S.Amdt. 3271

SA 3271. Ms. ROSEN (for herself and Ms. Ernst) submitted an amendment
intended to be proposed by her to the bill S. 2296, to authorize
appropriations for fiscal year 2026 for military activities of the
Department of Defense, for military construction, and for defense
activities of the Department of Energy, to prescribe military personnel
strengths for such fiscal year, and for other purposes; which was
ordered to lie on the table; as follows:

At the end of subtitle F of title X, add the following:

SEC. 1067. SMALL BUSINESS LOANS FOR NONPROFIT CHILD CARE
PROVIDERS.

(a) Findings.--Congress finds that--

[[Page S5077]]

(1) there is a severe shortage of affordable and quality
child care options in the United States;
(2) access to affordable and quality child care bolsters
military recruitment and retention efforts and contributes to
mission readiness;
(3) military families face unique barriers to accessing
affordable and quality child care, including relocating
frequently, requiring child care for irregular hours, and
living far from extended family and supportive networks;
(4) lack of access to affordable and quality child care
impacts the ability of military spouses to enter the
workforce or maintain employment; and
(5) military families face challenges accessing military
child care centers, which often have limited capacity due to
long waitlists and staff shortages.
(b) Business Loan Program.--Section 3(a) of the Small
Business Act (15 U.S.C. 632(a)) is amended by adding at the
end the following:
``(10) Nonprofit child care providers.--
``(A) Definition.--In this paragraph, the term `covered
nonprofit child care provider' means an organization--
``(i) that--

``(I) is in compliance with licensing requirements for
child care providers of the State in which the organization
is located;
``(II) is described in section 501(c)(3) of the Internal
Revenue Code of 1986 and exempt from tax under section 501(a)
of such Code;
``(III) is primarily engaged in providing child care for
children from birth to compulsory school age; and
``(IV) is in compliance with the size standards established
under this subsection for business concerns in the applicable
industry;

``(ii) for which each employee and regular volunteer
complies with the criminal background check requirements
under section 658H(b) of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858f(b));
``(iii) that may--

``(I) provide care for school-age children outside of
school hours or outside of the school year; or
``(II) offer preschool or prekindergarten educational
programs; and

``(iv) subject to any exemption under Federal law
applicable to the organization, that certifies to the
Administrator that the organization will not discriminate in
any business practice, including providing services to the
public, on the basis of race, color, religion, sex, sexual
orientation, marital status, age, disability, or national
origin.
``(B) Eligibility for certain loan programs.--
``(i) In general.--Notwithstanding any other provision of
this subsection, a covered nonprofit child care provider
shall be deemed to be a small business concern for purposes
of loans and financings under section 7(a).
``(ii) Prohibition on direct lending.--A loan or financing
to a covered nonprofit child care provider made under the
authority under clause (i) shall be made in cooperation with
banks, certified development companies, or other financial
institutions through agreements to participate on a deferred
(guaranteed) basis. The Administrator is prohibited from
making a direct loan or financing or entering an agreement to
participate on an immediate basis for a loan or financing
made to a covered nonprofit child care provider under the
authority under clause (i).
``(iii) Loan guarantee.--A covered nonprofit child care
provider--

``(I) shall obtain a guarantee of timely payment of the
loan or financing from another person or entity to be
eligible for such loan or financing of more than $500,000
under the authority under clause (i); and
``(II) may not be required to obtain a guarantee of timely
payment of the loan or financing to be eligible for such loan
or financing that is not more than $500,000 under the
authority under clause (i).

``(C) Limitations.--
``(i) Basis for ineligibility.--The Administrator may not
determine that a covered nonprofit child care provider is not
eligible for a loan or financing described in subparagraph
(B)(i) on the basis that the covered nonprofit child care
provider is associated with an entity whose activities are
protected under the First Amendment to the Constitution of
the United States, as interpreted by the courts of the United
States.
``(ii) Use of funds.--A covered nonprofit child care
provider receiving a loan or financing described in
subparagraph (B)(i) may not use the proceeds of the loan or
financing for a religious activity protected under the First
Amendment to the Constitution of the United States, as
interpreted by the courts of the United States.
``(iii) Prioritization of loan applications and
approvals.--The Administrator shall prioritize the processing
and approval of applications for a loan or financing
described in subparagraph (B)(i) by, and disbursement of
funds under a loan or financing described in subparagraph
(B)(i) to, covered nonprofit child care providers that are
within the same metropolitan statistical area (as defined by
the Office of Management and Budget) as a military
installation (as defined in section 2801(c) of title 10,
United States Code) within the United States.''.
(c) 504 Program.--Section 502 of the Small Business
Investment Act of 1958 (15 U.S.C. 696) is amended--
(1) in the matter preceding paragraph (1), by striking
``The Administration'' and inserting the following:
``(a) In General.--The Administration''; and
(2) by adding at the end the following:
``(b) Nonprofit Child Care Providers.--
``(1) Definition.--In this subsection, the term `covered
nonprofit child care provider' has the meaning given that
term in section 3(a)(10) of the Small Business Act (15 U.S.C.
632(a)(10)).
``(2) Eligibility for certain loan programs.--
``(A) In general.--Notwithstanding any other provision of
this title, a covered nonprofit child care provider shall be
deemed to be a small business concern for purposes of loans
and financings under this title.
``(B) Prohibition on direct lending.--A loan or financing
to a covered nonprofit child care provider made under the
authority under subparagraph (A) shall be made in cooperation
with banks, certified development companies, or other
financial institutions through agreements to participate on a
deferred (guaranteed) basis. The Administrator is prohibited
from making a direct loan or financing or entering an
agreement to participate on an immediate basis for a loan or
financing made to a covered nonprofit child care provider
under the authority under subparagraph (A).
``(C) Loan guarantee.--A covered nonprofit child care
provider--
``(i) shall obtain a guarantee of timely payment of the
loan or financing from another person or entity to be
eligible for such loan or financing of more than $500,000
under the authority under subparagraph (A); and
``(ii) may not be required to obtain a guarantee of timely
payment of the loan or financing to be eligible for such loan
or financing that is not more than $500,000 under the
authority under subparagraph (A).
``(3) Limitations.--
``(A) Basis for ineligibility.--The Administrator may not
determine that a covered nonprofit child care provider is not
eligible for a loan or financing described in paragraph
(2)(A) on the basis that the covered nonprofit child care
provider is associated with an entity whose activities are
protected under the First Amendment to the Constitution of
the United States, as interpreted by the courts of the United
States.
``(B) Use of funds.--A covered nonprofit child care
provider receiving a loan or financing described in paragraph
(2)(A) may not use the proceeds of the loan or financing for
a religious activity protected under the First Amendment to
the Constitution of the United States, as interpreted by the
courts of the United States.
``(C) Prioritization of loan applications and approvals.--
The Administrator shall prioritize the processing and
approval of applications for a loan or financing described in
paragraph (2)(A) by, and disbursement of funds under a loan
or financing described in paragraph (2)(A) to, covered
nonprofit child care providers that are within the same
metropolitan statistical area (as defined by the Office of
Management and Budget) as a military installation (as defined
in section 2801(c) of title 10, United States Code) within
the United States.''.
(d) Reporting.--
(1) Definition.--In this subsection, the term ``covered
nonprofit child care provider'' has the meaning given the
term in paragraph (10) of section 3(a) of the Small Business
Act (15 U.S.C. 632(a)), as added by subsection (b).
(2) Requirement.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter, the
Administrator of the Small Business Administration shall
submit to Congress a report that contains--
(A) for the year covered by the report--
(i) the number of loans and financings made under section
7(a) of the Small Business Act (15 U.S.C. 636(a)) to covered
nonprofit child care providers;
(ii) the amount of the loans and financings described in
clause (i);
(iii) the number of loans and financings provided under
title V of the Small Business Investment Act of 1958 (15
U.S.C. 695 et seq.) to covered nonprofit child care
providers; and
(iv) the amount of the loans and financings described in
clause (iii); and
(B) any other information determined relevant by the
Administrator.
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