[Congressional Record Volume 149, Number 127 (Tuesday, September 16, 2003)]
[Extensions of Remarks]
[Page E1813]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                THE CHILD CARE LENDING PILOT ACT OF 2003

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                    HON. JUANITA MILLENDER-McDONALD

                             of california

                    in the house of representatives

                      Tuesday, September 16, 2003

  Ms. MILLENDER-McDONALD. Mr. Speaker, I rise today to talk about an 
important issue for many working families in this country--access to 
affordable childcare.
  As all parents know, quality childcare is very hard to find, and it 
is also very expensive. It is especially expensive for families with 
low and moderate incomes. According to the Children's Defense Fund, 
childcare for a four-year-old child averages between $4,000 and $6,000 
per year in cities and states around the nation.
  With so many families comprised of two parents who are working, the 
need for childcare has increased dramatically over the last few years, 
and we as a nation need to ensure that the children of these 
hardworking Americans have a safe, reliable, and moderately priced 
place to learn and grow.
  Mr. Speaker, it is for these reasons that I am pleased to introduce 
today, with over twenty-five of my colleagues, the ``Child Care Lending 
Pilot Act of 2003.'' This legislation will create a three-year pilot 
program that allows small, non-profit childcare businesses to access 
financing through the Small Business Administration's Certified 
Development Company (CDC)/504 loan program.
  As a Ranking Member of the House Committee on Small Business, I 
believe the SBA's 504 loan program is the perfect vehicle to expand the 
availability of affordable, quality childcare in this country.
  Currently, only for-profit childcare businesses are eligible for 504 
loans, yet in many states, the majority of childcare is delivered 
through nonprofit providers. In addition, non-profits are often the 
only daycare providers in low-income communities.
  Mr. Speaker, The Child Care Lending Pilot Act will provide licensed 
nonprofit childcare providers access to desperately needed funding to 
start new centers with loan dollars that may not ordinarily be 
available without the incentive of a guarantee from the SBA.
  The 504 program is an appropriate vehicle for this initiative because 
it was created to spur economic development and rebuild communities.
  Financing through the 504 program will encourage the establishment 
and viability of childcare businesses because the program requires the 
borrower to only put down between 10-20 percent of the loan, with fixed 
interest rates for up to 20 years.
  Furthermore, the borrowers and lenders who participate in the 504 
program cover the costs through program fees, which means there is no 
appropriation required to cover these loans.
  Mr. Speaker, our children, all of our, children, deserve the same 
quality of care no matter where they live, and I know that this 
legislation is a strong step in leveling the playing field for parents 
in low-income communities who simply wish the best for their children.
  I hope that my colleagues would support this effort, and ensure that 
affordable childcare is available to all families.

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