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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7109 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 7109
To allow nonprofit child care providers to participate in certain loan
programs of the Small Business Administration, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 15, 2026
Ms. Lee of Nevada (for herself and Mr. Stauber) introduced the
following bill; which was referred to the Committee on Small Business
_______________________________________________________________________
A BILL
To allow nonprofit child care providers to participate in certain loan
programs of the Small Business Administration, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Business Child Care Investment
Act''.
SEC. 2. SMALL BUSINESS LOANS FOR NONPROFIT CHILD CARE PROVIDERS.
(a) Business Loan Program.--Section 3(a) of the Small Business Act
(15 U.S.C. 632(a)) is amended by adding at the end the following:
``(10) Nonprofit child care providers.--
``(A) Definition.--In this paragraph, the term
`covered nonprofit child care provider' means an
organization--
``(i) that--
``(I) is in compliance with
licensing requirements for child care
providers of the State in which the
organization is located;
``(II) is described in section
501(c)(3) of the Internal Revenue Code
of 1986 and exempt from tax under
section 501(a) of such Code;
``(III) is primarily engaged in
providing child care for children from
birth to compulsory school age; and
``(IV) is in compliance with the
size standards established under this
subsection for business concerns in the
applicable industry;
``(ii) for which each employee and regular
volunteer complies with the criminal background
check requirements under section 658H(b) of the
Child Care and Development Block Grant Act of
1990 (42 U.S.C. 9858f(b));
``(iii) that may--
``(I) provide care for school-age
children outside of school hours or
outside of the school year; or
``(II) offer preschool or
prekindergarten educational programs;
and
``(iv) subject to any exemption under
Federal law applicable to the organization,
that certifies to the Administrator that the
organization will not discriminate in any
business practice, including providing services
to the public, on the basis of race, color,
religion, sex, sexual orientation, marital
status, age, disability, or national origin.
``(B) Eligibility for certain loan programs.--
``(i) In general.--Notwithstanding any
other provision of this subsection, a covered
nonprofit child care provider shall be deemed
to be a small business concern for purposes of
loans and financings under section 7(a).
``(ii) Prohibition on direct lending.--A
loan or financing to a covered nonprofit child
care provider made under the authority under
clause (i) shall be made in cooperation with
banks, certified development companies, or
other financial institutions through agreements
to participate on a deferred basis. The
Administrator is prohibited from making a
direct loan or financing or entering an
agreement to participate on an immediate basis
for a loan or financing made to a covered
nonprofit child care provider under the
authority under clause (i).
``(iii) Loan guarantee.--A covered
nonprofit child care provider shall obtain a
guarantee of timely payment of the loan or
financing from another person or entity to be
eligible for such loan or financing of more
than $500,000 under the authority under clause
(i).
``(C) Limitation.--The Administrator may not
determine that a covered nonprofit child care provider
is not eligible for a loan or financing described in
subparagraph (B)(i) on the basis that the covered
nonprofit child care provider is associated with an
entity whose activities are protected under the First
Amendment to the Constitution of the United States, as
interpreted by the courts of the United States.''.
(b) 504 Program.--Section 502 of the Small Business Investment Act
of 1958 (15 U.S.C. 696) is amended--
(1) in the matter preceding paragraph (1), by striking
``The Administration'' and inserting the following:
``(a) In General.--The Administration''; and
(2) by adding at the end the following:
``(b) Nonprofit Child Care Providers.--
``(1) Definition.--In this subsection, the term `covered
nonprofit child care provider' has the meaning given that term
in section 3(a)(10) of the Small Business Act (15 U.S.C.
632(a)(10)).
``(2) Eligibility for certain loan programs.--
``(A) In general.--Notwithstanding any other
provision of this title, a covered nonprofit child care
provider shall be deemed to be a small business concern
for purposes of loans and financings under this title.
``(B) Prohibition on direct lending.--A loan or
financing to a covered nonprofit child care provider
made under the authority under subparagraph (A) shall
be made in cooperation with banks, certified
development companies, or other financial institutions
through agreements to participate on a deferred basis.
The Administrator is prohibited from making a direct
loan or financing or entering an agreement to
participate on an immediate basis for a loan or
financing made to a covered nonprofit child care
provider under the authority under subparagraph (A).
``(C) Loan guarantee.--A covered nonprofit child
care provider shall obtain a guarantee of timely
payment of the loan or financing from another person or
entity to be eligible for such loan or financing of
more than $500,000 under the authority under
subparagraph (A).
``(3) Limitation.--The Administrator may not determine that
a covered nonprofit child care provider is not eligible for a
loan or financing described in paragraph (2)(A) on the basis
that the covered nonprofit child care provider is associated
with an entity whose activities are protected under the First
Amendment to the Constitution of the United States, as
interpreted by the courts of the United States.''.
(c) Reporting.--
(1) Definition.--In this subsection, the term ``covered
nonprofit child care provider'' has the meaning given the term
in paragraph (10) of section 3(a) of the Small Business Act (15
U.S.C. 632(a)), as added by subsection (a).
(2) Requirement.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter, the
Administrator of the Small Business Administration shall submit
to Congress a report that contains--
(A) for the year covered by the report--
(i) the number of loans and financings made
under section 7(a) of the Small Business Act
(15 U.S.C. 636(a)) to covered nonprofit child
care providers;
(ii) the amount of the loans and financings
described in clause (i);
(iii) the number of loans and financings
provided under title V of the Small Business
Investment Act of 1958 (15 U.S.C. 695 et seq.)
to covered nonprofit child care providers; and
(iv) the amount of the loans and financings
described in clause (iii); and
(B) any other information determined relevant by
the Administrator.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Small Business.
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