Parents need quality child care that doesn't break the family bank account. Although the demand for child care is increasing, the supply of child care facilities is shrinking. Private financial institutions are reluctant to lend money to small business owners who want to open or rehabilitate a child care facility.
Lenders believe that high legal liability makes child care facilities a poor credit risk.
This is a situation that should not be allowed to persist. I believe that an innovative and cost-effective program that I am supporting may be part of the answer. H.R. 3637, the Child Development Commission Act would establish a guaranteed loan program, known as Kiddie Mac, which will open the doors of more child care facilities. Kiddie Mac would be administered by the U.S. Department of Housing and Urban Development. Financial institutions that lend money for building and rehabilitating child care facilities would purchase government insurance that guarantees loan repayment.