from another person or entity to 

9 be eligible for a loan or financing of 

10 more than $500,000 under the au11 thority under clause (i); and 

12 ‘‘(II) shall not be required to ob13 tain a guarantee of timely payment of 

14 the loan or financing to be eligible for 

15 a loan or financing that is not more 

16 than $500,000 under the authority 

17 under clause (i). 

18 ‘‘(C) LIMITATION ON BASIS FOR INELIGI19 BILITY.—The Administrator may not determine 

20 that a covered nonprofit child care center pro21 vider is not eligible for a loan or financing de22 scribed in subparagraph (B)(i) on the basis that 

23 the proceeds of the loan or financing will be 

24 used for a religious activity protected under the 

25 First Amendment to the Constitution of the 


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1 United States, as interpreted by the courts of 

2 the United States.’’. 

3 (b) REPORTING.— 

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

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

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

7 3(a) of the Small Business Act (15 U.S.C. 632(a)), 

8 as added by subsection (a). 

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

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

11 thereafter, the Administrator of the Small Business 

12 Administration shall submit to Congress a report 

13 that contains— 

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

15 (i) the number of loans made under 

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

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

18 financings provided under title V of the 

19 Small Business Investment Act of 1958 

20 (15 U.S.C. 695 et seq.) to covered non21 profit child care providers; and 

22 (ii) the amount of such loans made 

23 and the amount of such financings pro24 vided to covered nonprofit child care pro25 viders; and 


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1 (B) any other information determined rel2 evant by the Administrator. 

Æ 


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