Child Care Business Loan: Common Questions
Child Care Business Loan: Common Questions

Am I eligible for a loan?
If you receive reimbursement from the county, or what we call "county pay children", you probably meet loan requirements. This loan pool was established for providers willing to offer quality child care to working families who qualify for the Minnesota Basic Sliding Fee program. You must live in Crow Wing, Morrison or Todd County.


Can I apply for a CCRR grant and a loan at the same time?
Yes. The best plan is to submit both applications at the same time. If you are awarded the full grant, you will not need the loan. However, if you only get part of your grant, you may want to use loan dollars for your project. For example, if you apply for a grant to purchase playground equipment costing $1,000 you may be awarded $600 in grant money. The remaining $400 can be financed through the loan program. Our TCC loan officer and CCRR staff will help you develop a plan.


What can loans be used for?
Loans may be used to purchase child care related items or improvements to your home. Priority is given to those requests for items that directly impact the safety and care of children (i.e. fences, equipment and renovation).


How much money can I borrow?
TCC loans can range from $300 to $3,000. Most loans are under $2000. If you have a loan request above $2000, you many want to use First Children's Finance. Our TCC loan officer will help you weigh the pros and cons of both programs. Last year's "typical loans" were for fencing, a kitchen remodeling, for playground equipment, and toys. One provider used loan dollars to turn the existing garage into additional child care space.. Another provider purchased toys through the TCC Head Start account and received a discount. CCRR has purchasing programs that will save you money also. Our goal is to help providers find the best product at best price.


Do I have to be licensed?
You must be licensed or be in process of being licensed.


Is there an application fee?


What is the interest rate?
The interest rate is 8%. If you borrow $1000 for two years, your monthly payment will be approximately $45 a month. If you want to pay it off in one year, the monthly payment will be approximately $90 a month. Our TCC Loan Officer can give you loan amounts, payments and terms.


I heard that business skills training is offered to loan applicants. What does this mean?
Successful loan applicants are offered choices for training to meet their business needs. For example last year one applicant selected the one-credit Dollars and Sense Business Skills Training at Central Lakes College. Another loan applicant elected to attend a credit-based workshop relating to special needs children.

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