Starting a for-profit day care business can cost a lot of money with a need for upfront capital close to $100,000 depending on the size and location. Unless you have significant financial resources, you may need to find other funding sources, such as grants. There are limited grants available for for-profit day care centers. However, if you choose to start a non-profit daycare business, more funding can be obtained through state and government programs.
Child Care Grant Fund
The Child Care Grant Fund awards $200,000 a year to Nebraska child care businesses. The funding is divided into several grants: emergency mini-grants, legally exempt grants, and quality improvement grants. Emergency mini-grants are given to child care facilities that are licensed and possess documentation that meet licensing standards. A business can receive funding once every three years. Legally exempt grants provide funding to non-licensed child care businesses (cares for fewer than four children) that provide care for families who receive child care subsidies. The grant can be used to purchase first aid kits, electrical outlet covers, cribs, mats, telephones, cots, smoke alarms, lock boxes, playpens and toys. You may reapply for this grant after three years. The quality improvement grant funds home child care facilities or child care centers with money for items that will improve the quality of the services offered to children. This grant is awarded once a month to licensed centers that serve low-income families.
To be eligible for the Child Care Grant Fund, you must make minor changes to your building that meet licensing requirements for new programs, or make modifications to increase the number of infants, children with disabilities, and school-age children, and/or make building changes for licensed centers switching from a Family Child Care Home I to a Family Child Care Home II. Applications are accepted monthly for the Child Care Grant Fund.
Nebraska Department of Health and Human Services Grants Manager, Child Care Program P.O. Box 95026 Lincoln, NE 68509-5044 402-471-9152 hhs.state.ne.us/chs/chc/ccgrant.htm
Child Care Facility Fund
The Child Care Facility Fund (CCFF) was founded in 1991 by the Department of Commerce to provide financial assistance to child care businesses through grants and loans. Its mission is to increase the number of quality, affordable, convenient child care centers. CCFF grants are awarded for health, safety and quality of service improvements; equipment and supplies; and assistance to child care centers for its DEL child care license.
CCFF grants may only be used to buy items such as fire alarm systems, locks, changing tables, kitchen equipment, playground equipment, and a plumbing upgrade. CCFF prohibits the use of funds for construction work, refinancing, travel expenses, debt incurred before approval, and political or religious purposes. The Child Care Facility Fund requires applicants for grants to be able to demonstrate a dollar-for-dollar match for all funds, to spend the award within six months of award date, and be a licensed for-profit or non-profit child care center in the state of Washington. All applications are reviewed by the Child Care Facility Fund Advisory Committee four times per year (January, April, July and October).
CCFF Program Manager Department of Commerce P.O. Box 42525 Olympia, WA 98504-2525 360-725-4045 commerce.wa.gov
Child Care Grant Program
Institute of Mental Hygiene (IMH) sponsors the Child Care Grant programs. The programs give grants to any Class A center in Orleans Parish in New Orleans. The child care center may be non-profit or for-profit and provides subsidized child care of 30 percent or more for children and has been open for at least one year with one star from the Louisiana Quality Start program.
IMH grants focus on rebuilding and restoring child care services lost after Katrina and on improving the quality of service offered at child care facilities. The grants can be used to purchase toys, books, equipment, furniture, and for curriculum and training. Application deadlines are Dec. 20, March 20, and Sept. 20.
Institute of Mental Hygiene 1055 St. Charles Ave., Suite 350 New Orleans, LA 70130 504-566-1852 imhno.org/imh_childcare_grants.html
Since 2007, Jophiel Aurora has written articles on environmental issues, vegetarianism, travel and animal rights for Web sites like eHow, Answerbag and LIVESTRONG.COM. Aurora is also a writer for Animal World: Our Co-Inhabitants, an online program. She has a Bachelor of Business Administration in computer information systems from Georgia State University.