I 
108TH CONGRESS 
1ST SESSION H. R. 3099
To amend the Small Business Investment Act of 1958 to establish a pilot 
program for lending to small, nonprofit child care businesses. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 16, 2003
Ms. MILLENDER-MCDONALD (for herself, Mr. CONYERS, Mr. TOWNS, Mrs. 
CHRISTENSEN, Ms. LEE, Mr. CUMMINGS, Ms. KILPATRICK, Ms. CARSON 
of Indiana, Ms. CORRINE BROWN of Florida, Mr. SCOTT of Virginia, Mr. 
FROST, Mr. PAYNE, Mr. CLAY, Mr. MEEHAN, Mrs. JONES of Ohio, Ms. 
JACKSON-LEE of Texas, Mr. THOMPSON of Mississippi, Ms. NORTON, Mr. 
FRANK of Massachusetts, Mr. TIERNEY, Mr. ENGEL, Mr. WYNN, Mr. 
LYNCH, Mr. OLVER, Mr. MARKEY, Mr. NEAL of Massachusetts, Mr. 
MCGOVERN, Mr. BALLANCE, Mr. SERRANO, Ms. MCCOLLUM, and Mr. 
CAPUANO) introduced the following bill; which was referred to the Com-
mittee on Small Business 
A BILL 
To amend the Small Business Investment Act of 1958 to 
establish a pilot program for lending to small, 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 ‘‘Child Care Lending 
Pilot Act of 2003’’.
SEC. 2. CHILD CARE LENDING PILOT PROGRAM. 
(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-
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; 
and 
(5) the small, non-profit child care business has 
sufficient cash flow from its operations to meet its 
obligations on the loan and its normal and reason-
able operating expenses.
(b) LIMITATION ON VOLUME.—Not more than 7 per-
cent of the total number of loans guaranteed in any fiscal 
year under title V of the Small Business Investment Act 
of 1958 may be awarded under the program described in 
this section. 
(c) SMALL, NONPROFIT 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.
(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; 
(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 low in-
come. 
(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 120 
days after the date of the enactment of this Act, the Ad-
ministrator shall issue final rules to carry out the loan 
program authorized by this section.
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