S.273 - Small Business Child Care Investment Act (119th Congress)
Summary
S.273, the Small Business Child Care Investment Act, aims to allow nonprofit child care providers to participate in certain loan programs of the Small Business Administration (SBA). The bill amends the Small Business Act and the Small Business Investment Act of 1958 to include covered nonprofit child care providers as eligible for SBA loans and financings. It also sets specific conditions, such as requiring loan guarantees for amounts over $500,000 and prohibiting the use of loan proceeds for religious activities protected by the First Amendment.
Expected Effects
The bill's passage would likely increase access to capital for nonprofit child care providers, potentially leading to expanded child care services. It also mandates annual reporting to Congress on the loans and financings provided to these entities. This could lead to more child care options for families and support the child care industry.
Potential Benefits
- Increased access to capital for nonprofit child care providers.
- Potential expansion of child care services, addressing a critical need for working families.
- Support for the child care industry, which is vital for economic productivity.
- Requirement for criminal background checks for employees and volunteers, enhancing child safety.
- Annual reporting to Congress, promoting transparency and accountability.
Potential Disadvantages
- Potential for increased government spending through loan guarantees.
- Compliance costs for nonprofit child care providers to meet eligibility requirements.
- The prohibition on using funds for religious activities may limit some providers' participation.
- The requirement for loan guarantees over $500,000 could be a barrier for some organizations.
- Possible administrative burden for the SBA in managing and overseeing these new loan programs.
Constitutional Alignment
The bill appears to align with the Constitution, particularly the General Welfare Clause (Preamble). It aims to promote the well-being of families by supporting child care services. The bill also addresses the First Amendment by specifying that loan proceeds cannot be used for religious activities, ensuring separation of church and state.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).