Rural Child Care Facility Expansion Act

Key Points

• The bill creates a new USDA program offering low-interest loans to child care providers in rural communities with fewer than 20,000 people. These loans help providers renovate, expand, or adapt their buildings to serve more children.
• The program specifically targets child care deserts, which are areas where there are at least three times as many kids as there are available child care spots, or where no licensed providers exist at all.
• Loans carry very low interest rates pegged to Treasury bond rates plus a tiny markup, and borrowers can take up to 25 years to repay. Up to 10 percent of a loan can go toward early planning and design work.
• To qualify, child care providers must comply with state licensing rules and conduct criminal background checks on all employees and volunteers. The USDA must respond to loan applications within 90 days with an approval or denial.
• The bill requires annual reports to Congress tracking how many loans are awarded, how many child care slots are created, and demographic data about the communities served, including slots for low-income families and dual language learners.