To create a 3-year pilot program that makes small, non-profit child care businesses eligible for SBA 504 loans.

April 8, 2003

Mr. KERRY (for himself, Mr. HARKIN, Ms. LANDRIEU, Mr. PRYOR, Mr. LIEBERMAN, Mr. DASCHLE, Mr. BINGAMAN, and Mr. JOHNSON) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship

To create a 3-year pilot program that makes small, non-profit child care businesses eligible for SBA 504 loans.

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 BUSINESS LOAN PROGRAM.

(a) LOANS AUTHORIZED- Section 502 of the Small Business Investment Act of 1958 (15 U.S.C. 696) is amended--

(1) in the matter preceding paragraph (1)--

(A) by striking `The Administration' and inserting the following:

`(a) AUTHORIZATION- The Administration';

(B) by striking `and such loans' and inserting `. Such loans';

(C) by striking `: Provided, however, That the foregoing powers shall be subject to the following restrictions and limitations:' and inserting a period; and

(D) by adding at the end the following:

`(b) RESTRICTIONS AND LIMITATIONS- The authority under subsection (a) shall be subject to the following restrictions and limitations:'; and

(2) in paragraph (1)--

(A) by inserting after `USE OF PROCEEDS- ' the following:

`(A) IN GENERAL- '; and

(B) by adding at the end the following:

`(B) LOANS TO SMALL, NON-PROFIT CHILD CARE BUSINESSES- The proceeds of any loan described in subsection (a) may be used by the borrower to assist, in addition to other eligible small business concerns, small, non-profit child care businesses, provided that--

`(i) the loan will be used for a sound business purpose that has been approved by the Administration; and

`(ii) each such business receiving financial assistance meets all of the same eligibility requirements applicable to for-profit businesses under this title, except for status as a for-profit business.'.

(b) REPORTS-

(1) SMALL BUSINESS ADMINISTRATION-

(A) IN GENERAL- Not later than 6 months after the date of enactment of this Act, and every 6 months thereafter until September 30, 2006, the Administrator of the Small Business Administration shall submit a report on the implementation of the program under subsection (a) to--

(i) the Committee on Small Business and Entrepreneurship of the Senate; and

(ii) the Committee on Small Business of the House of Representatives.

(B) CONTENTS- The report under subparagraph (A) shall contain--

(i) the date on which the program is implemented;

(ii) the date on which the rules are issued pursuant to subsection (c); and

(iii) the number and dollar amount of loans under the program applied for, approved, and disbursed during the previous 6 months.

(2) GENERAL ACCOUNTING OFFICE-

(A) IN GENERAL- Not later than March 31, 2006, the Comptroller General of the United States shall submit a report on the child care small business loans authorized by section 502(b)(1)(B) of the Small Business Investment Act of 1958, as added by this Act, to--

(i) the Committee on Small Business and Entrepreneurship of the Senate; and

(ii) the Committee on Small Business of the House of Representatives.

(B) CONTENTS- The report under subparagraph (A) shall contain information gathered during the first 2 years of the loan program, including--

(i) an evaluation of the timeliness of the implementation of the loan program;

(ii) a description of the effectiveness and ease with which Certified Development Companies, lenders, and small businesses have participated in the loan program;

(iii) a description and assessment of how the loan program was marketed;

(iv) the number of child care small businesses, categorized by status as a for-profit or non-profit business and a new business or an expanded business, that--

(I) applied for loans under the program;

(II) were approved for loans under the program; and

(III) received loan disbursements under the program.

(v) of the businesses under clause (iv)(III)--

(I) the number of such businesses in each State;

(II) the total amount loaned to such businesses under the program; and

(III) the average loan amount and term.

(c) RULEMAKING AUTHORITY- Not later than 120 days after the date of enactment of this Act, the Administrator of the Small Business Administration shall issue final rules to carry out the loan program authorized by section 502(b)(1)(B) of the Small Business Investment Act of 1958, as added by this Act.

(d) SUNSET PROVISION- The amendments made by this section shall remain in effect until September 30, 2006, and shall apply to all loans authorized by section 502(b)(1)(B) of the Small Business Investment Act of 1958, as added by this Act, that are made during the period beginning on the date of enactment of this Act and ending on September 30, 2006.

END