Sponsors (3)
The bill expands SBA loan eligibility and transparency for nonprofit child-care providers to boost capacity and protect against politicized denials, but it also adds compliance requirements, potential delays in access to financing, and some fiscal risk and costs for providers and taxpayers.
Parents and children: could see more available and stable child care if nonprofit providers use SBA loans to maintain or expand services.
Small nonprofit child-care providers: become eligible for SBA 7(a) and 504 loans, expanding access to capital for facilities, working capital, and operations.
Taxpayers and policymakers: SBA annual reporting to Congress will increase transparency about lending to nonprofit child-care providers.
Taxpayers and the federal government: expanded lending could raise federal exposure and indirect taxpayer risk if guarantees or deferred participation lead to losses.
Nonprofit providers and families seeking services: SBA is barred from making direct loans or immediate participations, which may slow access to financing and increase reliance on partner lenders.
Nonprofit child-care providers: new compliance requirements (state licensing, 501(c)(3) status, criminal background checks, nondiscrimination certifications) add administrative burden and may deter or delay applicants.
Based on analysis of 2 sections of legislative text.
Designates qualifying nonprofit child care providers as small businesses for SBA 7(a) and 504 loan eligibility, adds eligibility conditions, lender participation rules, and reporting requirements.
Creates a new "covered nonprofit child care provider" small-business classification and makes qualifying nonprofit child care providers eligible for SBA 7(a) and 504 loan programs. It sets basic eligibility rules and safeguards (background check and nondiscrimination certification), limits how the SBA may participate in loans, requires timely‑payment guarantees for larger loans, protects applicants from being denied for association with entities exercising First Amendment rights, and requires the SBA to report annually to Congress on loan counts and amounts to these providers.
Official title: To allow nonprofit child care providers to participate in certain loan programs of the Small Business Administration, and for other purposes.
Introduced January 15, 2026 by Susie Lee · Last progress January 15, 2026