Skip to content
Govbase
Govbase
Congress·In Committee·H.R. 7109

Congress Would Let Nonprofit Child Care Providers Qualify for SBA-Backed Loans

Small Business Child Care Investment Act

2 months ago·View on Congress.gov
Part of: Congress Moves to Open SBA Loans to Nonprofit Child Care Centers

Legislative Progress

House
Senate
President
Law

Key Points

  • Lets certain nonprofit child care providers qualify for two major Small Business Administration loan programs, treating them like small businesses for lending.
  • To qualify, a nonprofit child care provider must be properly licensed, be a 501(c)(3), focus mainly on child care for kids from birth to school age, and meet size limits.
  • Workers and regular volunteers must meet criminal background check rules, and the provider must certify it won’t discriminate in serving the public.
  • Loans must be made through partner lenders (like banks); the Small Business Administration cannot make direct loans to these nonprofits under this change.
  • For loans over $500,000, the provider must get an outside guarantee of on-time payment; SBA must also report yearly to Congress on these loans.
Small BusinessEducationLabor Employment

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Mixed Impacts(2)
Housing Assistance
Neutral
Child Tax Credit
Neutral

Milestones

2 milestones2 actions
Jan 15, 2026House

Referred to the House Committee on Small Business.

Jan 15, 2026

Introduced in House

What Happens Next

Projected impacts based on AI analysis

After the bill is enacted and SBA/lenders update their eligibility checks

Nonprofit child care providers become eligible to apply for SBA 7(a) loans and 504-style financings under the new definition

More centers could seek funding for renovations, expansion, or purchasing property—potentially creating more child care slots over time

As soon as the new eligibility is in effect

Lenders begin offering these loans only through partner-lending arrangements (no direct SBA lending under this authority)

Providers will still need a bank or certified development company willing to make the loan, which can affect how easy it is to access the program locally

At the time of application for loans above $500,000

Providers seeking financing over $500,000 must secure a separate payment guarantee

Large expansion projects may need an added guarantor or added fees, which could delay or limit big construction plans for some nonprofits

No later than 1 year after enactment (then every year after)

SBA submits its first annual report to Congress on loans made to covered nonprofit child care providers

The public and lawmakers get clearer numbers on how many providers used the program, and whether it’s expanding child care capacity

Source Information

Document Type

Congressional Bill

Official Title

Small Business Child Care Investment Act

Bill NumberHR 7109
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Small Business.

Sponsor

Cosponsors

(1)
R: 1

Analysis generated by AI. Always verify with official sources.