Child Care Entrepreneurs

Financing Your Child Care Dream

We understand the passion and dedication it takes to provide quality child care. That’s why we offer flexible, innovative loans to help child care entrepreneurs like you to achieve your dreams. We listen, champion your story and support you at every stage of your entrepreneurial journey. Whether you’re just starting out, expanding your existing program, or making facility improvements, we have a loan product to meet your needs.

Ready to Start the Process?

Contact Lending Support

Haley Ramsey, Lending Support Navigator

Direct: 612-223-7239

haleyr@firstchildrensfinance.org

Loan Amounts

Family Child Care Businesses: Up to $25,000

Center Child Care Businesses: Up to $125,000 ($50,000 max for start-ups)

Start-up Definition: A child care business that has been in operation for two years or less

Interest Rates

Interest rates start at 8% and are determined during underwriting. Factors that can affect the interest rate include past credit history and collateral available

What Can You Use the Loan For?

What Can You Use the Loan For?

Facility improvements(including in-home improvements if home-based)

• Heating and cooling systems

• Flooring

• Fencing and sheds

Learning materials equipment, and toys

• Playground equipment

• Furniture and appliances

Business Operations/Working Capital (including payroll)

• Training and professional development

• Computers and software

Purchasing land and/or a facility (often with a funding partner)

Our Loan Process

Reach out to First Children’s Finance via email or phone.

Pre-qualification application (2 pages plus a few uploads). We’ll review your income level, business location, and CDFI Fund-defined eligible populations to assess eligibility and funding availability. This helps us determine if your loan request aligns with our mission of expanding access to capital and quality child care. We prioritize borrowers who face barriers to traditional financing, including:

• Businesses owned by LMI individuals, BIPOC, and women.

• Child care business owners operating in and/or serving LMI communities and families.

Loan Application:

Complete our loan application.

Provide all necessary documentation.

Include a financial model/projections (for start-ups).

Application Fee:

• $25 for family child care businesses

• $100 for center child care businesses

Review of Submitted Items:

We’ll review your application and all submitted items.

This includes an underwriting process and discussions about loan terms, structure and any follow-up questions on your loan request.

Loan Approvals:

Your loan will require 1-3 approvals depending on the size and specifics.

2 approvals for loans over $25,000.

A 3rd approval may be needed if an SBA (Small Business Administration) guarantee is needed, or for loans using specific funder approvals.

Closing and Funding:

Once approved, you’ll receive a commitment letter.

We’ll finalize the closing documents.

Funding will be ordered.

Proof of Use:

After receiving funding, you’ll need to provide proof of how the funds were used.

Keep all receipts.

Take before and after pictures of your project.

Links to Example Forms:

Personal Financial Statement

Sources and Uses Form

Working Capital Request Form

Ready to Apply?