I 118th CONGRESS 1st Session H. R. 2602 IN THE HOUSE OF REPRESENTATIVES April 13, 2023 Mrs. 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 Administration, and for other purposes.

1. Short title This Act may be cited as the Small Business Child Care Investment Act . 2. Small business loans for nonprofit child care providers (a) In general Section 3(a) of the Small Business Act ( 15 U.S.C. 632(a) ) is amended by adding at the end the following: (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 licensing requirements for child care providers of the State in which the organization 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 regular volunteer complies with the criminal background check requirements under section 658H(b) of the Child Care and Development 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 prekindergarten 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 services to the public, on the basis of race, color, religion, sex, sexual orientation, marital status, age, disability, or national origin. (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 for purposes of loans under section 7(a) of this Act or financing under title V of the Small Business Investment Act of 1958 ( 15 U.S.C. 695 et seq. ). (ii) Loan guarantee A covered nonprofit child care center provider— (I) shall obtain a guarantee of timely payment of the loan or financing from another person or entity to be eligible for a loan or financing of more than $500,000 under the authority under clause (i); and (II) shall not be required to obtain a guarantee of timely payment of the loan or financing to be eligible for a loan or financing that is not more than $500,000 under the authority under clause (i). (C) Limitation on basis for ineligibility The Administrator may not determine that a covered nonprofit child care center provider is not eligible for a loan or financing described in subparagraph (B)(i) on the basis that the proceeds of the loan or financing will be used for a religious activity protected under the First Amendment to the Constitution of the United States, as interpreted by the courts of the United States. . (b) 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 made under section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ) and the number of financings provided under title V of the Small Business Investment Act of 1958 ( 15 U.S.C. 695 et seq. ) to covered nonprofit child care providers; and (ii) the amount of such loans made and the amount of such financings provided to covered nonprofit child care providers; and (B) any other information determined relevant by the Administrator.