Community Grants & Funding
There are several potential sources of funding that communities or new and existing child care providers should investigate when they are looking to build, remodel, or lease a child care facility. Many of the funds also allow for working capital, equipment purchases and upgrading to meet licensing requirements.
The following is a partial list of potential funding sources. Contact a CCR&R Community Support Consultant in your region to receive additional information and guidance related to your specific location, the type of child needed and community goals.
- North Dakota Development Fund (NDDF)
- Main Street Loan Program
- First Children's Finance (FCF) Loan Fund
- Rural Economic Development Loan and Grant
- Community Facilities (CF) Loan and Grant Program
- Community Resources
Administrating Agency: North Dakota Department of Commerce
Eligible Organizations: Licensed profit, non-profit and public child care facilities. Faith based organizations are eligible but must follow all appropriate federal guidelines if receiving federal subsidies.
Amounts and Eligible Uses: Maximum of $100,000 for the acquiring, leasing, or remodeling of real estate facilities, purchasing equipment or working capital.
This is a fixed-rate, low interest loan currently at 2.5%. Collateral and owner equity not required.
Administrating Agency: Dakota Certified Development Corporation.
Eligible Organizations: Small Businesses (new or existing) operating in North Dakota (visit with DCDC for a complete list of eligibility requirements)
Amounts and Eligible Uses: Minimum $1,000; maximum $24,999 for working capital, inventory, or small equipment.
Rates are fixed and established at time of loan approval. Collateral and owner equity required.
Administrating Agency: First Children’s Finance.
Eligible Organizations: Child care and early education businesses, especially those serving lower-income communities.
Amounts and Eligible uses: Family child care in homes amounts are $1,000-$25,000. Centers and schools, including Head Start, amounts are $1,000-$125,000. For expanding or starting child care and early education businesses; for new buildings, additions, remodeling and upgrades; for purchasing supplies and equipment; for fulfilling licensing requirements and managing cash flow.
Rates are fixed and based on the prime rate plus a percent set at closing. Collateral and owner equity required.
Administrating Agency: Local utilities or telecommunications provider. (not all participate in this program)
Contact your local utility or telecommunications provider for infomation and applications. They apply for the grant from the Rural Development State Office and use the funds to establish a revolving loan fund.
Eligible Organizations: Determined by the local utility board.
Amounts and Eligible Uses: Determined by local utility board.
Rates vary. Determined by local utility. Typically very low to zero interest rate.
Administrating Agency: United States Department of Agriculture-Rural Development
Eligible Organizations: Construct, improve or develop child care facilities.
Amounts and Eligible Uses: Funding amount determined by size of project. All projects first considered for loan funds and ability to repay debt. Interest rate of loan determined by median household income (MHI) of service area. Grant amounts limited to economic feasibility of project subject to MHI thresholds.
Rates may change quarterly. Through June 30, 2010 rates ranged from 4.125% to 4.5%.
Some communities have a city sales tax that is ear-marked for economic development. Those funds could be used as matching funds or operating funds dependent upon the direction of the local board overseeing the local tax revenue.
Contact a CCR&R Community Support Consultant in your region to learn more about community grants and funding.