S. 2549Senate116th Congress (2019-2021)In Committee

Small Business Child Care Investment Act

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Updated April 14, 2026 at 8:27 AM UTC

The Small Business Child Care Investment Act expands the Small Business Administration’s loan programs to include nonprofit child‑care providers that meet certain licensing, tax‑exempt and background‑check requirements. By treating these providers as small‑business concerns, the bill lets them apply for SBA loans, loan guarantees, and to receive loans that the SBA guarantees for other small businesses. This affects nonprofit organizations that primarily care for children from birth to school age and may also offer preschool or after‑school programs.

Key Provisions

Defines a “covered nonprofit child care provider” as a 501(c)(3) organization that complies with state licensing, meets criminal background‑check standards for staff and volunteers, and primarily serves children from birth to compulsory school age, possibly offering preschool or after‑school care.
Specifies that any covered nonprofit child care provider is deemed a small‑business concern for all SBA loan and guarantee programs, allowing them to receive direct SBA loans, have SBA guarantee their loans, or obtain loans from lenders that are guaranteed by the SBA.

Legislative Activity

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3 earlier actions

SenateCommittee Latest Action

Committee on Small Business and Entrepreneurship. Hearings held.

Small Business and Entrepreneurship Committee

July 23, 2020

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SenateIntro Referral

Introduced in Senate

September 25, 2019

SenateIntro Referral

Read twice and referred to the Committee on Small Business and Entrepreneurship.

Small Business and Entrepreneurship Committee

September 25, 2019

SenateCommittee

Committee on Small Business and Entrepreneurship. Hearings held. Hearings printed: S.Hrg. 116-517.

Small Business and Entrepreneurship Committee

July 23, 2020

SenateCommittee

Committee on Small Business and Entrepreneurship. Hearings held.

Small Business and Entrepreneurship Committee

July 23, 2020

Bill Text

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Introduced in SenateIssued September 25, 2019

116th CONGRESS

1st Session

S. 2549

IN THE SENATE OF THE UNITED STATES

September 25, 2019

Ms. Rosen (for herself and Ms. Ernst) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship

A BILL

To allow nonprofit child care providers to participate in the loan programs of the Small Business Administration.

Short title

This Act may be cited as the Small Business Child Care Investment Act.

Small business loans for nonprofit child care providers

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; and

(III)

is primarily engaged in providing child care for children from birth to compulsory school age;

(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)); and

(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.

(B)

Eligibility for loan programs

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 any program under this Act or the Small Business Investment Act of 1958 (15 U.S.C. 661 et seq.) under which—

(i)

the Administrator may make loans to small business concerns;

(ii)

the Administrator may guarantee timely payment of loans to small business concerns; or

(iii)

the recipient of a loan made or guaranteed by the Administrator may make loans to small business concerns.