“To allow nonprofit child care providers to participate in certain loan programs of the Small Business Administration, and for other purposes.”
No CRS summary available for this bill.
This section deems covered nonprofit child care providers—defined as state-licensed 501(c)(3) organizations primarily providing child care for children from birth to compulsory school age, with compliant employee background checks, nondiscriminatory practices, and meeting applicable SBA size standards—to be small business concerns eligible for section 7(a) loans and 504 loans (i.e., loans for fixed assets made through certified development companies). Such loans must be made through participating financial institutions on a deferred participation basis, with the SBA prohibited from direct lending or immediate participation; loans over $500,000 require a third-party guarantee of timely payment; and eligibility cannot be denied due to association with First Amendment-protected entities. This section further requires the SBA Administrator to submit annual reports to Congress, beginning one year after enactment, detailing the number and amount of such loans issued under each program.