New loan program assists Maryland childcare facilities with capital improvement projects

MARYLAND – Governor Wes Moore’s administration recently announced $11.5 million going to support childcare facilities across the state.

“We need to pay wages, rent, and keep the lights on. So, it’s nice to finally have some money that’s dedicated to just taking care of the center a little bit and giving the building some much needed TLC,” Stewart said.

Amy Stewart is the owner of the Nightwatch Childcare Center in Salisbury. They’re just one of more than 60 recipients in the first round of Maryland’s Child Care Capital Support Revolving Loan Fund awards.

“We go to the bank and they’re not handing out a ton of money to businesses, especially childcare centers because there have been a lot that have closed,” Stewart said.

It’s a partnership between The Maryland Department of Commerce and The Maryland State Department of Education. The program provides zero interest loans up to $500,000 to childcare providers that can go towards the purchase of a new facility, the expansion of an existing one, or new equipment. “It’s a 5-year loan, so it’s very flexible and not having that interest there is very helpful,” Maryland Department of Commerce Finance Director Darla Garrett said.

Stewart says that $10,000 award will help with cosmetic upgrades to their building, new supplies, and grow their play area to service more kids. “Even though licensing may say your building is this big and you can hold this number of kids, if we don’t have the funding to make sure we have cribs, changing tables, and all the things that we need for the kids we’re able to serve that’s money we’re leaving on the table,” Stewart said.

Garrett says the move is another step by Governor Wes Moore’s administration to prioritize early childhood education. “We want to help those working parents out there and to make sure our children are ready when they enter the regular school environment,” Garrett said.

This opportunity isn’t closed to providers with actual facilities, but homecare providers are able to take advantage of this funding as well.

In this first round, only three childcare centers on the shore were awarded funding. The Maryland Department of Commerce says they hope to expand their outreach efforts.

The second round of funding is expected to open this fall.

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