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Stauber Introduces Bipartisan Child Care Expansion Bill

February 7, 2020

WASHINGTON, D.C. – This week, Congressman Pete Stauber (R-MN-08) and Congresswoman Susie Lee (D-NV-03) introduced the bipartisan Small Business Child Care Investment Act, which would grant non-profit child care providers access to the same types of Small Business Administration (SBA) loans available to for-profit businesses.

Of this legislation, Congressman Stauber stated, "With more and more parents choosing to dually work and raise a family, child care deserts are hurting families across the nation now more than ever. Those in rural America are particularly impacted by this problem, and we cannot continue to ignore those who choose to live in our rural communities. The Small Business Child Care Investment Act will allow non-profit child care providers to help our communities that are suffering by giving them access to SBA loans. These loans will go a long way in helping to open new child care centers and providing for families that want to participate in the workforce."

Congresswoman Lee stated, "Over half of American families lack reasonable access to child care. Two out of every three children in Nevada live in a household where their parents are working full-time, but because most families don't have nearly enough affordable child care options, juggling a full-time job and caring for your kids becomes almost impossible. Not only does the Small Business Child Care Investment Act expand child care access for families on a budget, it helps child care providers expand their businesses, hire more employees, and invest back into their local economies. Republicans and Democrats in Congress and throughout the country agree that we need to expand early education and child care opportunities, and that's why Congressman Stauber and I came together across party lines to put the needs of American families first."

First Five Years Fun Executive Director, Sarah Rittling, stated,"Non-profit child care providers offer a critical service to families across the country, but many often face barriers that prevent them from establishing or expanding care that has proven to have a positive impact on a young child's development and future success in and out of the classroom. It is important, now more than ever, that we find innovative solutions that ensure these programs are available to all families. We are pleased to see Congresswoman Lee and Congressman Stauber working together on a bipartisan proposal that would expand access to affordable, quality child care across the country by allowing non-profit providers to access the same financial resources available to for-profit providers."

A child care desert is any census tract with more than 50 children under age 5 that contains either no child care providers or so few options that there are more than three times as many children as licensed child care slots.

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Currently, in the state of Minnesota, 26% of people live in a
child care desert with a majority of those living in low-income
households.

Background:

  • 51% of Americans live in a child care desert.
  • The average annual cost of child care in Minnesota for an infant in a child care center is $16,120, which is 15.3% of the median income household.
  • Like many businesses, child care providers face significant start-up, operations, maintenance, and capital projects costs. With limited access to SBA programs, these costs serve as barriers for providers looking to establish, expand, or improve their operations.

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