S.Amdt. 3271

SA 3271 aims to add a new section to the bill that provides small business loans to covered nonprofit child care providers. The purpose is to address a severe shortage of affordable and quality child care, which the amendment finds impacts military recruitment, retention, mission readiness, and the ability of military spouses to work.

The amendment seeks to change the Small Business Act and the Small Business Investment Act of 1958 to add the following:

• Eligibility: It defines "covered nonprofit child care providers" as 501(c)(3) organizations that meet state licensing requirements, provide care for children from birth to compulsory school age, meet size standards, and ensure employees and volunteers pass criminal background checks. They must also certify they will not discriminate based on race, color, religion, sex, sexual orientation, marital status, age, disability, or national origin.

• Loan Access: These providers will be deemed "small business concerns" for loans under section 7(a) of the Small Business Act and the 504 Program. Loans must be made through financial institutions rather than as direct loans from the Administrator.

• Guarantee Requirements: A guarantee from another person or entity is required for loans over $500,000, but not for loans of $500,000 or less.

• Specific Rules:

  • Eligibility cannot be denied because a provider is associated with an entity with First Amendment protected activities.
  • Loan funds cannot be used for religious activities protected under the First Amendment.
  • Priority for loan processing and funding will be given to providers located in the same metropolitan statistical area as a U.S. military installation.

• Accountability: The Administrator of the Small Business Administration must submit an annual report to Congress detailing the number and amount of loans provided to these nonprofit child care providers.