Representative Susan Wild (PA-07) has co-sponsored the Small Business Child Care Investment Act. This bipartisan and bicameral legislation would make non-profit child care providers that are small businesses eligible to participate in all loan programs available through the Small Business Administration (SBA) – the same opportunity currently provided to for-profit providers –thereby supporting these small businesses in expanding the availability of affordable, high-quality child care to more working families. Around half of families in the United States live in “child care deserts”, with few options for licensed child care.

This is an even greater problem for rural areas, low-income, and minority communities. The legislation is led by U.S. Senators Jacky Rosen (D-NV), Joni Ernst (R-IA) and Representatives Susie Lee (D-NV) and Pete Stauber (R-MN).

“The child care crisis facing families touches upon every part of our economic recovery from COVID-19, and tackling this issue will not only help providers keep the staff they need to remain open, but ensure that parents, including the mothers bearing the brunt of this crisis, have the resources they need to return to the workforce as well,” Wild said. “The bipartisan, bicameral nature of this legislation speaks to the broad importance of increasing the availability of quality, affordable child care for working families while also creating jobs.”

The bipartisan Small Business Child Care Investment Act is co-sponsored by Senator Tammy Duckworth (D-IL) and Senator Marco Rubio (R-FL) in the Senate and co-sponsored by Reps. Cindy Axne (D-IA), John Larson (D-CT), John Moolenaar (R-MI), Van Taylor (R-TX), Rodney Davis (R-IL), and Jim Hagedorn (R-MN) in the U.S. House of Representatives.

According to a 2018 report from the Center for American Progress, half of all families lived in child care deserts.

Currently, nonprofit child care providers cannot access the same types of SBA loans as for-profit providers:

• Non-profit providers can only apply for the SBA’s microloan program, which is capped at $50,000 and cannot be used to purchase real estate or for existing debts.

• For-profit providers can access the larger and more flexible loan programs that range up to $5.5 million and can be used for real estate, construction, remodeling, and other expenses critical to maintaining and expanding high-quality child care operations.

The Small Business Child Care Investment Act would:

• Ensure that qualified non-profit providers have equal access to SBA loans that allow providers to invest in and expand their operations, which creates local jobs and gives working families more options for affordable and quality child care;

• Ensure non-profit providers can access the larger and more flexible loan programs that can be used for real estate, construction, remodeling, and other expenses critical to maintaining and expanding high-quality child care operations.

The bipartisan Small Business Child Care Investment Act is endorsed by Save the Children Action Network, First Five Years Fund, the Bipartisan Policy Center, Child Care Aware of America, National Association for the Education of Young Children, National Military Family Association, First Focus Campaign for Children, National Head Start Association, the Guinn Center for Policy Priorities of Nevada, Children’s Advocacy Alliance of Nevada, United Way of Southern Nevada, and the Reno + Sparks Chamber of Commerce.

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