Sponsors (2)
The bill expands SBA loan access and transparency for nonprofit child-care providers—potentially improving child-care availability—while adding borrowing conditions, compliance burdens, and some risk of slower access and greater federal/taxpayer exposure.
Small nonprofit child-care providers become eligible for SBA 7(a) and 504 loans, giving those providers greater access to capital for facilities and operations.
Parents and families are likely to benefit from increased child-care capacity and greater stability if providers use loans to maintain or expand services.
Taxpayers and state governments gain more transparency because the SBA must report annually to Congress on lending to nonprofit child-care providers.
Nonprofit providers seeking loans over $500,000 must secure a timely‑payment guarantee, which could be difficult to obtain and increase borrowing costs.
SBA is barred from making direct loans or immediate participations, which may slow access to funds and increase reliance on partner lenders.
Providers face added administrative burdens from compliance requirements (state licensing, 501(c)(3) status, criminal background checks, nondiscrimination certifications).
Based on analysis of 2 sections of legislative text.
Allows state-licensed 501(c)(3) child care providers to qualify as small businesses for SBA 7(a) and 504 loans, with lender-participation rules, extra guaranty for loans >$500k, and annual SBA reporting.
Introduced January 15, 2026 by Susie Lee · Last progress January 15, 2026
Creates a new small-business classification that lets state-licensed 501(c)(3) nonprofit child care providers be treated as "small business concerns" for SBA 7(a) and 504 loan programs. It sets eligibility rules (licensing, size standards, criminal background checks for staff, nondiscrimination certification), limits how the SBA may participate in loans, requires extra guaranties for large loans, and requires the SBA to report loan activity for these providers to Congress annually.