[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 2661 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 2661

To create a 3-year pilot program that makes small, nonprofit child care 
   businesses eligible for loans under title V of the Small Business 
                        Investment Act of 1958.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 2, 2009

   Mr. Kerry introduced the following bill; which was read twice and 
    referred to the Committee on Small Business and Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
To create a 3-year pilot program that makes small, nonprofit child care 
   businesses eligible for loans under title V of the Small Business 
                        Investment Act of 1958.

    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 
2009''.

SEC. 2. DEFINITIONS.

    In this Act--
            (1) the terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator 
        thereof, respectively;
            (2) the term ``program'' means the loan program under 
        section 502(b)(1)(B) of the Small Business Investment Act of 
        1958, as added by this Act;
            (3) the term ``small business concern'' has the meaning 
        given the term ``small-business concern'' in section 103 of the 
        Small Business Investment Act of 1958 (15 U.S.C. 662); and
            (4) the term ``State'' has the meaning given that term in 
        section 103 of the Small Business Investment Act of 1958 (15 
        U.S.C. 662).

SEC. 3. CHILD CARE LENDING PILOT PROGRAM.

    (a) In General.--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 may, in 
                addition to its'' and inserting the following:
    ``(a) Authorization.--The Administration may, in addition to the'';
                    (B) by striking ``and such loans'' and inserting 
                ``. Such loans''; and
                    (C) by striking ``: Provided, however, That the 
                foregoing powers shall be subject to the following 
                restrictions and limitations:'' and inserting a period;
            (2) by inserting before paragraph (1) the following:
    ``(b) Restrictions and Limitations.--The authority under subsection 
(a) shall be subject to the following restrictions and limitations:''; 
and
            (3) in subsection (b)(1), as so designated--
                    (A) by striking ``The proceeds'' and inserting the 
                following:
                    ``(A) In general.--The proceeds'';
                    (B) by striking ``such loan'' and inserting ``loan 
                described in subsection (a)''; and
                    (C) by adding at the end the following:
                    ``(B) Loans to small, nonprofit child care 
                businesses.--
                            ``(i) In general.--Notwithstanding 
                        paragraph (1), the proceeds of any loan 
                        described in subsection (a) may be used by a 
                        development company to assist a small, 
                        nonprofit child care business, if--
                                    ``(I) the loan is used for a sound 
                                business purpose that has been approved 
                                by the Administrator;
                                    ``(II) the small, nonprofit child 
                                care business meets all of the 
                                eligibility requirements applicable to 
                                for-profit businesses under this title, 
                                except for status as a for-profit 
                                business;
                                    ``(III) 1 or more individuals has 
                                personally guaranteed the loan;
                                    ``(IV) the small, nonprofit child 
                                care business has clear and singular 
                                title to the collateral for the loan; 
                                and
                                    ``(V) the small, nonprofit child 
                                care business has sufficient cash flow 
                                from the operations of the business to 
                                meet the obligations on the loan and 
                                the normal and reasonable operating 
                                expenses of the business.
                            ``(ii) Limitation on volume.--Not more than 
                        7 percent of the total number of loans 
                        guaranteed in any fiscal year under this title 
                        may be used for purposes described in this 
                        subparagraph.
                            ``(iii) Definition.--In this subparagraph, 
                        the term `small, nonprofit child care business' 
                        means an establishment that--
                                    ``(I) is organized in accordance 
                                with section 501(c)(3) of the Internal 
                                Revenue Code of 1986;
                                    ``(II) is primarily engaged in 
                                providing child care for infants, 
                                toddlers, pre-school, or pre-
                                kindergarten children (or any 
                                combination thereof), and may provide 
                                care for older children when the 
                                children are not in school and offer 
                                pre-kindergarten educational programs;
                                    ``(III) including its affiliates, 
                                has--
                                            ``(aa) a tangible net worth 
                                        of not more than $7,000,000; 
                                        and
                                            ``(bb) an average net 
                                        income (excluding any carryover 
                                        losses) for the 2 completed 
                                        fiscal years before the date of 
                                        the application of not more 
                                        than $2,500,000; and
                                    ``(IV) is licensed as a child care 
                                provider by the State in which the 
                                establishment is located.''.
    (b) Sunset.--
            (1) In general.--Effective October 1, 2012, section 
        502(b)(1) of the Small Business Investment Act of 1958 (15 
        U.S.C. 696(b)(1)) is amended--
                    (A) by striking subparagraph (B); and
                    (B) by striking ``Use of proceeds.--'' and all that 
                follows through ``The proceeds'' and inserting ``Use of 
                proceeds.--The proceeds''.
            (2) Applicability.--Notwithstanding paragraph (1), section 
        502(b)(1)(B) of the Small Business Investment Act of 1958, as 
        added by this Act, shall apply to any loan authorized under 
        that subparagraph that is applied for, approved, or disbursed 
        during the period beginning on the date of enactment of this 
        Act and ending on September 30, 2012.

SEC. 4. REPORTS.

    (a) Small Business Administration.--
            (1) In general.--Not later than 6 months after the date of 
        enactment of this Act, and every 6 months thereafter until 
        March 31, 2013, the Administrator shall submit a report on the 
        implementation of the program to--
                    (A) the Committee on Small Business and 
                Entrepreneurship of the Senate; and
                    (B) the Committee on Small Business of the House of 
                Representatives.
            (2) Contents.--Each report under paragraph (1) shall 
        contain--
                    (A) the date on which the program is implemented;
                    (B) the date on which the rules are issued under 
                section 5; and
                    (C) the number and dollar amount of loans under 
                section 502 of the Small Business Investment Act of 
                1958 (15 U.S.C. 696) applied for, approved, and 
                disbursed during the 6-month period before the date of 
                the report--
                            (i) to assist nonprofit child care 
                        businesses under the program; and
                            (ii) to assist for-profit child care 
                        businesses.
    (b) Government Accountability Office.--
            (1) In general.--Not later than March 31, 2012, the 
        Comptroller General of the United States shall submit a report 
        on the program to--
                    (A) the Committee on Small Business and 
                Entrepreneurship of the Senate; and
                    (B) the Committee on Small Business of the House of 
                Representatives.
            (2) Contents.--The report under paragraph (1) shall contain 
        information gathered during the first 2 years of the program, 
        including--
                    (A) an evaluation of the timeliness of the 
                implementation of the program;
                    (B) a description of the effectiveness and ease 
                with which development companies, lenders, and small 
                business concerns have participated in the program;
                    (C) a description and assessment of how the program 
                was marketed;
                    (D) the number of small child care businesses in 
                each State and in the United States, categorized by 
                status as a for-profit or nonprofit business, that--
                            (i) applied for a loan under section 502 of 
                        the Small Business Investment Act of 1958 (15 
                        U.S.C. 696) (and, for each such business, 
                        whether the business was a new or expanding 
                        small child care business;
                            (ii) were approved for a loan under section 
                        502 of that Act; and
                            (iii) received a loan disbursement under 
                        section 502 of that Act (and, for each such 
                        business, whether the business was a new or 
                        expanding small child care business); and
                    (E) categorized by status as a for-profit or 
                nonprofit business--
                            (i) with respect to small child care 
                        businesses described under subparagraph 
                        (D)(iii), the number of such businesses in each 
                        State, as of the year of enactment of this Act;
                            (ii) the total amount loaned to small child 
                        care businesses under section 502 of the Small 
                        Business Investment Act of 1958 (15 U.S.C. 
                        696);
                            (iii) the total number of loans to small 
                        child care businesses under section 502 of that 
                        Act;
                            (iv) the average amount and term of loans 
                        to small child care businesses under section 
                        502 of that Act;
                            (v) the currency rate, delinquencies, 
                        defaults, and losses of loans to small child 
                        care businesses under section 502 of that Act;
                            (vi) the number and percent of children who 
                        receive subsidized assistance that are served 
                        using a loan to a small child care business 
                        under section 502 of that Act; and
                            (vii) the number and percent of children 
                        who are low income that are served using a loan 
                        to a small child care business under section 
                        502 of that Act.
            (3) Access to information.--
                    (A) In general.--The Administrator shall collect 
                and maintain such information as may be necessary to 
                carry out this subsection from development companies 
                and small child care businesses, and such companies and 
                businesses shall comply with a request for information 
                from the Administration for that purpose.
                    (B) Provision of information to government 
                accountability office.--The Administration shall 
                provide information collected under this paragraph to 
                the Comptroller General of the United States for 
                purposes of the report required under this subsection.

SEC. 5. RULEMAKING AUTHORITY.

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