I 
109TH CONGRESS 
2D SESSION 
H. R. 6393 
To establish a temporary program under which emergency loans are made 
to small businesses that are nonprofit child care businesses. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 6, 2006 
Mr. JEFFERSON introduced the following bill; which was referred to the 
Committee on Small Business 
A BILL 
To establish a temporary program under which emergency 
loans are made to small businesses that are nonprofit 
child care businesses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Emergency Child Care 
Lending for the Gulf Coast Act of 2006’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) The Census reported pre-Katrina that there 
were— 
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(A) 25,000 two-parent families in New Or-
leans with children under 18; 
(B) 26,000 female householders with chil-
dren under 18, and no husband present; and 
(C) more than 18,000 householders who 
were more than 65 years old and living alone. 
(2) Studies have stated that reopening child 
care facilities was crucial for helping parents get 
back to work and businesses to recover. 
(3) Studies have shown that without available 
and affordable child care economic recovery will be 
greatly impeded and lead to a reduction in worker 
productivity. 
(4) In New Orleans before the Hurricanes 
Katrina and Rita, the city had 1,912 day-care slots 
at 266 licensed centers, but now 80 percent of those 
centers and 75 percent of those slots are gone. 
(5) The National Association of Child Care Re-
source and Referral Agencies, reported in a study 
published by the Mississippi State University Early 
Childhood Institute that between 62 percent to 94 
percent of the licensed child care slots in the three 
coastal counties hardest hit by Hurricanes Katrina 
and Rita in Mississippi were lost. 
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(6) In Jackson County, Mississippi, initial as-
sessment found that one-fourth of the county’s li-
censed centers were damaged beyond repair, rep-
resenting 11 percent of the county’s licensed child 
care capacity and another 39 percent of centers 
needed repairs. 
(7) Studies have stated the most effective way 
to rebuild the child care infrastructure is to— 
(A) help child care programs in the dis-
aster area reopen as rapidly as was safe by giv-
ing priority to licensed early childhood facilities; 
and 
(B) recruit, train, and retain child-care 
professionals. 
SEC. 3. EMERGENCY CHILD CARE LENDING PILOT PRO-
GRAM. 
(a) LOANS AUTHORIZED.—Notwithstanding section 
502(1) of the Small Business Investment Act of 1958, the 
proceeds of any loan described in section 502 of such Act 
may be used by the certified development company to pro-
vide loans to small, nonprofit child care businesses, pro-
vided that— 
(1) the loan will be used for a sound business 
purpose that has been approved by the Adminis-
trator of the Small Business Administration (here-
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after in this section referred to as the Adminis-
trator); 
(2) each such business meets the eligibility re-
quirements applicable to for-profit businesses receiv-
ing a similar loan, except for status as a for-profit 
business; 
(3) 1 or more individuals have personally guar-
anteed the loan; 
(4) the small, non-profit child care business has 
clear and singular title to the collateral for the loan; 
(5) the small, non-profit child care business has 
supplied sufficient information supporting the ability 
to obtain future cash flow from its operations to 
meet its obligations on the loan and its normal and 
reasonable operating expenses; and 
(6) have a track record of providing child care 
services in the presidentially declared disaster areas 
in the Gulf Coast region. 
(b) LIMITATION ON VOLUME.—Not more than 3 per-
cent of the total number of loans guaranteed in fiscal year 
2007, and 2008 under title V of the Small Business In-
vestment Act of 1958 may be awarded under the program 
described in this section. 
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(c) SMALL, NON-PROFIT CHILD CARE BUSINESS.— 
For purposes of this section, the term ‘‘small, non-profit 
child care business’’ means an organization that— 
(1) is described in section 501(c)(3) of the In-
ternal Revenue Code of 1986 and exempt from tax 
under section 501(a) of such Code; 
(2) is primarily engaged in providing child care 
for infants, toddlers, pre-school, or pre-kindergarten 
children (or any combination thereof), may provide 
care for older children when they are not in school, 
and may offer pre-kindergarten educational pro-
grams; 
(3) including its affiliates, has tangible net 
worth that does not exceed $7,000,000, and has av-
erage net income (excluding any carryover losses) for 
the preceding 2 completed fiscal years that does not 
exceed $2,500,000; and 
(4) is licensed as a child care provider by the 
District of Columbia, the insular area, or the State, 
in which it is located. 
(d) TERMINATION.—No loan shall be made under 
this section after December 30, 2007. 
(e) REPORTS.— 
(1) SMALL
BUSINESS
ADMINISTRATION.—Not 
later than 3 months after the date of the enactment 
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of this Act, and every 3 months thereafter until Sep-
tember 30, 2008, the Administrator shall submit a 
report to the Committee on Small Business and En-
trepreneurship of the Senate and the Committee on 
Small Business of the House of Representatives re-
garding the implementation of the loan program de-
scribed in this section. Each such report shall in-
clude— 
(A) the date on which the loan program is 
implemented; 
(B) the date on which the rules are issued 
pursuant to subsection (f); 
(C) the number and dollar amount of loans 
under the program; applied for, approved, and 
disbursed during the previous 3 months; and 
(D) number of loans made to minority- 
owned firms and to woman-owned firms. 
(2) GENERAL ACCOUNTING OFFICE.—Not later 
than March 31, 2008, the Comptroller General of 
the United States shall submit a report to the Com-
mittee on Small Business and Entrepreneurship of 
the Senate and the Committee on Small Business of 
the House of Representatives regarding the assist-
ance provided under the loan program established by 
this section. Such report shall include information 
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regarding the first 2 years of the loan program, in-
cluding— 
(A) an evaluation of the timeliness of the 
implementation of the loan program; 
(B) a description of the effectiveness and 
ease with which certified development compa-
nies, lenders, and small businesses have partici-
pated in the loan program; 
(C) a description and assessment of how 
the loan program was marketed; 
(D) by location in total, the number of 
small, nonprofit child care businesses that— 
(i) applied for loans under the pro-
gram (stated separately for new and ex-
panding child care providers); and 
(ii) received loan disbursements under 
the program (stated separately for new 
and expanding child care providers); 
(E) the total amount loaned to such busi-
nesses under the program; 
(F) the total number of loans made to 
such businesses under the program; 
(G) the average loan amount and term of 
loans made under the program; 
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(H) the currency rate, delinquencies, de-
faults, and losses of the loans made under the 
program; 
(I) the number and percent of children 
served through the program who receive sub-
sidized assistance; and 
(J) the number and percent of children 
served through the program who are minority 
or low-income. 
(3) ACCESS TO INFORMATION.— 
(A) 
COLLECTION.—The 
Administrator 
shall collect and maintain such information as 
may be necessary to carry out paragraph (2) 
from certified development centers and child 
care providers, and such centers and providers 
shall comply with a request for information 
from the Administrator for that purpose. 
(B) PROVISION
OF
INFORMATION
TO 
GAO.—The Administrator shall provide informa-
tion collected under subparagraph (A) to the 
Comptroller General of the United States for 
purposes of the report required by paragraph 
(2). 
(f) RULEMAKING AUTHORITY.—Not later than 60 
days after the date of the enactment of this Act, the Ad-
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ministrator shall issue final rules to carry out the loan 
program authorized by this section. 
Æ 
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