Small Business Child Care Investment Act
Sponsored By: Representative Lee, Susie [D-NV-3]
Introduced
Summary
Creates a new SBA loan pathway for nonprofit child care providers. The bill defines a "covered nonprofit child care provider" and lets qualifying providers be treated as small businesses for 7(a) and 504 loans while setting rules for lender participation and reporting.
Show full summary
- Covered nonprofit child care providers must be 501(c)(3) tax exempt organizations that meet state child care licensing and industry size standards, serve children from birth to compulsory school age, follow criminal background checks for employees and regular volunteers, and certify non‑discrimination in services. They may also care for school‑age children outside school hours or offer preschool or prekindergarten programs.
- Loans and financings for these providers are made in cooperation with banks, certified development companies, or other financial institutions through deferred participation agreements. The SBA is barred from making direct loans or immediate participation agreements for these loans and a guaranteed timely payment is required for amounts more than $500,000.
- The Administrator may not deny eligibility based on an association with an entity whose activities are protected by the First Amendment. The SBA must report to Congress within one year and then annually on the number and amounts of 7(a) and Title V loans to covered providers and any other relevant information.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 0 benefits, 0 costs, 2 mixed.
Nonprofit child care providers qualify
This bill would create a new "covered nonprofit child care provider" category so eligible 501(c)(3) child care nonprofits could use SBA loan programs. To qualify, organizations would need to follow State child care licensing and meet SBA size rules, and be primarily engaged in care from birth to compulsory school age. Every employee and regular volunteer would need criminal background checks under federal child care law. Providers would also need to certify they will not discriminate in business practices, and they could offer school‑age or preschool programs. These rules would take effect upon enactment.
Small Business loans for nonprofit child care
This bill would let covered nonprofit child care providers be treated as small businesses for SBA 7(a) and 504 loan programs. Loans would have to be made with banks, certified development companies, or other financial institutions through deferred participation agreements. The SBA Administrator would be prohibited from making direct loans or entering immediate participation agreements for these loans. Any loan or financing over $500,000 would need a guarantee of timely payment from another person or entity. The Administrator could not deny eligibility because of association with First Amendment‑protected activities. These rules would take effect upon enactment.
Sponsors & CoSponsors
Sponsor
Lee, Susie [D-NV-3]
NV • D
Cosponsors
Stauber
MN • R
Sponsored 1/15/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov