Rural Child Care Facility Expansion Act

Low-interest loans for rural child care

If enacted, this bill would create a nationwide, government-backed low-interest loan program run by the U.S. Department of Agriculture. The program would begin one year after enactment. Loans would be made to "covered child care providers" in rural communities and child care deserts to renovate, retrofit, expand, or adapt physical facilities. Covered providers would include birth-to-compulsory-school-age programs that offer school-age care outside school hours or run preschool/pre-kindergarten, are state-licensed, and have required criminal background checks; the Secretary could also deem other providers qualified. Loans would bear interest equal to the comparable Treasury constant maturity rate (set on the business day before each advance) plus 0.125%, have terms set by the Secretary up to 25 years, and allow no more than 10% of proceeds for pre-development (planning and design). The Secretary would have 30 days to notify applicants if their application is complete and 90 days to approve or disapprove. The Secretary would only approve loans that show the project will increase child care availability in a defined child care desert in a rural community. The program would report annually to Congress starting one year after enactment on loans awarded, activities funded, slots created or preserved (including those serving low-income families and dual language learners), staff employed, community demographics, and number of pre-kindergarten providers receiving loans.