Financing Child Care in the United States - Ewing Marion Kauffman ...

• CCFF used grant funds to help jump–start projects
that might otherwise languish for lack of equity,
promote the development of new slots for infants and
toddlers, help family child care providers pay for
one–time capital expenses and to cover emergency
repairs.
• The leadership provided by CCFF also spawned a new
initiative called “Adopt a Child Care Center,” which
matches local construction companies that are willing
to donate volunteer time and materials with nonprofit
child care centers that need renovations in order to
expand, maintain or improve their programs. Fifteen
child care programs, serving more than 1,200 children,
were served in 1999 through this effort.
OTHER SITES WITH SIMILAR STRATEGIES
Many states and communities have established child care
facilities funds. The Massachusetts Child Care Capital
Investment Fund (see page 156) is similar to CCFF.
CONTACT
September Jarrett
The Low Income Housing Fund
74 New Montgomery Street, Suite 250
San Francisco, CA 94105
Phone (415) 777 9804
Fax (415) 777 9195
E–mail
september@sf.lihf.org
CHILD CARE CAPITAL INVESTMENT
FUND (MASSACHUSETTS)
DESCRIPTION
The Child Care Capital Investment Fund (the Fund) pools
funds (grants and loans) from public and private sources,
including foundations, government entities, banks and
insurance companies, and re–lends them to nonprofit
child care providers serving low–income children in
Massachusetts. The Fund makes loans and provides
technical assistance, serving as an intermediary between
child care providers and financing entities. The Fund also
administers several grant programs in collaboration with
other agencies, using funds contributed by foundations,
as well as state and local sources.
WHEN ESTABLISHED
The Fund began as a partnership between foundations
and corporations. In 1992, an initiative of the United Way
of Massachusetts Bay brought together a group of
Boston area foundations and corporations as
collaborative child care funders. The Ford Foundation also
contributed grant money, resulting in an initial capital pool
of $2.5 million. The Fund started out by making loans to
child care providers in the Boston metropolitan area, but it
has recently expanded its lending program to providers
throughout the state.
ANNUAL AMOUNT
The Fund’s lending volume in recent years has ranged
from $300,000 to $700,000 annually. In the past, the
Fund has had more capital than demand for loans, though
that trend is changing as providers learn about the
availability of Fund loans. In 1999, the Fund raised $1
million for its loan capital pool from a “participation loan”
from four local banks (Citizens Bank, Fleet, Boston
Private Bank and Wainwright Bank) with each lender
contributing $250,000. The Fund is in the process of
negotiating $5 million in additional funds from insurance
companies, although the details of the loan are not yet
final.
SERVICES FUNDED
Child care loans are made to child care centers,
multiservices centers, family day care systems,
school–age child care programs and Head Start
programs. Child care providers can use the loan for any
capital project that expands or improves their physical
space or equipment or that improves program quality.
HOW FUNDS DISTRIBUTED
Child care providers must submit an application for a loan
to the Fund. Loans of $15,000 or less can be reviewed
and approved by Fund staff. Loans of greater sums must
be approved by both the Fund board’s Investment
Committee and by the full board of the Community
Economic Development Assistance Corporation
156