(2) “Fund” means the Child Care Capital Support Revolving Loan Fund.

(3) “Rural community” has the meaning stated in § 2-207 of the State Finance and Procurement Article.

(b) There is a Child Care Capital Support Revolving Loan Fund.

(c) The purpose of the Fund is to provide no-interest loans for capital expenses to child care providers who participate in the Child Care Scholarship Program under § 9.5-113 of this subtitle.

(d) The Department of Commerce shall administer the Fund with support from the Department.

(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7-302 of the State Finance and Procurement Article that shall be available in perpetuity for the purpose of providing loans in accordance with the provisions of this section.

(2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.

(f) The Fund consists of:

(1) Money appropriated in the State budget to the Fund;

(2) Any interest earnings of the Fund;

(3) Repayments of principal and interest from loans made from the Fund; and

(4) Any other money from any other source accepted for the benefit of the Fund.

(g) (1) The Fund may be used only to provide no-interest loans to child care providers for capital expenses related to a child care facility, including:

(i) Acquisition;

(ii) Expansion;

(iii) Renovations; and

(iv) New construction.

(2) (i) Except as provided in subparagraph (ii) of this paragraph, child care providers shall repay loans from the Fund not later than 5 years after receiving a loan from the Fund.

(ii) The Department of Commerce may establish a financial hardship exemption to allow a child care provider additional time to repay a loan from the Fund.

(iii) If a hardship exemption is not granted, the Department of Commerce shall apply its normal policy regarding assisting child care providers with past due loan payments.

(h) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.

(2) Any interest earnings of the Fund shall be credited to the Fund.

(i) (1) The Department of Commerce, in consultation with the Department, shall establish application procedures and eligibility criteria for loans from the Fund, in addition to the requirement that a child care provider be a participant in the Child Care Scholarship Program under § 9.5-113 of this subtitle.

(2) The Department shall prioritize applicant criteria in the following order when providing funding from the Fund:

(i) Child care providers that are located in:

1. Underserved communities; or

2. Areas designated by the Department as areas lacking child care slots;

(ii) Child care providers that are located in rural communities;

(iii) Child care providers that serve primarily low-income populations in areas of high poverty;

(iv) Child care providers that serve children with special needs; and

(v) Child care providers that serve children ages 2 and younger.

(j) The Department of Commerce shall work with the Department to publicize the availability of loans from the Fund and provide support to child care providers in applying for loans from the Fund.

(k) (1) For fiscal year 2023, the Governor shall include in the annual budget bill an appropriation to the Fund of $15,000,000.

(2) For fiscal year 2024, the Governor shall include in the annual budget bill an appropriation to the Fund of $10,000,000.