Sponsors (4)
The bill expands access to SBA-backed financing and strengthens safety and transparency for nonprofit child care providers, but it adds compliance requirements and financing limits that could slow or constrain some providers—especially larger projects and religiously affiliated organizations.
Nonprofit child care providers will be eligible for SBA 7(a) and 504/title V financing and can access deferred/guaranteed loans through participating lenders, increasing their ability to obtain affordable capital for facility upgrades and operations.
Children and families will benefit because the bill requires employee and volunteer criminal background checks at covered providers, improving child safety and reducing risks of harm.
Nonprofit providers are protected from being denied eligibility solely for association with First Amendment–protected entities, shielding them from discrimination based on speech or expressive activity.
Nonprofit child care providers seeking loans or financing over $500,000 may be unable to proceed if they cannot obtain a required third‑party guarantor, limiting large-capital projects like expansions or property purchases.
Small nonprofit providers will face new administrative burdens from required compliance with state licensing, SBA size standards, and background‑check rules, which could increase costs or strain operational capacity.
Nonprofit providers may face slower or more complicated access to funds because the bill bars direct SBA lending and relies on participating lenders who may decline or impose stricter terms.
Based on analysis of 2 sections of legislative text.
Creates a new legal category that lets nonprofit child care providers be treated as "small businesses" for certain SBA lending programs so they can access SBA 7(a) loans and 504 financings. It sets rules for how those loans must be made, requires third-party guarantees for loans over $500,000, protects eligibility from being denied solely because of association with First Amendment–protected activities while forbidding use of loan proceeds for religious activities, and requires the SBA to report annually on lending to these providers.
Treats nonprofit child care providers as small businesses for SBA 7(a) and 504 loans, sets lender/guarantee rules, limits use of proceeds for religious activity, and requires annual SBA reporting.
Official title: Allow nonprofit child care providers to participate in certain loan programs of the Small Business Administration, and for other purposes.
Introduced January 28, 2025 by Jacklyn Sheryl Rosen · Last progress January 28, 2025