Small Business Child Care Investment Act

Access to Capital for Child Care Organizations: By deeming covered nonprofit child care providers as "small business concerns," the bill allows them to participate in 7(a) and 504 loan programs (Section 2(a)(B)(i) and Section 2(b)(2)(A)). This provides a mechanism for these organizations to obtain financing.

Lower Barriers for Smaller Loans: For loans that are not more than $500,000, the provider may not be required to obtain a guarantee of timely payment from another person or entity (Section 2(a)(B)(iii)(ii) and Section 2(b)(2)(C)(ii)).

Protection of First Amendment Associations: The Administrator is prohibited from determining a provider is ineligible based on an association with an entity protected by the First Amendment (Section 2(a)(C)(i) and Section 2(b)(3)(A)).

Strict Compliance Burdens: To qualify, organizations must ensure that every employee and regular volunteer complies with specific criminal background check requirements (Section 2(a)(A)(ii)).

Financial Requirements for Large Loans: If a covered nonprofit child care provider seeks a loan or financing of more than $500,000, they are required to obtain a guarantee of timely payment from another person or entity (Section 2(a)(B)(iii)(I) and Section 2(b)(2)(C)(i)).

Restrictions on Fund Usage: Organizations receiving these loans are prohibited from using the proceeds for any religious activity protected under the First Amendment (Section 2(a)(C)(ii) and Section 2(b)(3)(B)).

Prohibition on Direct Lending: The Small Business Administration is prohibited from making direct loans or immediate participation agreements; all loans must be made in cooperation with banks or other financial institutions (Section 2(a)(B)(ii) and Section 2(b)(2)(B)).