Loan Terms (for existing providers keeping same license capacity)
Note: The interest rate can be reduced to 0.5%, for the following factors: the child care business becomes Parent Aware rated or increases the Parent Aware rating. Documentation is required.
Loan Collateral: A lien will be taken on child care business assets. The lien filing fee ($20.00) is collected at loan closing.
Credit Report and Loan Workup Costs: $25.00
Additional Resources: Monthly e-newsletter, also eligible for small grants to be used for training fees, consultant fees, legal or accounting fees, or other “brain power” activities that benefit the child care owner and business. Funds can’t be used to purchase physical assets.
Monthly loan payments processed electronically though a bank account. Verification of active license and number of slots to be reviewed quarterly with borrower and also verified with the Department of Human Services.
Loan Terms (for new providers or existing providers changing license to increase capacity)
Loan Amount: Up to $ 5,000
Interest Rate: 0.0%
Term: Up to 5 years
Repayment Schedule: No payments; a portion of the loan principal will be written off each month to term end; loan is contingent on an active child care business and maintaining slots; verification of active license and number of slots reviewed quarterly with borrower and with the Department of Human Services. An IRS form 1099-C (Cancellation of Debt) is issued each year for the principal portion written off. If the child care business closes, notice will be given that the remaining loan balance is due and payable. Borrowers are eligible for these terms ONCE.
Loan Fees: NONE
Electronic Loan application process: One page loan application*; please allow 10 business days for loan processing.