Start-up funds for For-Profit Child Care Businesses

Over the past few years child care programs have began to be regarded as profitable businesses. As a result many people are seeking advice to obtain grants to start their own for-profit child care business, expand an existing for-profit program or upgrade their facilities.
The not so good news is that funding for the development and operations of child care programs to serve low and middle income families, has largely fallen within the purview of the federal, state and local governments that only fund not-for-profit organizations.

Generally, some grant makers will consider funding some of the “non-tuition” activities or cost of not-for-profits. However, almost no foundation will fund the child tuition or direct care cost of a child care program; whether the program is for-profit or not-for -profit.

Of course there is always the rare exception, so if you decide to research the possibility of a grant, try to think about what makes your program exceptional or unique and highlight those aspects when you request funding.

I suspect that finding start up capital for your for-profit child care business will be a real challenge, but worth the effort. The first thing that I would advise is that you avoid letting anyone sell you a grant writing package or materials, or write you a proposal before doing some preliminary research yourself.

Below are two funding sources that we suggest you explore:

As an independent child care business owner you can try the Foundation Grants for Individuals, a service of the Foundation Center at http://www.fdncenter.org/ which is part of the Foundation Library located on 5th Avenue in New York City. There may be something unique about you personally, the way you do business or perhaps how you plan to provide care to a special population of children that would make your proposal appealing to a grant maker.
In New York State one government source that will help for-profit programs with start-up funds, but will not provide funds for ongoing operations, is the New York State Office of Children and Family Services (OCFS). These funds are intended to increase the supply of child care programs for working families in New York State regardless of their income. Opportunities for start-up funding are offered sporadically so you should put yourself on the mailing list for notification when Requests for Proposals (RFP)’s become available. The OCFS website is https://ocfsws.state.ny.us/obl

The OCFS RFP is particularly helpful because it will give you an overview of the resources and thought process necessary for developing a quality child care program. Good Luck!!