As the nation grapples with the ongoing COVID-19 pandemic, small business owners have been especially hard hit. From navigating government shutdowns and reduced capacity to keeping employees and customers safe, businesses have had to adapt quickly to changing circumstances. But one particular issue has emerged as a top concern among small business owners: access to affordable and reliable childcare. In this article, we will explore what Iowa Senator Joni Ernst is hearing from small business owners regarding childcare and the potential steps policymakers can take to address this critical issue.
Childcare Challenges in Middle America and a Path Forward
Senator Joni Ernst has been hearing directly from the people of Iowa about their need for more childcare options. Families across the state struggle to find affordable childcare, and small business owners are on a mission to find more employees with flexible schedules. Childcare availability remains a workforce issue in both metropolitan areas and rural communities, and it has a direct impact on employers and economic growth.
As the Ranking Member of the Senate Small Business Committee, Senator Ernst has a unique opportunity to bring the stories of middle America straight to Washington D.C. Senator Ernst reminds her colleagues of the young moms who are starting their side business and need childcare to make their schedule work, or the employers who are looking to ease the childcare needs of their workforce. These stories are what help her identify a path forward to ensure that families, in all four corners of the state, have access to quality, affordable childcare.
One commonsense solution to increase childcare is Senator Ernst’s bipartisan bill that allows small, non-profit childcare providers to participate in Small Business Administration (SBA) loan programs. The SBA currently offers multiple programs to help small businesses access capital, but only for-profit childcare centers are eligible. The Childcare Small Business Investment Act would make non-profit childcare providers, including religious non-profits, eligible for these SBA loans, as long as they are licensed by the state and their employees have had criminal background checks. Local churches can serve as critical providers in rural communities, and this legislation allows for these providers to apply for SBA loans, with the long-term goal of bringing more childcare slots to these communities.
Governor Reynolds and the Iowa legislature are also tackling childcare issues at the state level. They are addressing reimbursement rates, the cliff effect in the Child Care Assistance Program, and investing state dollars to create additional provider options for families. Their leadership and collaborative work have brought solutions to working families and providers.
Senator Ernst will continue to take on the challenge to cut red tape, minimize bureaucracy in agencies, and support practical solutions at the federal level. This work will have a positive impact on our children and our economy for generations to come. Access to quality, affordable childcare is essential for working families, small business owners, and our economy. Senator Ernst, Governor Reynolds, and the Iowa legislature have recognized this and are taking steps to address it.
