S. 273 — Small Business Child Care Investment Act

This section amends the Small Business Act to deem "covered nonprofit child care providers" (i.e., state-licensed, tax-exempt 501(c)(3) organizations primarily providing child care for children from birth to compulsory school age that meet applicable SBA size standards, conduct required criminal background checks, certify nondiscrimination, and may offer after-school or preschool programs) to be small business concerns eligible for 7(a) loan guarantees, and similarly amends the Small Business Investment Act to extend such eligibility to 504 loans. For both programs, the Small Business Administration (SBA) is prohibited from providing direct loans or immediate participation; all loans must occur through participating banks, certified development companies, or other financial institutions on a deferred (guaranteed) basis; loans over $500,000 require a third-party guarantee of timely payment (not required for loans of $500,000 or less); SBA may not deny eligibility based on association with a First Amendment-protected entity; and loan proceeds may not fund religious activities protected under the First Amendment. (Thus, qualified nonprofit child care providers gain access to SBA-guaranteed financing previously unavailable to nonprofits, supporting facility expansion, equipment purchases, or working capital needs while safeguarding against direct federal lending and religious uses.)