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

ALLOCATING PUBLIC REVENUES SOCIAL AND HUMAN SERVICES
once. The Connecticut strategy uses a series of bond
pools over a longer period of time and includes many
more projects. The Illinois loans amortized at 10 years;
the Connecticut loans amortize for up to 30 years,
making it more feasible for nonprofit child care centers
to support a portion of the debt.
CONTACTS
Jeffrey A. Asher
Managing Director and CFO
CHEFA
10 Columbus Blvd, 7th Floor
Hartford, CT 06106
Phone (860) 520 4002, Ext. 314
Fax (860) 520 4706
E–mail jasher@chefa.com
Peter Palermino
Program Manager
Connecticut Department of Social Services
Office of Child Care
25 Sigourney Street. 10th floor
Hartford CT 06106
Phone (860) 424 5006
Fax (860) 951 2996
E–mail peter.palermino@po.state.ct.us
Amy Gillman
Program Director
LISC Community Investment Collaborative for Kids
733 Third Avenue
New York, NY 10017
Phone (212) 455 9840
Fax (212) 370 9427
E–mail agillman@liscnet.org
CHILD CARE FINANCIAL
ASSISTANCE PROGRAM (FLORIDA)
DESCRIPTION
Florida’s Child Care Financial Assistance Program makes
funds available as grants and loans to help child care
providers start their businesses, to assist providers in
achieving accreditation and to improve the overall quality
of child care. The loan program included a unique
provision that allowed child care programs that complied
with specified quality standards to apply for a rebate of
up to 100 percent of the loan principal.
WHEN ESTABLISHED
The program was established in 1997.
ANNUAL AMOUNT
In FY1998, $400,000 was allocated for the loan program
and $400,000 was allocated for mini–grants. In FY1999,
$500,000 was allocated for the loan program and
$500,000 was allocated for mini–grants. In FY2000 no
additional funds were allocated for the loan program and
$500,000 was allocated for mini–grants. In FY2000/01
$1 million (all of the funds) will be made available for
mini–grants. All of these funds are drawn from federal
Child Care and Development Funds and transfers from
the Temporary Assistance for Needy Families fund.
SERVICES FUNDED
Grants and loans to child care providers are funded.
Grants of up to $2,500 are available to help licensed
child care centers or homes complete the licensure or
accreditation process or make other quality
improvements. (Until 1999, grants were capped at $500.)
Grants of up to $250 are available to help unregulated
family child care providers become registered or to help a
registered provider make quality improvements.
From 1997 to 1999, loans of up to $10,000 were
available at 2 percent interest (for a 24– to 36–month
term). Providers who received loans were eligible for
rebates, based on the following terms:
• Providers who remained in business for 24 months
(and note is paid) received a rebate of 50 percent of
the loan principal;
• Providers who were licensed for at least one year
preceding the total loan repayment and remained in
business for 24 months received a rebate of 75
percent of the loan principal;
• Providers who became accredited within six months of
loan repayment and remained in business for 24
months received a rebate of 100 percent of the loan
principal.
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