Bills · S 273
REPORTED· 119TH CONGRESS
Senate BillS 273Preschool educationChild care and development
Small Business Child Care Investment Act
INTRO JAN 28· LAST ACTION FEB 10
READING
7MIN
COSPONSORS
3BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Reported, not passed
LEGISLATIVE PROGRESS
STEP 3 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because access to affordable and high-quality child care is a major challenge for many American families, directly impacting parents' ability to work and children's early development. Nonprofit child care providers often struggle to secure the necessary funding to start, expand, or improve their facilities. By opening up SBA loan programs to eligible nonprofits, this bill could provide a critical financial pathway, helping these centers grow and meet the high demand for child care services.
If this bill becomes law, it could lead to more child care options and potentially improve the quality of care as providers invest in better facilities and resources. This could ease the current child care shortage in many communities, supporting working families and contributing to the broader economy. If the bill does not pass, nonprofit child care providers will continue to rely on their existing funding streams, which may be insufficient to address the growing need for child care.
KEY PROVISIONS
5AI-extractedPROVISION 01
Allows certain nonprofit child care providers to apply for loans under the Small Business Administration's (SBA) 7(a) and 504 loan programs.
This provision opens up significant new funding opportunities for nonprofits that were previously largely excluded from these government-backed business loans.
PROVISION 02
Establishes a detailed definition for "covered nonprofit child care provider," requiring state licensing, 501(c)(3) tax-exempt status, care for children from birth to compulsory school age, adherence to SBA size standards, and compliance with criminal background check requirements for staff and volunteers.
This ensures that only legitimate, regulated, and responsible organizations providing essential child care services can access these federal loan programs.
PROVISION 03
Stipulates that loans to nonprofit child care providers must be made through private banks or financial institutions with an SBA guarantee, explicitly prohibiting direct lending by the SBA.
This maintains the SBA's role as a guarantor, leveraging private sector lending while reducing direct government risk and administrative burden.
PROVISION 04
Requires a third-party guarantee for any loan to a nonprofit child care provider that exceeds $500,000.
This measure provides additional financial security for larger loans, reducing the risk exposure for the SBA and participating lenders.
PROVISION 05
Prohibits the use of loan proceeds for religious activities, even if the eligible nonprofit provider is associated with a religious entity.
This provision aims to ensure that public funds are not used to support religious instruction or worship, addressing concerns about the separation of church and state.
SPONSORSHIP
1 + 3
D· Nevada
YRS IN OFFICE
9
BILLS LED
77
COSPONSOR BREAKDOWNBIPARTISAN · 66%
DEM 1 REP 2 IND 0
ACTION TIMELINE
5 EVENTSFEB 10
Committee on Small Business and Entrepreneurship. Reported by Senator Ernst with an amendment. Without written report.
FEB 10
Placed on Senate Legislative Calendar under General Orders. Calendar No. 9.
FEB 5
Committee on Small Business and Entrepreneurship. Ordered to be reported with an amendment favorably.
JAN 28
Introduced in Senate
BILL INFO
TypeSenate Bill
NumberS 273
Congress119th
StatusReported
IntroducedJan 28, 2025
Last actionFeb 10, 2025
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REPORTED· 119TH CONGRESS · SMALL BUSINESS AND ENTREPRENEURSHIP COMMITTEE · INTRODUCED JAN 28, 2025
Senate BillS 273Preschool educationChild care and development
Small Business Child Care Investment Act
INTRODUCED JAN 28, 2025· LAST ACTION FEB 10, 2025
PASSAGE CHANCES
—%
READING
7 min
COSPONSORS
3
COMPLEXITY
Moderate
