Small Business Child Care Investment Act

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.