Child Care Lending Pilot Act of 2003

        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3099 Introduced in House (IH)]

108th CONGRESS
1st Session
H. R. 3099

To amend the Small Business Investment Act of 1958 to establish a pilot
program for lending to small, nonprofit child care businesses.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

September 16, 2003

Ms. Millender-McDonald (for herself, Mr. Conyers, Mr. Towns, Mrs.
Christensen, Ms. Lee, Mr. Cummings, Ms. Kilpatrick, Ms. Carson of
Indiana, Ms. Corrine Brown of Florida, Mr. Scott of Virginia, Mr.
Frost, Mr. Payne, Mr. Clay, Mr. Meehan, Mrs. Jones of Ohio, Ms.
Jackson-Lee of Texas, Mr. Thompson of Mississippi, Ms. Norton, Mr.
Frank of Massachusetts, Mr. Tierney, Mr. Engel, Mr. Wynn, Mr. Lynch,
Mr. Olver, Mr. Markey, Mr. Neal of Massachusetts, Mr. McGovern, Mr.
Ballance, Mr. Serrano, Ms. McCollum, and Mr. Capuano) introduced the
following bill; which was referred to the Committee on Small Business

_______________________________________________________________________

A BILL

To amend the Small Business Investment Act of 1958 to establish a pilot
program for lending to small, nonprofit child care businesses.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Child Care Lending Pilot Act of
2003''.

SEC. 2. CHILD CARE LENDING PILOT PROGRAM.

(a) Loans Authorized.--Notwithstanding section 502(1) of the Small
Business Investment Act of 1958, the proceeds of any loan described in
section 502 of such Act may be used by the certified development
company to provide loans to small, nonprofit child care businesses,
provided that--
(1) the loan will be used for a sound business purpose that
has been approved by the Administrator of the Small Business
Administration (hereafter in this section referred to as the
Administrator);
(2) each such business meets the eligibility requirements
applicable to for-profit businesses receiving a similar loan,
except for status as a for-profit business;
(3) 1 or more individuals have personally guaranteed the
loan;
(4) the small, non-profit child care business has clear and
singular title to the collateral for the loan; and
(5) the small, non-profit child care business has
sufficient cash flow from its operations to meet its
obligations on the loan and its normal and reasonable operating
expenses.
(b) Limitation on Volume.--Not more than 7 percent of the total
number of loans guaranteed in any fiscal year under title V of the
Small Business Investment Act of 1958 may be awarded under the program
described in this section.
(c) Small, Nonprofit Child Care Business.--For purposes of this
section, the term ``small, non-profit child care business'' means an
organization that--
(1) 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;
(2) is primarily engaged in providing child care for
infants, toddlers, pre-school, or pre-kindergarten children (or
any combination thereof), may provide care for older children
when they are not in school, and may offer pre-kindergarten
educational programs;
(3) including its affiliates, has tangible net worth that
does not exceed $7,000,000, and has average net income
(excluding any carryover losses) for the preceding 2 completed
fiscal years that does not exceed $2,500,000; and
(4) is licensed as a child care provider by the District of
Columbia, the insular area, or the State, in which it is
located.
(d) Termination.--No loan shall be made under this section after
September 30, 2006.
(e) Reports.--
(1) Small business administration.--Not later than 6 months
after the date of the enactment of this Act, and every 6 months
thereafter until September 30, 2006, the Administrator shall
submit a report to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives regarding the
implementation of the loan program described in this section.
Each such report shall include--
(A) the date on which the loan program is
implemented;
(B) the date on which the rules are issued pursuant
to subsection (f); and
(C) the number and dollar amount of loans under the
program applied for, approved, and disbursed during the
previous 6 months.
(2) General accounting office.--Not later than March 31,
2006, the Comptroller General of the United States shall submit
a report to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives regarding the
assistance provided under the loan program established by this
section. Such report shall include information regarding the
first 2 years of the loan program, including--
(A) an evaluation of the timeliness of the
implementation of the loan program;
(B) a description of the effectiveness and ease
with which certified development companies, lenders,
and small businesses have participated in the loan
program;
(C) a description and assessment of how the loan
program was marketed;
(D) by location (State, insular area, and District
of Columbia) and in total, the number of small,
nonprofit child care businesses that--
(i) applied for loans under the program
(stated separately for new and expanding child
care providers); and
(ii) received loan disbursements under the
program (stated separately for new and
expanding child care providers);
(E) the total amount loaned to such businesses
under the program;
(F) the total number of loans made to such
businesses under the program;
(G) the average loan amount and term of loans made
under the program;
(H) the currency rate, delinquencies, defaults, and
losses of the loans made under the program;
(I) the number and percent of children served
through the program who receive subsidized assistance;
and
(J) the number and percent of children served
through the program who are low income.
(3) Access to information.--
(A) Collection.--The Administrator shall collect
and maintain such information as may be necessary to
carry out paragraph (2) from certified development
centers and child care providers, and such centers and
providers shall comply with a request for information
from the Administrator for that purpose.
(B) Provision of information to gao.--The
Administrator shall provide information collected under
subparagraph (A) to the Comptroller General of the
United States for purposes of the report required by
paragraph (2).
(f) Rulemaking Authority.--Not later than 120 days after the date
of the enactment of this Act, the Administrator shall issue final rules
to carry out the loan program authorized by this section.
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