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Current Childcare Providers

Current Childcare Providers

Current Childcare Providers


Is there financial assistance available to help my business during this time? Can childcare providers apply for the Payroll Protection Program?

The federal government has created the Payroll Protection Program (PPP) to help small businesses (including child care providers) keep their workers on payroll and stay afloat.

The PPP allows small businesses to apply for a forgivable loan to keep their workers on the payroll. Loans may be forgiven in all or in part if employees are kept on the payroll for eight weeks and the funds are used toward payroll, rent, mortgage interest or utilities.

What child care providers need to know:

  1. Apply early. The program will award loans on a first come, first served basis with funding caps in place, and providers are encouraged to apply early.
  2. You apply for PPP directly through your local lender. Start by contacting your local bank or lender and ask them if they are participating in PPP. If they are not participating, ask them if they have a relationship with a bank or credit union that is.
  3. Eligible providers can borrow up to 2.5 times average monthly payroll or up to $10 million, whichever amount is less. This amount is intended to help cover 8 weeks of payroll expenses as well as mortgage interest, rent, and utilities.
  4. If you meet all the requirements of the loan, it becomes a grant and is forgiven for the total of an 8-week period of payroll, rent, leases, utilities and existing interest payments on mortgages. Part of the loan can also be used for other business-related expenses, like supplies, but that portion of the loan will not be forgiven. 

Where to get help:

  • The state of Michigan has created a website to help you learn more and decide if this opportunity is right for you. Visit Michigan Paycheck Protection for more detailed information, FAQs, a list of authorized lenders, webinars, and more.
  • The First Five Years Fund has also created an FAQ especially for child care providers. This two page summary is a helpful tool to determine if you qualify and if the program matches your needs.

Every business is different. If you need advice about your business, your local lender or financial advisor is the best resource.