Child care providers have been hit hard by the COVID-19 pandemic. Congress should stabilize these essential businesses, whose services are necessary to working families, to ensure that they make it through the current public health crisis. Stabilizing child care providers is especially important in communities of color, where businesses may have trouble accessing more institutional forms of capital.
Congress has already allocated $3.5 billion to child care providers in the CARES Act, so this legislation is unnecessary. Child care providers that need assistance now can apply for Paycheck Protection Program (PPP) loans, which are meant to help small businesses like them remain solvent during the pandemic. Additionally, if current lockdowns continue, many families may not need child care providers outside the home — so it’s possible that child care providers won’t be needed to the same degree as before in the new normal.