There are a variety of funding options available for daycare businesses such as grants and subsidies. A daycare grant is a one-time payment given to a childcare center for a specific need or project. A subsidy is an ongoing payment, usually provided by the government, which covers essentials such as food. Subsidies are typically based on need. Subsidies are given to the individual in need to give to the center, or given directly to the daycare center on behalf of the individual in need. Before applying for a daycare grant, it is important that you spend some time developing a detailed business plan.
Business Plan for Daycare Grants
The business plan is an important component of the daycare grant process because it demonstrates why your daycare center qualifies for the grant above others. A basic business plan for a daycare should include an introduction, an executive summary, a company plan, a marketing plan, an operating plan, and a financial plan:
• Introduction: Introduces the daycare business and includes a mission statement and a fact sheet about your business.
• Executive Summary: Summarizes the purpose of your business. This section is where you will place your goals and objectives
• Company Plan: A review of the facts of your business. This will detail such information as your assets, suppliers, property owned, location, etc.
• Marketing Plan: Outlines how you plan to market your daycare business.
• Operating Plan: Summarizes your daily operation.
• Financial Plan: Reviews your business’ past and present financial details as well as financial projections. This is where all of the expenses, accounts payable, and your summary of financial needs information are detailed and you will spell out how you will keep your business up and running.
Daycare Grant Sources
Once a solid business plan is created, it is time to begin searching for financing for the daycare business in the form of grants.
Begin your search for daycare grants locally within your county and state. Contact your local licensing office, the local chapter of the National Child Care Resource and Referral Agency (NACRRA), and local child care organizations to see if there are grants available.
The federal government may offer subsidies or daycare government grants. Search for grants through the United States Government’s Children and Family Agency. Also, contact the Small Business Association as they may offer grants for startup costs. If you are minority, contact the Minority Business Development Agency.
Attaining grants from private organizations is another avenue for obtaining grants. Many philanthropic organizations and foundations offer grants to certain types of businesses. To find such organizations, search the Foundation Center which connects nearly 600 foundations nationally with nonprofit organizations.
The best places to start looking for daycare grants and subsidies are Head Start, Child Care and Development Fund (CCDF), Temporary Assistance for Needy Families (TANF), and Child and Adult Care Food Program (CACFP). There are many daycare grant guides available at libraries, bookstores, and online that may assist you in locating funding for your daycare business. After finding sources for your daycare grants, request their latest application and funding guidelines.
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