Sponsors (3)
Treats qualifying nonprofit child care providers as small businesses for SBA 7(a) and 504 loans, adds lending conditions and SBA reporting.
The bill broadens SBA loan access for nonprofit child-care providers to help expand and stabilize services for families, but it adds compliance and guarantee requirements, retains limits on SBA lending mechanisms that may slow access, and increases potential federal financial exposure.
Small nonprofit child-care providers gain eligibility for SBA 7(a) and 504 loans, expanding their access to capital for facility improvement and operations.
Parents and families may see increased child-care capacity and greater stability of local providers if loans are used to maintain or expand services.
Taxpayers and Congress receive more transparency because the SBA must report annually to Congress on lending to nonprofit child-care providers.
Nonprofit providers seeking SBA loans over $500,000 must secure a timely‑payment guarantee, which could be difficult and raise borrowing costs or block large loans.
Providers face new administrative compliance requirements (state licensing, 501(c)(3) documentation, criminal background checks, nondiscrimination certifications), increasing time and cost to obtain financing.
The SBA is prohibited from making direct loans or immediate participations, which could slow access to funds and increase reliance on partner lenders.
Based on analysis of 2 sections of legislative text.
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
Creates a new category of "covered nonprofit child care provider" and allows qualifying nonprofit child care organizations to be treated as small business concerns for SBA 7(a) and 504 loan programs, subject to conditions and participation rules. It also requires the SBA to report to Congress annually on the number and amounts of such loans and related information. Defines eligibility criteria (state license, 501(c)(3) status, age range served, SBA size standards, background checks, nondiscrimination certification), prohibits the SBA from denying eligibility based on First Amendment–protected associations, and adds requirements for lender cooperation and extra guarantees for loans over $500,000.