To amend the Small Business Act and the Small Business Investment Act of 1958 to provide resources, counseling, and access to capital for child care providers, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
This bill opens up Small Business Administration (SBA) loan programs and business development resources to nonprofit child care providers for the first time. It makes qualifying 501(c)(3) child care organizations eligible for SBA 7(a) guaranteed loans and 504 financing, directs Small Business Development Centers and Women's Business Centers to provide specialized business counseling for child care operators, requires the SBA to publish a child care resource guide, and mandates a study on the challenges facing for-profit child care providers.
Who Benefits and How
Nonprofit child care providers gain access to SBA-guaranteed loans (up to \,000 without needing a third-party guarantee) and 504 financing for facilities and equipment, which were previously unavailable to nonprofits. Small business owners operating or planning to operate child care businesses benefit from new dedicated counseling through SBDCs and Women's Business Centers. For-profit child care providers benefit from a dedicated SBA point of contact and a congressional study on their specific needs. Working families may indirectly benefit from expanded child care supply.
Who Bears the Burden and How
The Small Business Administration bears significant new administrative responsibilities including processing nonprofit loan applications, publishing resource guides, designating a child care liaison, and submitting annual reports to Congress. SBA lending partners take on new loan guarantee obligations. Taxpayers bear the financial risk of SBA-guaranteed loans to nonprofit child care providers if borrowers default. Small Business Development Centers and Women's Business Centers must expand their services to cover child care business topics.
Key Provisions
- Defines "covered nonprofit child care provider" as a licensed 501(c)(3) primarily serving children from birth to school age
- Makes these nonprofits eligible for SBA 7(a) loans with no third-party guarantee required for loans under \,000
- Extends SBA 504 financing to nonprofit child care providers
- Prohibits denying loans based on religious activities protected by the First Amendment
- Requires SBDCs and Women's Business Centers to provide child care business counseling
- Mandates a child care resource guide updated every 4 years
- Orders a study and designated employee for for-profit child care provider needs
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Expands Small Business Administration resources, loan programs, counseling, and capital access to support child care providers, including making nonprofit child care organizations eligible for SBA 7(a) loans and 504 financing.
Key Policy Areas
Small Business, Child Care, Education
Primary Purpose
Expands Small Business Administration resources, loan programs, counseling, and capital access to support child care providers, including making nonprofit child care organizations eligible for SBA 7(a) loans and 504 financing.
Policy Domains
Whole Bill
Identified Gains
Contextual inference, no direct clause citation- Nonprofit child care providers
- Small business child care operators
- For-profit child care providers
- Working families needing child care
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Small Business Administration
- SBA lending partners
- U.S. taxpayers
- Small Business Development Centers and Women's Business Centers
Contextual inference, no direct clause citation
Sponsors
Legislative Progress
IntroducedMr. Landsman introduced the following bill; which was referred to …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Child care business owners, Nonprofit child care providers, Women-owned child care businesses
Small business owners seeking child care, Small business owners with child care needs
Small Business Development Centers, Women's business centers
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_administrator"
- → Administrator of the Small Business Administration
Key Definitions
Terms defined in this bill
A 501(c)(3) tax-exempt organization that is licensed as a child care provider, primarily serves children from birth to compulsory school age, meets SBA size standards, has employees/volunteers with criminal background checks, and certifies non-discrimination.
An eligible child care provider as defined in the Child Care and Development Block Grant Act that operates on a for-profit basis in one or more U.S. states or D.C.
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology