(ii) providing technical and financial 
assistance to child care providers or other 
similar entities; 
(iii) working with businesses (whether 
small or large); and 
(iv) securing private sources for cap-
ital financing; and 
(3) ELIGIBLE RECIPIENT.—The term ‘‘eligible 
recipient’’ means any— 
(A) existing or start-up center-based or 
home-based child care provider; and 
(B) organization in the process of estab-
lishing a center-based or home-based child care 
program or otherwise seeking to provide child 
care services. 
(4) EQUIPMENT.—The term ‘‘equipment’’ has 
the meaning given that term in section 257(a) of the 
National Housing Act, as added by section 3 of this 
Act. 
(b) GRANT AUTHORITY.—The Secretary of Housing 
and Urban Development, in consultation with the Sec-
retary of Health and Human Services, may award grants 
on a competitive basis in accordance with this section to 
eligible intermediaries for use in accordance with sub-
sections (e) and (f). 
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(c) APPLICATIONS.—To be eligible to receive a grant 
under this section an eligible intermediary shall submit to 
the Secretary an application, in such form and containing 
such information as the Secretary may require. 
(d) PRIORITY.— In awarding grants under this sec-
tion the Secretary shall give a priority to applicants under 
subsection (c) that serve low-income or rural areas. 
(e) USE OF FUNDS.— 
(1) REVOLVING
LOAN
FUND.—Each eligible 
intermediary that receives a grant under this section 
shall deposit the grant amount into a child care re-
volving loan fund established by the eligible inter-
mediary. 
(2) ELIGIBLE
ASSISTANCE.—Subject to sub-
section (f), from amounts deposited into the revolv-
ing loan fund under paragraph (1), each eligible 
intermediary shall provide to eligible recipients— 
(A) financial assistance (in the form of 
loans, grants, investments, guarantees, interest 
subsidies, and other appropriate forms of assist-
ance) for the construction of new child care fa-
cilities located in an area for which the Presi-
dent declared that a major disaster exists, in 
accordance with section 401 of the Robert T. 
Stafford Disaster Relief and Emergency Assist-
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ance Act (42 U.S.C. 5170), as a consequence of 
Hurricane Katrina or Rita of 2005, for plan-
ning of such child care facilities, and for acqui-
sition or improvement of such child care facili-
ties or equipment for such child care facilities; 
and 
(B) technical assistance in obtaining public 
or private financing for such construction, plan-
ning, acquisition, and improvement of such 
child care facilities, including developing and 
implementing financing resources, options, and 
plans for such eligible recipients. 
(3) LOAN REPAYMENTS AND INVESTMENT PRO-
CEEDS.—Any amount received by an eligible inter-
mediary from an eligible recipient in the form of 
loan principal repayment or investment proceeds 
shall be deposited into the child care revolving fund 
of the eligible intermediary for redistribution to 
other eligible recipients in accordance with this sec-
tion. 
(f) ALLOCATION OF FUNDS.—Of the amounts dis-
tributed from the revolving loan fund of an eligible inter-
mediary under subsection (e)(2) in each fiscal year— 
(1) not less than 50 percent shall be used for 
financial assistance pursuant to subparagraph (A) of 
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subsection (e)(2), except that the amount made 
available to any eligible recipient under this para-
graph may not exceed 40 percent of the total costs 
incurred by that eligible recipient in connection with 
the construction, planning, acquisition, or improve-
ment assisted; and 
(2) the amount remaining after distribution 
under paragraph (1), shall be used to provide tech-
nical assistance pursuant to subparagraph (B) of 
subsection (e)(2). 
(g) DAVIS BACON ACT.—The Act of March 3, 1931 
(popularly known as the Davis-Bacon Act) shall apply to 
actions taken under this Act. 
(h) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$1,000,000 for each of fiscal years 2006 through 2008. 
Æ 
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