I 
107TH CONGRESS 
2D SESSION 
H. R. 5749
To create a 4-year pilot program that makes small, non-profit child care 
businesses eligible for SBA 504 loans. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 14, 2002
Mr. MEEHAN introduced the following bill; which was referred to the 
Committee on Small Business 
A BILL 
To create a 4-year pilot program that makes small, non-
profit child care businesses eligible for SBA 504 loans.
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 ‘‘Child Care Lending 
Pilot Act’’. 
SEC. 2. CHILD CARE BUSINESS LOAN PROGRAM. 
(a) LOANS AUTHORIZED.—Section 502 of the Small 
Business Investment Act of 1958 (15 U.S.C. 696) is 
amended—
(1) in the matter preceding paragraph (1)—
(A) by striking ‘‘The Administration’’ and 
inserting the following: 
‘‘(a) AUTHORIZATION.—The Administration’’; 
(B) by striking ‘‘and such loans’’ and in-
serting ‘‘. Such loans’’; and 
(C) by striking ‘‘: Provided, however, That 
the foregoing powers shall be subject to the fol-
lowing restrictions and limitations:’’ and insert-
ing a period; and 
(D) by adding at the end the following: 
‘‘(b) RESTRICTIONS AND LIMITATIONS.—The author-
ity under subsection (a) shall be subject to the following 
restrictions and limitations:’’; and 
(2) in paragraph (1)—
(A) by inserting after ‘‘USE
OF
PRO-
CEEDS.—’’ the following: 
‘‘(A) IN GENERAL.—’’; and 
(B) by adding at the end the following: 
‘‘(B) LOANS
TO
SMALL, 
NON-PROFIT 
CHILD
CARE
BUSINESSES.—The proceeds of 
any loan described in subsection (a) may be 
used by the borrower to assist, in addition to 
other eligible small business concerns, small, 
non-profit 
child 
care 
businesses, 
provided 
that—
‘‘(i) the loan will be used for a sound 
business purpose that has been approved 
by the Administration; and 
‘‘(ii) each such business receiving fi-
nancial assistance meets all of the same 
eligibility requirements applicable to for-
profit businesses under this title, except 
for status as a for-profit business.’’. 
(b) REPORTS.—
(1) SMALL BUSINESS ADMINISTRATION.—
(A) IN
GENERAL.—Not later than 6 
months after the date of enactment of this Act, 
and every 6 months thereafter until September 
30, 2006, the Administrator of the Small Busi-
ness Administration shall submit a report on 
the implementation of the program under sub-
section (a) to—
(i) the Committee on Small Business 
and Entrepreneurship of the Senate; and 
(ii) the Committee on Small Business 
of the House of Representatives. 
(B) CONTENTS.—The report under sub-
paragraph (A) shall contain—
(i) the date on which the program is 
implemented;
(ii) the date on which the rules are 
issued pursuant to subsection (c); and 
(iii) the number and dollar amount of 
loans under the program applied for, ap-
proved, and disbursed during the previous 
6 months. 
(2) GENERAL ACCOUNTING OFFICE.—
(A) IN GENERAL.—Not later than March 
31, 2006, the Comptroller General of the 
United States shall submit a report on the child 
care small business loans authorized by section 
502(b)(1)(B) of the Small Business Investment 
Act of 1958, as added by this Act, to—
(i) the Committee on Small Business 
and Entrepreneurship of the Senate; and 
(ii) the Committee on Small Business 
of the House of Representatives. 
(B) CONTENTS.—The report under sub-
paragraph (A) shall contain information gath-
ered during the first 2 years of the loan pro-
gram, including—
(i) an evaluation of the timeliness of 
the implementation of the loan program; 
(ii) a description of the effectiveness 
and ease with which Certified Development
Companies, lenders, and small businesses 
have participated in the loan program; 
(iii) a description and assessment of 
how the loan program was marketed; 
(iv) the number of child care small 
businesses, categorized by status as a for-
profit or non-profit business and a new 
business or an expanded business, that—
(I) applied for loans under the 
program; 
(II) were approved for loans 
under the program; and 
(III) received loan disbursements 
under the program. 
(v) of the businesses under clause 
(iv)(III)—
(I) the number of such busi-
nesses in each State; 
(II) the total amount loaned to 
such businesses under the program; 
and 
(III) the average loan amount 
and term. 
(c) RULEMAKING AUTHORITY.—Not later than 120 
days after the date of enactment of this Act, the Adminis-
trator of the Small Business Administration shall issue 
final rules to carry out the loan program authorized by 
section 502(b)(1)(B) of the Small Business Investment 
Act of 1958, as added by this Act. 
(d) SUNSET PROVISION.—The amendments made by 
this section shall remain in effect until September 30, 
2006, and shall apply to all loans authorized by section 
502(b)(1)(B) of the Small Business Investment Act of 
1958, as added by this Act, that are made during the pe-
riod beginning on the date of enactment of this Act and 
ending on September 30, 2006.
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