Small Business Child Care Investment Act
Sponsored By: Senator Rosen, Jacky [D-NV]
In Committee
Summary
Expands SBA loan access to nonprofit child care providers. It would create clear eligibility rules, safety and nondiscrimination requirements, and annual reporting to track use of SBA 7(a) and 504 financing for these organizations.
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- Families: Could see more nonprofit child care options and stronger support for preschool and school‑age programs because providers could access SBA financing.
- Nonprofit child care providers: Eligible organizations must be tax exempt under 501(c)(3), licensed, meet size rules, run criminal background checks for staff and regular volunteers, and sign a nondiscrimination covenant.
- Lenders and loan terms: Loans must be made with banks or other financial partners rather than by the SBA directly. Loans over $500,000 would require a guarantee of timely payment while loans up to $500,000 may be eligible without that guarantee.
- SBA transparency: Requires the SBA to report to Congress within one year and then annually on the number and amounts of 7(a) and 504 loans made to covered nonprofit child care providers.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
New eligibility rules for nonprofit child care
If enacted, the bill would define a "covered nonprofit child care provider" for SBA loan rules. To qualify, your organization would need to be a 501(c)(3) tax-exempt group and follow State child care licensing rules. You would need to mainly care for children from birth to school age, meet SBA size limits, and ensure staff and regular volunteers pass required background checks. You would also need to be able to provide school-age or preschool programs and, unless exempt, certify you will not discriminate. This would take effect upon enactment.
SBA loan access for nonprofit child care
If enacted, covered nonprofit child care providers would count as small businesses for SBA 7(a) and 504 loans. Loans must be made with banks or certified development companies on a deferred (guaranteed) participation basis; the SBA could not make direct loans or immediate equity participations for these borrowers. Loans or financings over $500,000 would need a guarantee of timely payment from another person or entity. The SBA could not deny eligibility solely for ties to First Amendment activity, and loan proceeds could not be used for religious activities protected by the First Amendment. This would take effect upon enactment.
Sponsors & CoSponsors
Sponsor
Rosen, Jacky [D-NV]
NV • D
Cosponsors
Sen. Ernst, Joni [R-IA]
IA • R
Sponsored 1/28/2025
Sen. Risch, James E. [R-ID]
ID • R
Sponsored 1/28/2025
Sen. Warner, Mark R. [D-VA]
VA • D
Sponsored 1/28/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov