[Congressional Record Volume 155, Number 161 (Monday, November 2, 2009)]
[Senate]
[Page S10992]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KERRY:
  S. 2661. 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; to the Committee on Small 
Business and Entrepreneurship.
  Mr. KERRY. Mr. President, as we explore ways to help the working 
families in America, we should not forget the many working parents who 
face difficulty finding quality, affordable child care. Approximately 6 
out of 10 children are cared for by someone other than their parents on 
a regular basis. And far too many children are left home alone before 
they are ready. Across America, more households than ever are 
struggling to make ends meet, while providing safe, nurturing 
environments for their children to grow up in. For many, child care is 
not a choice, but a necessity. We owe it to America's families to 
increase the availability of quality child care.
  I believe one way to support this goal is to expand financing options 
for non-profit child care centers. That is why I am reintroducing the 
Child Care Lending Pilot Act, which establishes a three-year pilot 
program enabling small, non-profit child care businesses to be eligible 
for the SBA's 504 loans. Under current law, for-profit child care small 
businesses have access to these loans to finance facility expansions 
and building repairs but non-profit centers are shut out. Since the 
majority of child care centers in many states are non-profit, this 
exclusion blocks needed resources from the facilities serving the 
majority of our families. The Child Care Lending Pilot Act addresses 
this problem and allows the centers to better serve the children they 
care for. With low, predictable monthly payments, these non-profit 
centers can improve their buildings and materials without breaking the 
bank or raising fees.
  This industry is not one with high-earnings overall, so access to 
capital is particularly difficult. Balancing the needs of maintaining a 
qualified staff while providing care that families can afford is 
difficult at best. Calling for reductions in operating costs can result 
in decreased safety and quality in the children's environment that 
should be structured to foster their learning and development. The cost 
of child care--ranging anywhere from around $4,000 to over $15,000 a 
year--is highly prohibitive for many families and limited options only 
exacerbate this problem.
  Not only is child care extremely expensive, but there are simply not 
enough spaces. Nearly 14.5 million children under the ages 6 years old 
have working parents and need child care. But there are only an 
estimated 10.8 million legally-operating spaces for both young and 
school-aged children.
  Non-profit child care centers are a resource for America's working 
families and deserve the same opportunities for-profit centers have 
with access to SBA's 504 loans. This is one clear step forward that we 
can take to help solve this problem and invest in our children. I urge 
my colleagues to support this bill.

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