I 
119TH CONGRESS 
2D SESSION 
H. R. 7109 
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 
JANUARY 15, 2026 
Ms. 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) BUSINESS LOAN PROGRAM.—Section 3(a) of the 
Small Business 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 
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for purposes of loans and financings under 
section 7(a). 
‘‘(ii) PROHIBITION ON DIRECT LEND-
ING.—A loan or financing to a covered 
nonprofit child care provider made under 
the authority under clause (i) shall be 
made in cooperation with banks, certified 
development companies, or other financial 
institutions through agreements to partici-
pate on a deferred basis. The Adminis-
trator is prohibited from making a direct 
loan or financing or entering an agreement 
to participate on an immediate basis for a 
loan or financing made to a covered non-
profit child care provider under the author-
ity under clause (i). 
‘‘(iii) LOAN GUARANTEE.—A covered 
nonprofit child care provider shall obtain a 
guarantee of timely payment of the loan or 
financing from another person or entity to 
be eligible for such loan or financing of 
more than $500,000 under the authority 
under clause (i). 
‘‘(C) 
LIMITATION.—The 
Administrator 
may not determine that a covered nonprofit 
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child care provider is not eligible for a loan or 
financing described in subparagraph (B)(i) on 
the basis that the covered nonprofit child care 
provider is associated with an entity whose ac-
tivities are protected under the First Amend-
ment to the Constitution of the United States, 
as interpreted by the courts of the United 
States.’’. 
(b) 504 PROGRAM.—Section 502 of the Small Busi-
ness Investment Act of 1958 (15 U.S.C. 696) is amend-
ed— 
(1) in the matter preceding paragraph (1), by 
striking ‘‘The Administration’’ and inserting the fol-
lowing: 
‘‘(a) IN GENERAL.—The Administration’’; and 
(2) by adding at the end the following: 
‘‘(b) NONPROFIT CHILD CARE PROVIDERS.— 
‘‘(1) DEFINITION.—In this subsection, the term 
‘covered nonprofit child care provider’ has the mean-
ing given that term in section 3(a)(10) of the Small 
Business Act (15 U.S.C. 632(a)(10)). 
‘‘(2) ELIGIBILITY
FOR
CERTAIN
LOAN
PRO-
GRAMS.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of this title, a covered nonprofit 
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child care provider shall be deemed to be a 
small business concern for purposes of loans 
and financings under this title. 
‘‘(B) PROHIBITION
ON
DIRECT
LEND-
ING.—A loan or financing to a covered non-
profit child care provider made under the au-
thority under subparagraph (A) shall be made 
in cooperation with banks, certified development 
companies, 
or 
other 
financial 
institutions 
through agreements to participate on a deferred 
basis. The Administrator is prohibited from 
making a direct loan or financing or entering 
an agreement to participate on an immediate 
basis for a loan or financing made to a covered 
nonprofit child care provider under the author-
ity under subparagraph (A). 
‘‘(C) LOAN GUARANTEE.—A covered non-
profit child care provider shall obtain a guar-
antee of timely payment of the loan or financ-
ing from another person or entity to be eligible 
for such loan or financing of more than 
$500,000 under the authority under subpara-
graph (A). 
‘‘(3) LIMITATION.—The Administrator may not 
determine that a covered nonprofit child care pro-
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vider is not eligible for a loan or financing described 
in paragraph (2)(A) on the basis that the covered 
nonprofit child care provider is associated with an 
entity whose activities are protected under the First 
Amendment to the Constitution of the United 
States, as interpreted by the courts of the United 
States.’’. 
(c) 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 and financings 
made under section 7(a) of the Small Busi-
ness Act (15 U.S.C. 636(a)) to covered 
nonprofit child care providers; 
(ii) the amount of the loans and 
financings described in clause (i); 
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(iii) 
the 
number 
of 
loans 
and 
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 
(iv) the amount of the loans and 
financings described in clause (iii); and 
(B) any other information determined rel-
evant by the Administrator. 
Æ 
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