Child Care Business Loan: It’s Good Business to Invest in Child Care
Child Care Business Loan: It’s Good Business to Invest in Child Care

It's Good Business to Invest in Child Care

A new, needed and very successful strategy for building child care capacity in both homes and centers has been introduced. It is the Child Care Provider Business Loan Program.

 

Child care providers living in Crow Wing, Morrison and Todd Counties have two loan pools available. Both revolving loan funds can be used by Licensed Family Child Care Providers.

 

The TCC Child Care Provider Loan Program is funded by The McKnight Foundation and administered by TCC. This program is exclusively for providers in our three counties. In 1999, there were seven loans from made from the TCC Loan Fund. In 2000, six loans have been made to providers.

 

The second program, offered by First Children's Finance, is funded by the Minnesota Legislature and The McKnight Foundation. This loan fund is for all Minnesotans. As of December 1, no loans have been made from this fund to providers in our three counties.

 

For borrowers seeking a loan for under $2,000, the only loan option is the TCC Loan Program. There is no application fee. Approved loan applicants are rewarded with a one-credit (or equivalent) training course of their choice. Providers seeking loans greater than $2,000 will want to look at both programs.

 

The loan programs do not replace the CCRR grant programs. These grant programs have a great history of serving providers. We encourage every provider to apply for grant money to start and grow his or her business.

 

Grant monies do not need to be repaid. Grant monies depend on funding cycles and the economy. Grants are usually first come, first served. They generally do not require income guidelines. There is a variety of grant choices.

 

Loan monies must be repaid with interest charged. Loan monies are constant because borrowers keep replenishing the loan pool. Both loan funds require providers to serve families who qualify for the Minnesota Basic Sliding Fee Program.

  • Contact Usfor more information about the Child Care Business Loan Program.