A few facts to keep in mind
- Every state/territory/tribe has dollars for the Child Care Stabilization Grants
- These grants are for family child care providers and child care centers to provide financial relief and to help stabilize business affected by the COVID-19 pandemic
- This is not a loan. It’s a grant. You do not have to pay it back
- Explore Tom Copeland’s What You Need to Know About the Child Care Stabilization Grants
- Provider must be licensed/registered as of March 11, 2021.
- No do not need to show proof of financial loss to be eligible.
- Your program can be a Limited Liability Company (LLC) or incorporated or a non-profit organization
- The number of employees does not determine eligibility, you can be the only employee and qualify.
- Updates about your state: https://childcare.gov/covid-19/providers
How can the grant money be used?
- Paying yourself or employees – Explore Tom Copeland’s What Does it Mean to “Pay Yourself” with a Stabilization Grant?
- Rent, mortgage payment, utilities, insurance
- Facility maintenance and improvements
- COVID supplies, equipment, training on health and safety
- General operating expenses
- Other goods and services necessary to maintain or resume child care services
- Mental health supports for you, children and employees
- Professional Development Related to Health and Safety (CPR, First Aid, etc.)
Recordkeeping and Taxes
- You should keep records of how you spent grant money in case you are audited – Keep records for at least 3 years
- Providers must report as taxable income all the money they receive from the Stabilization Grants
- Explore Tom Copeland’s “Child Care Stabilization Grants and New Tax Changes for 2021.” and The Tax Implications of the Child Care Stabilization Grants to learn more
As the Child Care Stabilization grants start opening up and distribute funds to providers. It is essential to understand how the fund can be utilized. The federal guidance gives broad categories for allowed expense, including
- Personnel costs
- Rent, utilities, facilities, maintenance, and insurance
- Personal protective equipment, cleaning, and other health and safety practices
- Equipment and supplies
- Goods and services
- Mental health services
Remember, this is a grant, not a loan; you do not need to repay it. Understanding ways to use the funds and “pay yourself” will allow you to use the grant for a retirement plan, an emergency fund, additional staff, increase wages, insurance and so much more.
To learn more on how to Pay Yourself, please read Tom Copelands Article.
Register for the “Build, Learn, Grow Scholarship Fund Information Session,” available now on Indiana Learning Paths!
What is the Build, Learn, Grow Scholarship? For families with qualifying incomes (128%- 250% of the federal poverty level), classified as essential workers, the state of Indiana can cover 80% of tuition fees for kids up to age 12, including early learning, before-school, after-school, and summer learning programs. As an example, a family of four earning $66,000 per year will qualify for a Build, Learn, Grow scholarship.
Remember that early childhood education and care and out-of-school-time workers are essential, so those with qualifying incomes can also apply to receive this scholarship for their children!
During this 30-minute session, you will learn about the scholarship process, how to determine family eligibility, and the process for submitting a claim for reimbursement to support the children of essential workers in your program.
This session is required for programs that wish to accept scholarship funds and is available 24-7, so you can complete it when it is convenient for you.
- Login or create a free account at ilead.in.gov
- Click the green “Start Your Indiana Learning Path” button
- Choose “Courses” from the menu on the left-hand side
- Search “Build, Learn, Grow Scholarship Fund Information Session” to register and start the course
To stay up-to-date as additional program initiatives roll out, sign up for text alerts by texting the word UPDATES to 465437.
Resource list of the financial help available to small business owners created by the Illinois Governor’s Office of Early Childhood Development
To help in understanding the SBA loans, state loans, and the application process, NAEYC hosted a webinar with experts from the banking, business, and child care fields, the webinar is available in both English and Spanish.
For more information on eligibility and next steps, see the information sheet for borrowers:
For more information on funding options, see the SDA’s Coronavirus (COVID-19): Small Business Guidance & Loan Resources: