Child Care Capital Support Revolving Loan Fund
About this page. This page explains the Child Care Capital Support Revolving Loan Fund in plain language. The Fund is authorized under Chapter 466, Acts of 2022 - PDF. If anything on this page conflicts with the statute, the statute controls.
Applications are closed
The application period closed January 30, 2026. Commerce has indicated the next round of funding will occur during the 2026 calendar year but has not yet posted dates.
Check the Commerce program page for updates, or email [email protected] to ask when the next round opens.
Program Status
The program is active but between funding rounds. The most recent application period closed January 30, 2026.
What This Program Does
The Child Care Capital Support Revolving Loan Fund provides no-interest loans for capital expenses to child care providers who participate in the Maryland State Department of Education’s Child Care Scholarship Program.
The Fund is operated by the Maryland Department of Commerce with support from the State Department of Education (MSDE).
Plan before you apply. The Maryland Community Business Compass can help you assess demand before applying. It shows where families need child care most, which helps validate location, expansion, or capacity decisions tied to this loan. Compass also connects you to additional financing options and business support.
Who This Is For
Child care providers who are licensed by MSDE and are participants in MSDE’s Child Care Scholarship Program.
Priority is given to Maryland child care providers:
- Located in underserved communities or areas designated by MSDE 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
- Serving children ages 2 and younger
Benefits
- No interest
- No application fees
- No prepayment penalties
Loan Terms
- You must possess a valid child care license to apply
- Loan proceeds must be used for a child care facility operating in Maryland
- Loans must be repaid within five years after receiving the proceeds
- Additional funds may be added to the project by the owner, sponsor, or another intermediary
- Collateral is required and may include personal guarantees, liens on business assets, and pledges of accounts
If you lease your facility. You can still qualify, but you will need proof that your lease runs through the five-year repayment period. To borrow more than $50,000, you must secure the loan with another property you own — for example, your home.
Eligible Uses
Loans may be used only for capital expenses related to a child care facility:
- Acquisition — purchase of an existing child care facility
- Expansion — construction or purchase of additional space for an existing facility
- Renovation — repairs, renovations, or upgrades to an existing facility
- New construction — construction of a new child care facility
Examples of what qualifies
Commerce has confirmed the following are eligible:
- Driveway expansion — if you can justify that it is needed for limited parking so parents have a safe place to drop off children
- Decks, patios, fences, and playgrounds — if the project provides outdoor recreation for the child care facility
- Furniture — if it is used for the child care facility
What loans cannot be used for
- Businesses other than child care providers
- Refinancing existing debt — loans are intended for current projects
- Paying off existing loans, including EIDL and PPP loans, or credit card debt
- Working capital or operations — for example, marketing, payroll, lease or rent, supplies, utilities
- Vehicles, including vehicles used to transport children
- Outstanding state or federal taxes
Documents You Will Need to Apply
Work with your advisor(s) to complete the application. Incomplete applications cannot be considered. Be prepared to provide:
- A listing of all owners and percentages of ownership, and a resume for the principal owner(s)
- A valid MSDE child care license
- Evidence of participation in the MSDE Child Care Scholarship Program
- A description of the facility — when established, where located, staffing, enrollment figures, programs provided
- A summary of how the loan will be used
- Financial projections demonstrating the capacity to meet operating expenses and repay the loan within five years (a template is provided on the application)
- A current personal financial statement for the 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)
- A description and estimated value of the collateral to secure the loan
How to Apply
Applications are submitted through the online portal. All required documents must be uploaded into the portal — they cannot be mailed or emailed.
For help with the application, email [email protected].
Registration tip. If you complete the first step of the application and do not receive your password, check that the username you used does not contain spaces, commas, or special characters. If you still need help, email [email protected].
How You Receive Your Funds
Payments from the State are made by electronic funds transfer (EFT). The State requires all contractors to be registered to receive payments by EFT before any contract exceeding $200,000 is approved by the Maryland Board of Public Works, and all vendors are encouraged to register.
To register, complete and submit Form GADX-10 to the General Accounting Division:
- Fax: 410-974-2309
- Mail: EFT Registration, General Accounting Division, P.O. Box 746, Annapolis, MD 21404-0746
Frequently Asked Questions
Child Care Capital Support Revolving Loan Fund - FAQs
Yes. Applications for new providers and additional locations are evaluated case by case. Contact the licensing authority before making a purchase to confirm that any acquisition you are considering will qualify for licensure as a child care facility.
An individual who acquires a new property may wait up to a year to be fully licensed, because of state and local zoning requirements, code enforcement, fire marshal inspection, and similar steps. A new build takes longer still, since the facility must be built and then licensed.
Check with the licensing authority before buying or building. Some locations are not suitable for child care centers — a strip mall, for example, may have no outdoor area for a playground.
Yes. You will need proof that your lease will be in effect for the five-year repayment period. To borrow more than $50,000, you must collateralize the loan with another property you own rather than lease.
Yes, as long as you can justify that the driveway needs to be expanded because of limited parking and the need for parents to have a safe place to drop off children.
Yes, as long as the project provides outdoor recreation for the child care facility.
Yes, if the furniture is used for the child care facility.
No. The statute establishing the Fund covers child care facility acquisition, expansion, renovation, and new construction only — not vehicles, including vehicles used to transport children.
Generally no. Providers must be licensed and in good standing with the Comptroller and the Internal Revenue Service. Loan proceeds cannot be used to pay outstanding state or federal taxes, to pay off existing loans (including EIDL and PPP loans), or to pay credit card debt.
Exception. Providers on a tax repayment program who are current on their payments may qualify. The outstanding tax liability cannot be repaid from loan proceeds and must be disclosed as outstanding debt on the application.
Not routinely. You sign a document at the end of the application attesting that you completed the project you requested the loan for. You are also subject to a random audit, and if audited you must provide all receipts and proof of completion as requested.
A hardship could be as serious as a fire or a pandemic resurgence that closes the facility, or as ordinary as losing income because a contracted family relocated out of state.
Important. Borrowing more money than you can afford to repay is NOT considered a hardship.
Yes. Required documents must be uploaded into the application portal and cannot be mailed or emailed.
Legal Notices and Required Language
This program is authorized under Chapter 466, Acts of 2022 - PDF (House Bill 993).
Program resources:
Applicants should consult the authorizing statute and applicable regulations for the complete legal requirements governing this program.
Contact
Questions can be directed to [email protected].