S.Amdt. 3789

This amendment aims to add a section to the bill called Small Business Loans for Nonprofit Child Care Providers. Its purpose is to make it easier for nonprofit child care providers to get loans by treating them as small business concerns.

The amendment is based on findings that there is a severe shortage of affordable, quality child care in the U.S., which specifically hurts military recruitment, retention, and mission readiness because military families face unique barriers and long waitlists at military centers.

To achieve this, the amendment adds the following changes:

• Loan Eligibility: It amends the Small Business Act and the Small Business Investment Act of 1958 to allow "covered nonprofit child care providers" to be deemed small business concerns for specific loan programs.
• Provider Requirements: To qualify, providers must be 501(c)(3) tax-exempt organizations, follow state licensing, meet size standards, and ensure employees and volunteers pass criminal background checks.
• Loan Rules:
  • Loans must be made through financial institutions; the Administrator cannot make direct loans.
  • A guarantee from another person or entity is required for loans over $500,000.
  • Providers cannot be denied based on an association with an entity protected by the First Amendment.
  • Loan funds cannot be used for religious activities protected under the First Amendment.
• Prioritization: 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 Small Business Administration must report to Congress annually on the number and amount of loans provided to these nonprofits.