Loan Program Will Give Boost To Child-Care Center Operators

Quality child care is important to every working parent. That’s why one Spokane group has initiated a project to help child-care providers improve service to the community.

The Spokane County Child Care Loan Fund was set up by Northwest Regional Facilitators’ Family Child Care Resources Division. The goal is to reduce or wipe out financing barriers that child-care providers face, said Karen Seitz, project director. The project has been in the works for six months; organizers hope to start shelling out funds by next January.

The revolving-loan fund will offer loans of up to $5,000 to home child-care centers and up to $25,000 to center-based providers.

Child care is an economic issue deserving of community recognition and support, said Seitz. It enables parents to work, enhancing a company’s productivity.

“As a working parent, quality, stable child care allows me to focus 100 percent on my job. I don’t worry about my kids,” she said.

Seitz, who worked as a banker for 12 years, explained some of the difficulties child-care providers face when applying for loans.

Child care isn’t an incredibly profitable business. Many times, incomes of child care providers cannot guarantee enough long-term financing; this discourages banks from loaning money.

Many providers lack experience in management and finances, which means they often cannot provide financial records to support their loan requests.

The loans will be priced to cover administrative costs of the fund. But discounted pricing will be available for providers filling gaps in child care needs, for example, those who serve low-income families, offer odd-hour service, or special needs care, infant and/or toddler care. Borrowers’ ability to repay will determine repayment terms.

The money can be used to renovate facilities to meet licensing requirements or enhance program quality. Funds may also be used to increase operating efficiency or staff training. After an assessment of the provider’s needs, technical assistance and training will be offered before a loan is granted.

A collaboration of community partners will provide training on small business, early childhood education, health and safety issues. And as new needs are identified, training courses to meet those needs will be developed.

In the long run, this loan fund will benefit everyone, said Seitz. If Spokane can say “we have enough quality, affordable child care for everyone,” it should encourage potential employees and employers to come to Spokane.

The project needs some help to get up and running, though. Businesses interested in investing in the revolving-loan fund are needed. Any child-care provider willing to help provide training or technical assistance would aid the process tremendously.

Finally, organizers are trying to develop the “great group,” a board of working adults committed to change. There is no definitive time commitment on the board. If you want to take part, a role will be available for any time you contribute. Seitz said the commitment lies in creating what the community needs.

For more information or to contribute, contact Seitz at 484-6733, or by e-mail at kseitz@NRF.org.

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