Small Business Child Care Investment Act

Subjects: Commerce


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 673 Introduced in Senate (IS)]

&lt;DOC&gt;






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, and Mr. Rubio) 
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) In General.--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 under section 7(a) of this Act or 
                        financing under title V of the Small Business 
                        Investment Act of 1958 (15 U.S.C. 695 et seq.).
                            ``(ii) Loan guarantee.--A covered nonprofit 
                        child care center provider--
                                    ``(I) shall obtain a guarantee of 
                                timely payment of the loan or financing 
                                from another person or entity to be 
                                eligible for a loan or financing of 
                                more than $500,000 under the authority 
                                under clause (i); and
                                    ``(II) shall not be required to 
                                obtain a guarantee of timely payment of 
                                the loan or financing to be eligible 
                                for a loan or financing that is not 
                                more than $500,000 under the authority 
                                under clause (i).
                    ``(C) Limitation on basis for ineligibility.--The 
                Administrator may not determine that a covered 
                nonprofit child care center provider is not eligible 
                for a loan or financing described in subparagraph 
                (B)(i) on the basis that the proceeds of the loan or 
                financing will be used 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) 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 made under section 
                        7(a) of the Small Business Act (15 U.S.C. 
                        636(a)) and the number of 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
                            (ii) the amount of such loans made and the 
                        amount of such financings provided to covered 
                        nonprofit child care providers; and
                    (B) any other information determined relevant by 
                the Administrator.
                                 &lt;all&gt;
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