Child Care Capital Grant Program is sponsored by Maryland State Department of Education. A state-level grant program for small business childcare providers.

Child Care Capital Support Revolving Loan Fund Turn on more accessible mode Turn off more accessible mode Our Alert Agency Alert will go here Child Care Capital Support Revolving Loan Fund Child-Care-Capital-Support-Revolving-Loan-Fund Child Care Capital Support Revolving Loan Fund ​The Child Care Capital Support Revolving Loan Fund is a financing resource operated by the Department of Commerce, with support from the State Department of Education, to provide no-interest loans for capital expenses to child care providers who participate in the State Department of Education's Child Care Scholarship Program.

Use Compass to strengthen your child care loan planning The Maryland Community Business Compass can help you assess demand before you apply. The tool shows where families need child care the most, helping you validate location, expansion or capacity decisions tied to this loan program. Compass also connects you to additional financing options and business support that may complement your loan as you grow.

The Child Care Provider must be licensed by the State Department of Education and a participant in the State Department of Education’s Child Care Scholarship Program.

Priority is given to Maryland child care providers: Located in underserved communities or areas designated by the State Department of Education as lacking available child care slots, Located in rural communities, Serving primarily low-income populations in areas of high poverty, Serving children with special needs, and Serving children ages 2 and younger.

Qualifying Capital Expenses Loans may only be used for capital expenses related to a child care facility including: Acquisition, Expansion, Renovation, and New Construction.

Acquisition: Purchase of an existing child care facility Expansion: Construction or purchase of add’l space to an existing child care facility) Renovation: Repairs, renovation, upgrades of an existing child care facility New Construction: Construction of a new child care facility Businesses other than child care providers are not eligible. Loans are intended for current projects and may not be used to refinance existing debt.

Proceeds cannot be used for working capital or operations (for example: marketing, payroll, lease or rent expense, supplies, utilities, etc). Applicant must possess a valid child care license to apply. Loan proceeds must be used for a child care facility location operating in Maryland.

Loans must be repaid within five years after receiving the loan proceeds. Additional funds may be added to the project by the owner, sponsor or other intermediary. Collateral is required and may include, but is not limited to personal guarantees, liens on business assets and pledges of accounts.

With no-interest or application fees charged, the Child Care Capital Support Revolving Loan Fund offers a convenient, cost-effective financing resource for qualifying providers seeking to make capital improvements to maintain or grow child care enrollment. There are no prepayment penalties. The application period for the Child Care Capital Support Revolving Loan Fund closed January 30, 2026 .

Please revisit this webpage for updates on when the next round of funding will occur this calendar year. For applications to be considered the information listed below must be provided. Applicants should work with their advisor(s) completing the application.

Incomplete applications cannot be considered. A listing of all owners and percentages of ownership; resume of principal owner(s). Valid Maryland State Department of Education (MSDE) license.

Evidence of participation in MSDE Child Care Scholarship Program.

A description of the child care facility (when established, where located, staffing, enrollment figures, programs provided) A summary of how the loan will be used (e.g. renovations, repairs, equipment, furnishings, expansion Financial projections demonstrating the capacity to meet operating expenses (payroll, utilities, supplies etc. and repay the no-interest loan within five years after receiving the funds.

(template provided on the application). Current Personal Financial Statement of principal owner(s). Personal Federal Income Tax Returns with all Schedules (most recent three years).

Business Federal Income Tax Returns with all Schedules (most recent three years). Description and estimated value of collateral to be provided to secure the loan. Electronic Funds Transfer (EFT) Program The state of Maryland requires all contractors to be registered to receive state payments by electronic funds transfer (EFT) before any contract exceeding $200,000 is approved by the Maryland Board of Public Works.

Additionally, all vendors are encouraged to register to be paid electronically. The State has the ability to process vendor payments electronically using the CCD and CCD+ and CTX payment formats. The CCD+ payment format will contain summarized information and will not provide details concerning each invoice amount included in the check total.

However, vendors may obtain the detailed information on an electronic payment via the One Stop Vendor Payment Inquiry System. The CTX payment format will contain the total payment amount and details concerning each invoice amount included in the check total. Vendors must contact their bank in order to receive the CTX format, and the depositing bank may charge a fee for this format.

Vendors need to discuss potential charges with their bank. If you want to receive all payments from the State using the Electronic Funds Transfer program, complete and submit form GADX-10 (fax or mail.) General Accounting Division Frequently Asked Questions Authorizing statute: CH 466, Acts of 2022 Questions can be directed to [email protected] .

Frequently Asked Questions I am not licensed currently or I have a license for my existing location but want to buy a second location that will not be licensed initially. Can I still apply for the loan? Yes.

You can apply and applications for new providers and additional locations will be evaluated on a case-by-case basis. You are encouraged to contact the licensing authority to ensure any acquisition that you are considering will qualify for licensure as a child care facility before making a purchase. I want to buy an existing facility or build a new facility.

How long will it take to get the new facility licensed? ​An individual who acquires a new property may have to wait for up to a year to be fully licensed due to state and local zoning requirements, code enforcement, fire marshal inspection, etc. A new build will take even longer because the facility must be built and then licensed. Please check with the licensing authority before buying or building a new facility.

Some locations, such as strip malls for example, are not suitable for child care centers because there isn’t an area outside for a playground. I do not own my home or business. Can I still qualify for a loan?

​Yes. You will need to have proof that your lease will be in effect for the five-year loan repayment period. If you want to borrow more than $50,000, you will need to collateralize the loan using another property that is owned, not leased.

For example, you lease a center but own your home so your home could be used as collateral if you wanted to borrow more than $50,000 to make improvements to the center. Do I have to submit all my receipts once the project is completed? ​No, however, you are subject to a random audit and if you are audited, you will need to provide all receipts as requested.

How will anyone know if I used the money to complete the project that I requested a loan for? ​You need to sign a document at the end of the loan application attesting to completing the project you requested a loan for. You are also subject to a random audit and will need to supply proof of completion if you are audited.

Can the loan be used to expand my driveway so my child care parents have a place to park? ​Yes as long as you can justify that the driveway needs to be expanded due to limited parking and the need for parents to have a parking place to safely drop off their child or children. Can I use the loan to build a deck, outdoor patio, fence or playground to expand my child care’s outdoor play space?

​Yes as long as the project provides outdoor recreation for the child care facility. What is considered a hardship if I cannot repay the loan within 5 years? ​A hardship could be as drastic as a fire or pandemic resurgence that closes the child care facility or as simple as you had a contract with a family that had to relocate to another state so you lost the income from that child or children.

A hardship IS NOT you borrowed more money than you can afford to repay. Do all my documents need to be uploaded into the application portal? ​Yes.

Documents that are required as part of the application have to be uploaed into the portal and cannot be mailed or emailed. Can I use the loan to purchase a vehicle to transport children to school or activities? ​No. The statute establishing the Child Care Revolving Loan Fund does not include loans for vehicles, only child care facility acquisition, expansion, renovation or new build.

I completed the first step of the application and I have not received my password. What should I do? ​Please make sure that the username you used to register does not contain any spaces, commas or special characters.

If you need additional assistance, please email [email protected] . I have problems accessing, completing or submitting my application. Where can I get assistance?

​All application questions can be emailed to [email protected] . Can I use the loan to buy new furniture? ​Yes if the furniture is used for the child care facility.

I owe outstanding state or federal taxes. Can I still qualify for a loan? No. Providers must be licensed and in good standing with the Comptroller and the Internal Revenue Service in order to qualify for a loan.

Providers cannot obtain a loan from the fund to pay outstanding state/federal personal or business taxes. Additionally, a loan from the Fund cannot be used to pay off existing loans (including EIDL and PPP loans) and credit card debt. EXCEPTION – Providers who are on a tax repayment program and are current on their payments may qualify for a loan.

Please be advised that your outstanding tax liability cannot be repaid from your loan proceeds and should be disclosed as outstanding debt on your loan application.