Starting a Child Care Center

Introduction

Access to quality, affordable child care is a national priority as the number of two income and single parent families continue to increase.  Most parents select one of three types of child care facilities: family care, home care, or day care. Each type has advantages and disadvantages to consider in establishing a child care facility along with the decision to establish either a nonprofit or for profit child care facility.

This resource guide was revised and updated by Patricia LaCaille John June 2005.

Types of Child Care Programs

1. Child Care Options. Mary Duncomb. WW-07268. St. Paul: University of Minnesota, Extension Service, 1998. 4 p. http://www.extension.umn.edu/distribution/familydevelopment/components/7268i.html

2. Choosing Child Care: Child Care Options. Amy Fackler. Boise, ID: Healthwise, Inc., 2003. 3 p. http://www.pamf.org/health/healthinfo/index.cfm?section=healthinfo&page=article
   &sgml_id=aa43308

Child Care Partnerships and Cooperatives

1. About Cooperatives: Childcare and Preschools. Washington, DC: National Cooperative Business Association. http://www.ncba.coop/abcoop_child.cfm

2. Child Care Partnership Project. Fairfax, VA: National Child Care Information Center. http://nccic.org/ccpartnerships/home.htm

• Partnership Profiles. http://nccic.org/ccpartnerships/profiles/rural.htm

• Partnerships in Rural Communities. Fairfax, VA: National Child Care Information Centers. http://nccic.org/ccpartnerships/facts/fs18.htm

• Resource Materials, Fairfax, VA: National Child Care Information Center. http://www.nccic.org/ccpartnerships/resource.htm

3. Child Care That Works: Child Care Cooperatives. Lesia Oesterreich. PM 1808. Ames: Iowa State University, University Extension, 1999. 2 p. http://www.extension.iastate.edu/publications/pm1808.pdf

4. A Guide to Successful Public-Private Partnerships for Child Care. Fairfax, VA: National Child Care Information Center, n.d. 23 p. http://nccic.org/ccpartnerships/guide/index.html

5. Public-Private Partnerships in Child Care. Fairfax, VA: National Child Care Information Center, 2004. 11 p. http://nccic.org/poptopics/public-private.html

Starting a Child Care Center

1. Child Care: An Action Manual for Communities. Lesia Oesterreich. PM-1739. Ames: Iowa State University, University Extension, 1997. 52 p. http://www.extension.iastate.edu/Publications/PM1739.pdf

2. Child Care Financial Basics. Lesia Oesterreich. PM-1751. Ames: Iowa State University, University Extension, 1998. 24 p. http://www.extension.iastate.edu/Publications/PM1751.pdf

3. Early Childhood Facilities. Washington, DC: National Clearinghouse for Educational Facilities, 2005. 28 p. http://www.edfacilities.org/rl/earlychildcenters.cfm

4. How to Start a Quality Child Care Business. MP-29. Washington, DC: U.S. Small Business Administration, 1987? 69 p. http://www.sba.gov/library/pubs/mp-29.pdf

5. Liability Insurance and the Child Care Center. Carol Volker. Ames: Iowa State University Extension, 1995. 10 p. http://www.nncc.org/Business/liabil.ins.ccc.html

6. Perspectives on Rural Child Care. Betty A. Beach. ERIC Digest, ED403102, 1997. 4 p. http://www.ericdigests.org/1997-3/rural.html

7. SBA's Online Business Course: How to Start a Business. 12 Session Course. City of Industry, CA: My Own Business, Inc. http://www.myownbusiness.org/course_sba.html

8. Small Business Startup Guide. Washington, DC: Small Business Administration. http://www.sba.gov/starting_business/startup/guide.html

9. Starting a Child Care Center. Fairfax, VA: National Child Care Information Center, 2005. 8 p. http://nccic.org/poptopics/starting.html

Family Child Care Providers

1. Liability Insurance and the Family Child Care Provider. Brenda Cude, Carol Volker. NCR 395. Ames: Iowa State University Extension, 1993. 12 p. http://www.nncc.org/Business/liabil.ins.fcc.html

2. Starting a Family Child Care Program. Fairfax, VA: National Child Care Information Center, 2005. 7 p. http://nccic.org/poptopics/starfund.html

Employer Sponsored Child Care

1. Child Care Options for Employers. PM-1712. Ames: Iowa State University, University Extension, 1997. 56 p. http://www.extension.iastate.edu/Publications/PM1712.pdf

2. Employer-Support Child Care. Fairfax, VA: National Child Care Information Center, 2005. 6 p. http://nccic.org/poptopics/employersupportedcc.html

3. Employer Toolkit Template. Fairfax, VA: National Child Care Information Center, 2005. 63 p. http://nccic.org/ccpartnerships/toolkit/toolkit.htm

4. Taking Care: An Employer's Guide to Child Care Options. Elizabeth Cushing Payne. San Francisco, CA: One Small Step, United Way of the Bay Area, 2002. 11 p. http://www.onesmallstep.org/TakingCare.pdf

5. Tax Incentives for Employers to Support Child Care. Fairfax, VA: National Child Care Information Center, 2005. 13 p. http://nccic.org/poptopics/taxcreditsemployers.html

Funding Sources

When starting the funding search be sure to review federal, state, and private resources that you could use for your child care service.  First determine your profit or nonprofit status,  then develop a business plan, http://www.nal.usda.gov/ric/ricpubs/small_business.htm. Next consult Grant Writing Resources for assistance in preparing successful proposals and in obtaining funding applications and a DUNS number that is required of all organizations/entities applying for a federal grant or cooperative agreement.

Federal

Child Care Facilities

U.S. Department of Agriculture (USDA) has two agencies with start-up/expansion funding programs.  The Rural Housing Service, http://www.rurdev.usda.gov/rhs/index.html, (RHS) has facility funding available for non profits or local governments that support child care facilities. The Rural Business-Cooperative Service, http://www.rurdev.usda.gov/rbs/index.html, has guaranteed loan programs for small business development available for profit child care programs. To determine eligibility or to apply for any of the programs listed below, contact your state or local Rural Development Office, http://www.rurdev.usda.gov/recd_map.html.

• Community Facilities Direct Loan Program, RHS, USDA, http://www.rurdev.usda.gov/rhs/cf/cp.htm

U.S. Department of Health and Human Services (DHHS) has funding programs that support child care services. The Child Care Bureau, http://www.acf.dhhs.gov/programs/ccb/policy1/index.htm has several funding programs for child care facilities. Check with your state contact listed below for more information.

• Child Care and Development Block Grant (93.575)

• Child Care Mandatory and Matching Funds of the Child Care and Development Fund (93.596)

  • State Child Care and Development Fund Contacts, http://nccic.org/statedata/dirs/devfund.html

U.S. Department of Housing and Urban Development (HUD) supports child care facilities near or within public housing, EZ/EC's, or low-income areas through facility construction using block grants, programs, and networks.  To determine eligibility or to apply for any of the programs listed below, contact your state HUD office. http://www.hud.gov/local/index.cfm

• Community Development Block Grants (CDBG), http://www.hud.gov/offices/cpd/communitydevelopment/programs/cdbg.cfm

• The Historically Black Colleges and Universities Program (14.520), allows historically black colleges and universities to help in providing funding for community needs, including construction of local community facilities providing child care and after-school services through these institutions. http://ric.nal.usda.gov/nal_web/ric/ffd.php?rec_id=399&mode=show_reference

• Neighborhood Networks, http://www.hud.gov/offices/hsg/mfh/nnw/nnwindex.cfm

  • State Center Locations
    http://www-domino4.hud.gov/NN/contacts.nsf/centersearch?OpenForm

U.S. Small Business Administration (SBA) provides small businesses financing options, technical assistance, and child care resource information. Check you local SBA offices at http://www.sba.gov/regions/states.html for more information and applications.

• SBA's Finance page, http://www.sba.gov/financing/ provides details on all their financial programs.

• SBA's Answer Desk has a  "Most Asked Questions", http://www.sba.gov/answerdesk.html, web site that provides clickable links to all the basics information on business startup and financing.
  1-800-UASK-SBA (1-800-827-5722)

• SBA's Women's Business Center Program provides resources for child care businesses at Business Center locations nationwide: http://www.onlinewbc.gov/wbc.pdf.

U.S. General Services Administration has a program that allows the donation of surplus federal personal property (computers etc.) to state and local public agencies and qualifying nonprofits, which include child care centers.

• Donation of Federal Surplus Personal Property Program (39.003) http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8211&channelPage=/ep/
  channel/gsaOverview.jsp&channelId=-13012
  http://ric.nal.usda.gov/nal_web/ric/ffd.php?rec_id=796&mode=show_reference)

The U.S. Department of Justice, Civil Rights Division, Disability Rights Section provides information to child care centers regarding compliance to the Americans with Disabilities Act.  This program has an ADA Information Line (1-800-514-0301) that provides answers to general and technical questions about ADA compliance.

• Child Care Centers and the Americans with Disabilities Act, http://www.usdoj.gov/crt/ada/chcaflyr.htm

• Commonly Asked Questions about Child Care Centers and the Americans with Disabilities Act, http://www.usdoj.gov/crt/ada/childq%26a.htm

• ADA and IT Technical Assistance Centers, http://www.adata.org/centers.aspx

Food Programs

The U.S. Department of Agriculture also has funding programs that support child care centers and family day care homes by providing assistance through the Food and Nutrition Service food programs.  To determine eligibility or to apply for the program listed below, contact your state agency that administers the Child Nutrition Programs, http://www.fns.usda.gov/cnd/Contacts/StateDirectory.htm.

• Child and Adult Care Food Program provides meals and/or after-school snacks http://www.fns.usda.gov/cnd/Care/CACFP/cacfphome.htm.

Additional Information on Food Programs:

• Afterschool.gov - Funding Basics including Food Programs, http://www.afterschool.gov/docs/federalFunding.html

• Maximizing Federal Food and Nutrition Funds for Out-of-School Time and Community School Initiatives. Barbara Hanson Langford. Strategy Brief, vol. 1, no. 3. Washington, DC: The Finance Project, 2000. 19 p. http://www.financeprojectinfo.org/Publications/Brief3.pdf.

Child Care/Youth and After-School Programs

• AfterSchool.gov web site has information on federal funding programs, http://www.afterschool.gov.

• After-School Transportation Programs, http://www.afterschool.gov/xhtml/topic/t_14.html

• Childcare.gov, http://www.childcare.gov/

U.S. Department of Health and Human Services (DHHS) Head Start Bureau, http://www2.acf.dhhs.gov/programs/hsb/index.htm has programs that assist with nutrition, health, and education readiness for young children. To determine eligibility or to apply for any of the programs listed below, contact your regional office or the the National Child Care Information Center, http://nccic.org/.

• Early Head Start National Resource Center, http://www.ehsnrc.org/

  • Regional Offices for the Administration on Children and Families, http://www.acf.dhhs.gov/programs/oro/regions/acf_regions.html

• Migrant and Seasonal Head Start Quality Improvement Centers, http://www.mhsqic.org/

• QUILT, http://nccic.org/quilt/

U.S. Department of Education programs that assist with child care efforts:

• The 21st Century Community Learning Centers (84.287) program offers an after-school environment that provides enrichment opportunities for children. http://www.ed.gov/programs/21stcclc/index.html
  http://ric.nal.usda.gov/nal_web/ric/ffd.php?rec_id=1101&mode=show_reference

• The Child Care Access Means Parents in School (84.335) program provides funding to support or establish child care programs serving low-income students enrolled in college.  Only institutions of higher education are eligible.
  http://www.ed.gov/programs/campisp/index.html
  http://ric.nal.usda.gov/nal_web/ric/ffd.php?rec_id=1124&mode=show_reference

U.S. Department of Justice, Office of Juvenile Justice and Delinquency Prevention has funding programs available that assist with the crime prevention aspect that some after-school care programs address.  These programs are mainly set up for public entities, established youth programs and nonprofit organizations focusing on crime prevention in their communities. http://ojjdp.ncjrs.org/programs/index.html

Additional After-School Program Resources:

• Out-of-School Time Project Overview. Washington, DC: The Finance Project. http://www.financeprojectinfo.org/ost/

• "When School is Out," The Future of Children, 9, No.2, Fall (1999). http://www.futureofchildren.org/pubs-info2825/pubs-info.htm?doc_id=71873

Native American Programs

• Indian Child and Family Education Program (15.043), Bureau of Indian Affairs (BIA) http://ric.nal.usda.gov/nal_web/ric/ffd.php?rec_id=441&mode=show_reference

• Indian Child Welfare Act: Title II Grants (15.144), BIA http://ric.nal.usda.gov/nal_web/ric/ffd.php?rec_id=468&mode=show_reference

• Indian Head Start Program, Indian Health Service, DHHS http://www.ihs.gov/NonMedicalPrograms/HeadStart/index.cfm

• Native American Employment and Training Program (17.265), ETA, DOL http://ric.nal.usda.gov/nal_web/ric/ffd.php?rec_id=658&mode=show_reference

  • ETA Division of Indian and Native American Programs (DINAP), http://www.doleta.gov/DINAP/

• Tribal Child Care Facilities: A Guide to Construction and Renovation, Child Care Bureau, DHHS http://nccic.org/pubs/tribguid.html.

• Tribal Child Care Assistance Center (TriTAC), Child Care Bureau, DHHS http://nccic.org/tribal/

Additional Resources

• Child Care in Rural Communities. Fairfax, VA: National Child Care Information Center, 2005. 8 p. http://nccic.org/poptopics/rural.html

• Child Care Technical Assistance. Washington, DC: U.S. Department of Health and Human Services, Administration for Children & Families. http://www.acf.dhhs.gov/programs/ccb/ta/index.htm

• The Finance Project: Out-of-School Time Clearinhouse - Funding Funding http://www.financeproject.org/irc/ost/funding.asp

• National Network for Child Care. Supported by Cooperation Extension System. http://www.nncc.org

State

Consult the child care resources and referral agency in your area for information on available state funding and/or technical assistance programs, licensing and regulations.

• Child Care Information by State: Licensing, Statistical Data, and Program Contacts. Ames, IA: National Network for Child Care. http://www.nncc.org/states/stateindex.html

• State Child Care Profiles. Fairfax, VA: National Child Care Information Center. http://nccic.org/statedata/statepro/index.html

Private

• Annie E. Casey Foundation, Baltimore, MD. http://www.aecf.org/about/grantguidelines.htm

• Charles Stewart Mott Foundation, Flint, MI. http://www.mott.org/grants.asp

• The David and Lucile Packard Foundation, Los Altos, CA. http://www.packard.org/categoryList.aspx?RootCatID=3&CategoryID=63

• Foundations Supporting Early Childhood Care and Education, Fairfax, VA: National Child Care Information Center, 2005. 19 p. http://nccic.org/poptopics/foundations.html

• Rural Community Assistance Corporation, West Sacramento, CA. http://www.rcac.org/

Technical Assistance

• Child Care Business Management. Ames, IA: National Network for Child Care. http://cyfernet.ces.ncsu.edu/cyfdb/browse_2pageAnncc.php?subcat=
  Child+Care+Business+Management&search=NNCC&search_type=browse

• Local Initiatives Support Collaboration (LISC), New York, NY. http://www.lisc.org/

  • LISC's Community Investment Collaboration for Kids (CICK), http://www.lisc.org/whatwedo/programs/cick/

• Rural LISC Partnership, Washington, DC. http://www.ruralisc.org/partners/partners.htm

Funding Guides

• "Child Care Financing," Child Care Bulletin. 10 (July/Aug 1996) 17 p. http://nccic.org/ccb/issue10.html

• "Financial Resources for Child Care." April Kaplan. Welfare Information Network Issue Notes. 2, No. 6 (1998): 10 p. http://www.financeprojectinfo.org/Publications/issuechild.htm

• Financing Child Care. Scott Groginsky. Washington, DC: National Conference of State Legislatures, 2000. 14 p. http://www.ncsl.org/programs/cyf/finrpt.htm

• Financing Child Care in the United States: An Expanded Catalog of Current Strategies. Anne Mitchell, Louise Stoney, Harriet Dichter. Kansas City, MO: Ewing Marion Kauffman Foundation, 2001. 186 p. http://www.kauffman.org/education.cfm?topic=achievement&itemID=11

• Finding Resources To Support Rural Out-of-School Initiatives, Elisabeth Wright. Strategy Brief. Washington, DC: The Finance Project, Vol. 4, No. 1, February 2003. 20p. http://www.financeproject.org/Publications/ruralost.pdf

• Funding Opportunities for Child Care. Fairfax, VA: National Child Care Information Center, 2004. 12 p. http://nccic.org/poptopics/funding-opportunities.html

• NCCIC Popular Topics/Information Products: Financing. Fairfax, VA: National Child Care Information Center. http://nccic.org/poptopics/#Financing

Child Care Statistics/Data

1. Child Daycare Services. Washington, DC: U.S. Department of Labor, Bureau of Labor Statistics. http://www.bls.gov/oco/cg/cgs032.htm

2. Children in the States. Washington, DC: Children Defense Fund. http://www.childrensdefense.org/site/PageServer?pagename=research_state_information_children_in_the_states

3. ChildStats.gov, Washington, DC. http://www.childstats.gov/

4. City & Rural Kids Count: Data Book. Baltimore, MD: The Annie E. Casey Foundation, 2004. 206 p http://www.aecf.org/kidscount/rural_databook/

Journals

Child Care Bulletin
National Child Care Information Center
http://nccic.org/ccb/index.html

The Future of Children
The David and Lucile Packard Foundation
http://www.futureofchildren.org/

Organizations

Children's Defense Fund
25 E Street N.W.
Washington, DC 20001
202-628-8787
Email: cdfinfo@childrensdefense.org
http://www.childrensdefense.org/

National Association for Family Child Care
5202 Pinemont Drive
Salt Lake City, UT 84123
801-269-9338
Email: nafcc@nafcc.org
http://www.nafcc.org/

National Center for Rural Early Childhood Learning Initiatives
46 Blackjack Road
P.O. Box 6013
Mississippi State, MS 39762
662-325-4954
Fax: 662-325-5436
http://ruralec.msstate.edu/

National Child Care Information Center
10530 Rosehaven St., Suite 400
Fairfax, VA 22030
800-616-2242
Fax: 800-716-2242
TTY: 800-516-2242
Email: info@nccic.org
http://nccic.org