Child Care Facility Revolving Loan Fund
About
The Child Care Facility Revolving Loan Fund operates as a partnership between NMFA and the New Mexico Early Childhood Education and Care Department (ECECD).
The Child Care Facility Revolving Loan Fund was created to increase access to quality child care in New Mexico, particularly in underserved communities. The Fund has approximately $11.5 million available for low-interest loans to child care providers in New Mexico to help with renovation, expansion, working capital, construction of a new building, or other facility needs of child care providers.
Visit ECECD’s website for more information.
How to Apply
Information
Visit ECECD’s website for detailed program information and FAQs
The following is information that may be helpful for potential applicants, but is not a list of all the requirements. The rules and policies for the program are available under the Resources section at the top right, and more information is available at ECECD’s website.
Eligibility
Applicant Eligibility
In order to be eligible to apply to the CCRLF, a child care provider must be:
- A privately owned facility, one owned and managed by a nonprofit organization, or one located on tribal lands and managed by tribal governments
- A person, entity, or employer either licensed by ECECD to provide child care to infants, toddlers, and children or in receipt of a provisional license from ECECD
- In good standing with ECECD licensure
- In compliance with all applicable federal, state, and local laws and regulations
Project Eligibility
In order to be eligible, a project must be for one or more of the following:
- Health and safety improvements to a child care facility, including repair, maintenance, expansion, and operation of a facility; or
- Creation of a new child care facility; or
- Operating capital to run a child care facility
Loan Terms
- Loans may be used for capital projects, including expansion, renovations and repairs, or construction of a new building. Loan terms for capital projects will be interest-only for up to two years then convert to monthly principal and interest payments for up to 20 years.
- Loans may also be used for operating capital with term loans up to 18 months with monthly principal and interest payments, or with lines of credit up to six months that may be renewed for another six months.
- Loan amounts will be between $100,000 and $2.5 million.
- No loan may exceed 20% of the Child Care Facility Revolving Loan Fund
- Interest rates are fixed at 2%. Loans may be prepaid at any time with no additional cost to the borrower.
- Borrower equity, personal guarantees, and collateral are required
Application Process
- Potential borrowers will submit the application and all required documents in the CCRLF application portal.
- The application review process will begin with ECECD determining applicant and project eligibility.
- If an applicant and project are eligible, ECECD will determine whether to prioritize the project. Applications with prioritized projects are referred to NMFA for underwriting.
- NMFA will underwrite applications according to its loan policies to determine the applicant’s ability to repay the loan. Underwritten applications will enter the board approval process which includes review by internal and external committees, and a review by the NMFA Board of Directors.
- Applications approved by the NMFA Board will enter the closing process. Loans will be administered by NMFA.
Contract for Services
Contract for Services – Definition
Contract for Services is an agreement between NMFA, ECECD, and an eligible child care provider to provide a specified number of child care slots for families receiving child care assistance from ECECD as adequate legal consideration for a loan.
Contract for Services – Eligibility
- Must be located in a designated child care desert in New Mexico; and
- Must provide care during non-traditional hours; and
- Must demonstrate at least 50% of children served receive child care assistance; and
- Must demonstrate the number of children served increased by at least 10%
- Providers must meet all of the above for 36 months within the first 48 months following the completion of the project.
Contract for Services – How It Works
- Once a provider certifies and ECECD verifies that it has met all of the requirements for Contract for Services, NMFA will decrease the loan by 25% of the project amount and modify the debt service schedule.
- NMFA will decrease another 10% of the project amount if at least 50% of the expanded child care capacity is filled by infants and toddlers.
- The maximum abatement amount is $750,000.
- Operating capital is not eligible for Contract for Services.
NMFA/ECECD partnership
The Child Care Facility Revolving Loan Fund is a partnership between NMFA and ECECD.
- ECECD will determine project eligibility and priority. Prioritized applications will go to NMFA for underwriting.
- NMFA will underwrite the loan applications to determine the applicant’s ability to repay the loan. Approved loans will be administered by NMFA.