A bill to create a 3-year pilot program that makes small, non-profit child care businesses eligible for SBA 504 loans.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Child Care Lending Pilot Act of 
2003''.

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 inserting 
                ``. Such loans'';
                    (C) by striking ``: Provided, however, That the 
                foregoing powers shall be subject to the following 
                restrictions and limitations:'' and inserting a period; 
                and
                    (D) by adding at the end the following:
    ``(b) Restrictions and Limitations.--The authority under subsection 
(a) shall be subject to the following restrictions and limitations:''; 
and
            (2) in paragraph (1)--
                    (A) by inserting after ``Use of proceeds.--'' 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 
                        financial 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 Business Administration shall submit a 
                report on the implementation of the program under 
                subsection (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 subparagraph (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, approved, 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 subparagraph (A) 
                shall contain information gathered during the first 2 
                years of the loan program, 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 businesses 
                                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 Administrator 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 period 
beginning on the date of enactment of this Act and ending on September 
30, 2006.

Summary: Child Care Lending Pilot Act of 2003 - Amends the Small Business Investment Act of 1958 to allow the proceeds of loans made through the Small Business Administration (SBA) to local development companies for plant acquisition, construction, or expansion to be used to assist small, nonprofit child care businesses, provided that: (1) the loan will be used for a sound business purpose approved by the SBA; and (2) each business receiving the assistance meets eligibility requirements applicable to for-profit businesses.