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Small Business Loans aren't the answer for child care

Following a critical but insufficient direct child care investment in the last coronavirus stimulus package, many child care stakeholders have high hopes that the new Paycheck Protection Program (PPP) loans through the Small Business Administration (SBA) will be a lifeline for providers struggling with low enrollment or temporary closures. While the PPP's design was already going to be a challenge for child care providers, the chaos and confusion that surrounded the program's launch—particularly around which lenders were offering loans and which businesses could apply—made it glaringly clear that small business loans are not the answer the child care field is seeking. In fact, the loan program is likely to leave the providers who are most vulnerable to closure empty-handed and only deepen existing inequities in the system, with lasting consequences for child care providers and families alike. CLASP calls on Congress to dedicate $50 billion in accessible, flexible funding for child care to help providers weather this crisis—and reopen so we can all go back to work when the crisis is over. (author abstract)
Resource Type:
Fact Sheets & Briefs
United States

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