A Democratic bill with 2 Republican cosponsors · See all 3 cosponsors
Last activity — Placed on Senate Legislative Calendar under General Orders. Calendar No. 9.
Cleared committee, waiting for its first floor vote
A committee approved it and it is on the calendar of the chamber it started in.
This is further than most bills get, and still no promise of a vote: the calendar is a queue, and the majority leadership decides what is called. A bill can sit here until the Congress ends.
Its path through Congress
- Introduced
- On Calendar
What this bill would do
The Small Business Child Care Investment Act seeks to allow certain nonprofit child care providers to access specific Small Business Administration loan programs. It defines a "covered nonprofit child care provider" as an organization that meets specific licensing, tax-exempt, and size standards. These organizations must comply with criminal background check requirements for employees and regular volunteers. The bill classifies these nonprofits as small business concerns for the purpose of 7(a) and 504 loan programs. Loans must be made through financial institutions on a deferred basis rather than through direct lending. Finally, the Act requires annual reporting to Congress regarding the number and amount of loans provided to these organizations.
Yes· 3 of 6
- Scored +5
Does this make it easier to run a small business?
The bill expands the definition of a small business concern to include specific nonprofit child care providers, facilitating access to capital.
- Scored +4
Would business owners be better off under this?
Nonprofit leaders acting as business owners gain access to critical SBA loan programs.
- Scored +3
Is this likely to create jobs?
By providing access to SBA 7(a) and 504 loan programs, the bill helps nonprofit child care providers expand their operations and staffing.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Access to Capital for Child Care Organizations: By deeming covered nonprofit child care providers as "small business concerns," the bill allows them to participate in 7(a) and 504 loan programs (Section 2(a)(B)(i) and Section 2(b)(2)(A)). This provides a mechanism for these organizations to obtain financing.
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Lower Barriers for Smaller Loans: For loans that are not more than $500,000, the provider may not be required to obtain a guarantee of timely payment from another person or entity (Section 2(a)(B)(iii)(ii) and Section 2(b)(2)(C)(ii)).
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Protection of First Amendment Associations: The Administrator is prohibited from determining a provider is ineligible based on an association with an entity protected by the First Amendment (Section 2(a)(C)(i) and Section 2(b)(3)(A)).
Potential Negative Impacts for People
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Strict Compliance Burdens: To qualify, organizations must ensure that every employee and regular volunteer complies with specific criminal background check requirements (Section 2(a)(A)(ii)).
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Financial Requirements for Large Loans: If a covered nonprofit child care provider seeks a loan or financing of more than $500,000, they are required to obtain a guarantee of timely payment from another person or entity (Section 2(a)(B)(iii)(I) and Section 2(b)(2)(C)(i)).
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Restrictions on Fund Usage: Organizations receiving these loans are prohibited from using the proceeds for any religious activity protected under the First Amendment (Section 2(a)(C)(ii) and Section 2(b)(3)(B)).
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Prohibition on Direct Lending: The Small Business Administration is prohibited from making direct loans or immediate participation agreements; all loans must be made in cooperation with banks or other financial institutions (Section 2(a)(B)(ii) and Section 2(b)(2)(B)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Economy And Finance
- Does this make it easier to run a small business? — The bill expands the definition of a small business concern to include specific nonprofit child care providers, facilitating access to capital. Is this likely to create jobs? — By providing access to SBA 7(a) and 504 loan programs, the bill helps nonprofit child care providers expand their operations and staffing.
- Demographic And Interest Groups
- Would business owners be better off under this? — Nonprofit leaders acting as business owners gain access to critical SBA loan programs. Would people in cities be better off under this? — Increased financing for childcare providers can support childcare availability in populated areas.
- Governance And Ideology
- Does this make what the government does easier for the public to see? — The bill requires annual reporting to Congress regarding the number and amount of loans provided to these organizations.
- Social Issues And Justice
- Does this make child care cost less? — Increasing access to capital for child care providers can help stabilize and potentially expand childcare services.
- 2/10/2025
- Committee on Small Business and Entrepreneurship. Reported by Senator Ernst with an amendment. Without written report.
- Placed on Senate Legislative Calendar under General Orders. Calendar No. 9.
- 2/5/2025
- Committee on Small Business and Entrepreneurship. Ordered to be reported with an amendment favorably.
- 1/28/2025
- Read twice and referred to the Committee on Small Business and Entrepreneurship.
- 3 Cosponsors added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Joni ErnstRepublican · Iowa
James RischRepublican · Idaho
Mark WarnerDemocrat · Virginia