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Business Financing

There are resources available if you are considering building a new center or if your center or family child care home needs renovation or remodeling to better accommodate the children in your care.

In general, there are seven ways to pay for a facility project:

  1. Volunteer labor and in-kind donations of professional skills, materials, equipment and furnishings.
  2. Bartering services (i.e. a parent or guardian could receive free or reduced child care services for a specific period of time in exchange for plumbing or carpentry work).
  3. Lease reductions in trade for making building improvements (note: this does NOT provide cash to cover the costs of facility improvements but will reduce overhead costs thereby freeing up some money for the building project).
  4. Use of operating surplus funds,  agency funds, personal savings or investor dollars.
  5. Grants and donations from public and private organizations and individuals (to receive public grants you most likely need to be a non-profit child care organization).
  6. Government grants for specific capacity-building initiatives (see listing below of current grants in your area).
  7. Bank and government loans.
  • Child Care Bureau - dedicated to enhancing the quality, affordability, and availability of child care for all families. The Child Care Bureau administers federal funds to states, territories, and tribes to assist low-income families in accessing quality child care for children when the parents work or participate in education or training.

  • Community Development Block Grants- Community Development Block Grant Public Service Grants are awarded to counties throughout the state to support partnerships with local Community Action Agencies in conjunction with Community Service Block Grant  funds, administered by Washington State Office of Community Development's Community Services Division.
  • Community Facilities Loan and Grant Program Purpose: To construct, enlarge, extend, or otherwise improve community facilities providing essential services in rural areas and towns with a population of 20,000 or less.  Contact: Paul Johnson (360) 704-7761.
  • Department of Community, Trade and Economic Development (CTED) -   a cabinet-level state agency, was created to strengthen community social service programs, provide affordable housing, assist companies to export their products and promote Washington's heritage and scenic beauty. The Agency administers more than one hundred programs ranging from farm worker housing, domestic violence, historic preservation to tourism, community development block grants, and early childhood education and assistance programs.
  • The Washington State Housing Finance Commission assists 501(c)(3) nonprofits to obtain below-market interest rates on loans to construct, purchase, rehabilitate or refinance capital facilities.  The Commission issues  tax-exempt bonds  that range from $300,000 to several million. Examples of  their projects include administrative offices, schools, housing,  neighborhood and day care centers, as well as job training, cultural,  athletic and social service facilities. Questions?  E-mail or call 1-800-767-4663. In Seattle call (206) 254-5359 for more information. Washington State Housing Finance Commission, 1000 Second Ave., Ste. 2700, Seattle, WA 98104-1046.
  • Small Business Administration Loans (SBA): Loans available through commercial banks for small businesses:

Non profit child care centers may be eligible for foundation and corporation grants. Contact  Philanthropy Northwest or your local United Way or county library for a list of foundations and corporations.

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