July 27, 2023
Dear Senators and Members of Congress,
Independent Women’s Voice is the leading national women’s organization dedicated to advancing policies that expand people’s freedom, opportunity, and well-being. On behalf of IWV, I urge you to support the Small Business Child Care Investment Act (S. 673/H.R. 2602), introduced by Senator Jacky Rosen (D-NV), Senator Joni Ernst (R-IA), Representative Susie Lee (D-NV), and Representative Pete Stauber (R-MN). If enacted, this bipartisan legislation will allow non-profit childcare providers to apply for all loan programs available through the Small Business Administration (SBA).
Presently, non-profit childcare providers are ineligible for certain types of Small Business Administration (SBA) loan programs that are available to for-profits. While non-profit providers can apply for the SBA microloan program which is capped at $50,000 and limits how the money can be spent, for-profit providers have the option to apply for more flexible programs that can provide loans up to $5.5 million and can be used for a variety of purposes.
The Small Business Child Care Investment Act would allow qualified non-profit child care providers to access these same types of SBA loans to finance the start-up and operational costs necessary to provide high-quality care.
Child care is the biggest household expense for many families today. Providing working parents, who opt to send their children to day care, with more providers to choose from can help bring these costs down and expand access to quality care that is more affordable.
Furthermore, child care is also a very personal choice and families have different preferences for care. The Small Business Child Care Investment Act could help provide parents with more diverse childcare options so they can make the decision that they feel is best for their families.
We thank Senator Rosen, Senator Ernst, Representative Lee, and Representative Stauber for their leadership on this issue and urge all senators and members of Congress to join them and work toward the swift passage of the Small Business Child Care Investment Act.
Center for Economic Opportunity