Child Care for Small Businesses Act

Bill: 118-hr-10115
Sponsor: full_name: Rep. Landsman, Greg [D-OH-1]
Introduced: 2024-11-12
Policy area: Commerce
Latest action: action_date: 2024-11-12
text: Referred to the House Committee on Small Business.

Summaries:

tv_txt: I 118th CONGRESS 2d Session H. R. 10115 IN THE HOUSE OF REPRESENTATIVES November 12, 2024 Mr. Landsman introduced the following bill; which was referred to the Committee on Small Business A BILL To amend the Small Business Act and the Small Business Investment Act of 1958 to provide resources, counseling, and access to capital for child care providers, and for other purposes.

1. Short title This Act may be cited as the Child Care for Small Businesses Act . 2. Small business loans for covered nonprofit child care providers (a) In general Section 3 of the Small Business Act ( 15 U.S.C. 632 ) is amended by adding at the end the following new subsection: (gg) Covered nonprofit child care provider In this Act, the term covered nonprofit child care provider means an organization— (1) that— (A) is in compliance with licensing requirements for child care providers of the State in which the organization is located; (B) 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; (C) is primarily engaged in providing child care for children from birth to compulsory school age; and (D) is in compliance with applicable industry-based size standard established under subsection (a); (2) 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) ); (3) that may— (A) provide care for school-age children outside of school hours or outside of the school year; or (B) offer preschool or prekindergarten educational programs; and (4) 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 of nonprofit child care providers for 7 (a) loans Section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ) is amended by adding at the end the following new paragraph: (38) Covered nonprofit child care providers (A) In general The Administrator may guarantee loans made to a covered nonprofit child care provider under the same terms, conditions, and processes as a loan made under this subsection. (B) Loan guarantee A covered nonprofit child care provider that receives a loan under this subsection— (i) with respect to a loan greater than $500,000, shall obtain a guarantee of timely payment of the loan from another person; and (ii) with respect to a loan less than or equal to $500,000, may not be required to obtain a guarantee of timely payment of the loan. (C) Limitation on basis for ineligibility The Administrator may not determine that a covered nonprofit child care provider is not eligible for a loan under this section on the basis that the proceeds of such loan will be used for a religious activity protected under the First Amendment to the Constitution of the United States (as determined by a court of competent jurisdiction). (D) Report Not later than 1 year after the date of the enactment of this Act, and annually thereafter, the Administrator shall submit to Congress a report that contains— (i) for the year covered by the report, the number and dollar value of loans made under this paragraph; and (ii) any other information determined relevant by the Administrator. . (c) Eligibility of nonprofit child care providers for 504 financing Title V of the Small Business Investment Act of 1958 ( 15 U.S.C. 695 et seq. ) is amended by adding at the end the following new section: 511. Assistance for covered nonprofit child care providers (a) In general The Administrator may provide financing under this title to a covered nonprofit child care provider (as defined in section 3(gg) of the Small Business Act). (b) Guarantee A covered nonprofit child care provider that receives financing under this title— (1) with respect to financing in an aggregate amount greater than $500,000, shall obtain a guarantee of timely payment of the loan from another person; and (2) with respect to financing in an aggregate amount less than or equal to $500,000, may not be required to obtain a guarantee of timely payment of the loan. (c) Limitation on basis for ineligibility The Administrator may not determine that a covered nonprofit child care provider is not eligible for a loan under this section on the basis that the proceeds of such loan will be used for a religious activity protected under the First Amendment to the Constitution of the United States (as determined by a court of competent jurisdiction). (d) Report Not later than 1 year after the date of the enactment of this Act, and annually thereafter, the Administrator shall submit to Congress a report that contains— (1) for the year covered by the report, the number and dollar value of financing provided to a covered nonprofit child care provider under this title; and (2) any other information determined relevant by the Administrator. . 3. Assistance provided by small business development centers Section 21(c)(3) of the Small Business Act ( 15 U.S.C. 648(c)(3) ) is amended— (1) in subparagraph (T), by striking ; and ; (2) in the first subparagraph (U), in clause (v), by striking the period at the end and inserting a semicolon; (3) by redesignating the second subparagraph (U) as subparagraph (V); (4) in subparagraph (V), as so redesignated, in clause (ii)(II), by striking the period at the end and inserting ; and ; and (5) by adding at the end the following new subparagraph: (W) providing business assistance to small business concerns and covered nonprofit child care providers operating or interested in operating a child care business, including one-on-one advising sessions, workshops, or training cohorts on topics relating to— (i) developing a business, financial, and marketing plan; (ii) learning operational policies and procedures; (iii) implementing methods for managing financial statements; (iv) fostering opportunities to expand the business and increase revenues; and (v) other matters the Administrator determines appropriate. . 4. Assistance provided by women’s business centers Section 29 of the Small Business Act ( 15 U.S.C. 656 ) is amended— (1) in subsection (b)— (A) in the matter preceding paragraph (1), by inserting or, to the extent provided in this subsection, for the benefit of covered nonprofit child care providers after by women ; (B) in paragraph (2), by striking and at the end; (C) in paragraph (3), by striking the period at the end and inserting a semicolon; and (D) by adding at the end the following new paragraph: (4) with respect to a project for the benefit of a small business concern or covered nonprofit child care provider or operating or interested in operating a child care business, business assistance, including one-on-one advising sessions, workshops, or training cohorts on topics relating to— (A) developing a business, financial, and marketing plan; (B) learning operational policies and procedures; (C) implementing methods for managing financial statements; (D) fostering opportunities to expand the business and increase revenues; and (E) other matters the Administrator determines appropriate. ; (2) in subsection (d), by inserting and, to the extent permitted under subsection (b), to covered nonprofit child care providers after small business concerns ; and (3) in subsection (n)(1), by striking or small business concern each place it appears and inserting , small business concern, or covered nonprofit child care provider . 5. Child care resource guide The Small Business Act ( 15 U.S.C. 631 et seq. ) is amended— (1) by redesignating section 49 as section 50; and (2) by inserting after section 48 the following new section: 49. Child care resource guide (a) In general Not later than 2 years after the date of the enactment of this section and not less frequently than every 4 years thereafter, the Administrator shall publish or update a resource guide for small business concerns operating or planning to operate as child care providers. (b) Guidance on small business concern matters The resource guide required under subsection (a) shall include— (1) guidance for such small business concerns related to business operations of a child care provider (including marketing and management planning); (2) references to other Federal programs and guides, resources, and websites relating to the overall quality of child care provider operations, including safety measures and training for employees of such provider; and (3) any other matters the Administrator determines appropriate. (c) Publication and dissemination required (1) Publication The Administrator, women’s business centers (as described under section 29), small business development centers, chapters of the Service Corps of Retired Executives (established under section 8(b)(1)(B)), and Veteran Business Outreach Centers (as described under section 32) shall make the resource guide required under subsection (a) publicly available on an appropriate website. (2) Distribution (A) By Administrator The Administrator shall distribute the resource guide required under subsection (a) electronically to offices of the Administration, including district offices. (B) By other entities District offices of the Administration, women’s business centers (as described under section 29), small business development centers, chapters of the Service Corps of Retired Executives (established under section 8(b)(1)(B)), and Veteran Business Outreach Centers (as described under section 32) shall— (i) distribute the resource guide required under subsection (a) to small business concerns operating or planning to operate as child care providers; and (ii) make available physical copies of such guide. . 6. Report on for-profit child care providers (a) In general Not later than 120 days after the date of the enactment of this Act, the Administrator of the Small Business Administration shall submit to Congress a study and report on for-profit child care providers that includes— (1) an assessment of the challenges and needs of such providers; (2) a description of the resources and support that the Small Business Administration provides to such providers; (3) any deficiencies in the resources and support described under paragraph (2); and (4) any recommendations for legislative actions necessary to address any challenges or needs faced by such providers that are identified by the report required in this subsection. (b) Designated employee duties The Administrator of the Small Business Administration shall designate a full-time employee within the Administration as a point of contact for for-profit child care providers. Such employee shall— (1) carry out the study required under subsection (a); and (2) provide recommendations to the Administrator on how to better deliver existing resources and support to for-profit child care providers. (c) For-Profit child care provider defined The term for-profit child care provider has the meaning given the term eligible child care provider in section 658P of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858n ) and is a provider that operates— (1) on a for-profit basis; and (2) in one or more of the several States or the District of Columbia.