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Montana Child Care Loan Fund-Helping child care businesses grow

The Montana Child Care Resource & Referral Network and Montana Community Development Corporation announce the availability of the Montana Child Care Loan Fund, designed to assist child care businesses to expand their facilities and improve their programs.

The loan fund offers financing for a range of purposes including construction, equipment purchases, facility construction, expanded handicapped accessibility, staff education, and temporary operating capital. MCCR&R and MCDC are committed to promoting lending to rural, urban, home-based and center-based child care businesses who might not otherwise have access to commercial loans.

Eligible applicants include licensed child care centers and registered family and group day care homes. Local child care resource & referral programs will be asked to verify that applicants have no history of serious program fraud or substantiated licensing complaints.

Applicants are encouraged to detail any previous participation in Best Beginnings programs, including mini-grants, merit pay, provider grants, infant-toddler demonstration projects, or CDA/higher education programs. It is strongly recommended that applicants demonstrate placement of Level II or higher on the Montana Early Care and Education Practitioner Registry and Career Path.

Applicants will be directed to complete a 3-step loan application process. Loan forms can be found online at http://www.mtcdc.org/forms.html. The first step involves completion of an application form and payment of a $20 fee to cover the cost of a credit check.

The second step assembles information for review by a loan committee, including a business plan, with the assistance of the local Small Business Development Center. Applicants can download the required Request for Counseling at http://www.mtcdc.org/forms.html.

The third step is completion of a simple checklist of documentation needed before payment can be disbursed.

Loan fund amounts, interest rates, and collateral will be determined on a case-by-case basis. Larger loans may involve a combination of several different loan products. Depending on loan terms, borrower’s assets and credit history, interest rates will generally range from 8 to 12%.

MCDC and MCCR&R will connect applicants with the child care-specific business instruction they need to become loan ready, strengthening both the loans and the stability of Montana’s child care industry as a whole.

To apply, contact the Janet Bush at the Montana Child Care Resource & Referral Network (406-549-1028), or Larry Williams at the Montana Community Development Corporation (728-9234, extension 207).

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