119-s273

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 273 Reported in Senate

    (RS) ]

<DOC>

 Calendar No. 9
119th CONGRESS
 1st Session
 S. 273

To allow nonprofit child care providers to participate in certain loan 
 programs of the Small Business Administration, and for other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 January 28, 2025

 Ms. Rosen (for herself, Ms. Ernst, Mr. Risch, and Mr. Warner) 
introduced the following bill; which was read twice and referred to the 
 Committee on Small Business and Entrepreneurship

 February 10, 2025

 Reported by Ms. Ernst, with an amendment
 [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

 A BILL

To allow nonprofit child care providers to participate in certain loan 
 programs of the Small Business Administration, and for other purposes.

 Be it enacted by the Senate and House of Representatives 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:
 ``

    (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 and financings under 

section 7

    (a) .
 ``
            (ii) Prohibition on direct lending.--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 participate on a deferred

    (guaranteed) 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 
 authority under clause
            (i) .
 ``
            (iii) Loan guarantee.--A covered 
 nonprofit child care provider--
 ``
            (I) 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) ; and
 ``
            (II) may not be required to 
 obtain a guarantee of timely payment of 
 the loan or financing to be eligible 
 for such loan or financing that is not 
 more than $500,000 under the authority 
 under clause
            (i) .
 ``
            (C) Limitations.--
 ``
            (i) Basis for ineligibility.--The 
 Administrator may not determine that a covered 
 nonprofit 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 activities are 
 protected under the First Amendment to the 
 Constitution of the United States, as 
 interpreted by the courts of the United States.
 ``
            (ii) Use of funds.--A covered nonprofit 
 child care provider receiving a loan or 
 financing described in subparagraph
        (B)
            (i) may 
 not use the proceeds of the loan or financing 
 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) 504 Program.--

Section 502 of the Small Business Investment Act 
of 1958 (15 U.S.C. 696) is amended--

    (1) in the matter preceding paragraph

    (1) , by striking 
 ``The Administration'' and inserting the following:
 ``

    (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 meaning given that term 
 in 

section 3

    (a)

    (10) of the Small Business Act (15 U.S.C. 
 636

    (a)

    (10) 632

    (a)

    (10) ).
 ``

    (2) Eligibility for certain loan programs.--
 ``
        (A) In general.--Notwithstanding any other 
 provision of this title, a covered nonprofit 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 lending.--A loan or 
 financing to a covered nonprofit child care provider 
 made under the authority under subparagraph
        (A) shall 
 be made in cooperation with banks, certified 
 development companies, or other financial institutions 
 through agreements to participate on a deferred

    (guaranteed) 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 authority under subparagraph
        (A) .
 ``
            (C) Loan guarantee.--A covered nonprofit child 
 care provider--
 ``
            (i) 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 subparagraph
        (A) ; and
 ``
            (ii) may not be required to obtain a 
 guarantee of timely payment of the loan or 
 financing to be eligible for such loan or 
 financing that is not more than $500,000 under 
 the authority under subparagraph
        (A) .
 ``

    (3) Limitations.--
 ``
        (A) Basis for ineligibility.--The Administrator 
 may not determine that a covered nonprofit child care 
 provider 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.
 ``
        (B) Use of funds.--A covered nonprofit child care 
 provider receiving a loan or financing described in 
 paragraph

    (2)
        (A) may not use the proceeds of the loan 
 or financing 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.''.
            (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 Business 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) ;
            (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 nonprofit child care providers; and
            (iv) the amount of the loans and financings 
 described in clause
            (iii) ; and
        (B) any other information determined relevant by 
 the Administrator.
 Calendar No. 9

119th CONGRESS

 1st Session

 S. 273

_______________________________________________________________________

 A BILL

To allow nonprofit child care providers to participate in certain loan 
 programs of the Small Business Administration, and for other purposes.

_______________________________________________________________________

 February 10, 2025

 Reported with an amendment