H.R. 8453: Rural Child Care Facility Expansion Act

This bill, titled the Rural Child Care Facility Expansion Act, aims to create a program to provide low-interest loans to support the renovation, expansion, retrofitting, and adaptation of buildings in order to enhance child care availability in rural areas. Below are the key aspects of the proposed legislation:

Loan Program Establishment

The Secretary of Agriculture will establish a program to issue low-interest loans to eligible child care providers beginning one year after the bill is enacted. The goal is to increase child care options in areas identified as "child care deserts."

Definitions

Key definitions introduced in the bill include:

• Covered Child Care Provider: A service provider primarily engaged in child care for children from birth to compulsory school age, who may also provide services for school-age children, preschool or pre-kindergarten programs, and must comply with state licensing requirements.
• Child Care Desert: Areas where the number of children exceeds the capacity of local licensed child care providers, or where there are no licensed providers at all.
• Rural Community: Any designated area with a population under 20,000; this definition can be modified by the Secretary as necessary.
• Low-Interest Loan: Loans at an interest rate tied to the U.S. Treasury's constant maturity rate, plus an additional fee of 1/8 of 1 percent.

Application and Approval Process

Entities seeking a loan must submit an application to the Secretary, which will be reviewed and responded to within specified timeframes. Notifications of application status will be provided within 30 days, and approvals or disapprovals within 90 days.

The loan will be approved if the applicant is a recognized child care provider and the project will expand child care availability in a qualifying area.

Loan Usage

The funds from the loan can be used for renovation, expansion, and retrofitting of structures aimed at increasing child care services. However, a limit is set where no more than 10% of the loan can be allocated to pre-development activities such as planning or designing new facilities.

Loan Terms

Loans will have terms determined by the Secretary but cannot exceed 25 years. A repayment schedule will also be set by the Secretary.

Reporting Requirements

The Secretary must submit annual reports to Congress detailing the implementation of the loan program, including:

• The number of loans awarded.
• A description of funded activities.
• The number of child care slots created, emphasizing those for low-income families or dual language learners.
• The number of slots preserved that could be at risk of elimination.
• The number of staff employed by providers receiving loans.
• Demographic data about communities served.
• The number of pre-kindergarten providers supported.

Relevant Companies

• None found