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 Administra-
tion, and for other purposes. 
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 ‘‘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 Busi-
ness Act (15 U.S.C. 632(a)) is amended by adding at the 
end the following: 
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‘‘(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 licens-
ing requirements for child care pro-
viders of the State in which the orga-
nization 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 reg-
ular volunteer complies with the criminal 
background check requirements under sec-
tion 658H(b) of the Child Care and Devel-
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opment 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 pre-
kindergarten 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 serv-
ices to the public, on the basis of race, 
color, religion, sex, sexual orientation, mar-
ital status, age, disability, or national ori-
gin. 
‘‘(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 
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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 financ-
ing from another person or entity to 
be eligible for a loan or financing of 
more than $500,000 under the au-
thority under clause (i); and 
‘‘(II) shall not be required to ob-
tain 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 INELIGI-
BILITY.—The Administrator may not determine 
that a covered nonprofit child care center pro-
vider is not eligible for a loan or financing de-
scribed 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 
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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 non-
profit child care providers; and 
(ii) the amount of such loans made 
and the amount of such financings pro-
vided to covered nonprofit child care pro-
viders; and 
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(B) any other information determined rel-
evant by the Administrator. 
Æ 
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