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Facility Improvement Forgivable Loans

Allowing child care facilities to access funds and invest in their businesses.

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The Facility Improvement Loan Guarantee program will repay SBA loans up to $10,000 following the completion of approved projects. Projects should allow childcare providers to improve the efficiency, safety, and learning at their facility or allow them to serve younger children.

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Facility Improvement Loan Guarantee Program

Child care facilities are unique businesses that often don’t see a clear dollar-for-dollar return on investment, which makes it difficult for them to access traditional funding and invest in improvements. This program will provide SBA loans of up to $10,000 for approved projects.


Once the project(s) are complete, AEDC will use ARPA funds to pay off the loan balance. Payments will be deferred for six months.


What this means for child care business owners is that they can access up to $10,000. As long as the project is completed within six months, they will make no payments on the loan. 

Next Steps...

  1. Download our template for the Project Plan. Complete it and submit a PDF to Jade at

  2. Once the project plan is approved, Jade will send a .pdf copy of the loan application.

  3. Before the loan disbursal, we will coordinate a site visit and get SBA document signatures.

  4. The applicant will complete the project.

  5. Once the project is complete, we will schedule a second site visit to verify the use of funds.

  6. Applicant submits receipts/applies for the grant.

  7. AEDC pays off the loan.

Project Plan

A project plan template will be provided. The primary purpose is to  answer the following questions:

  1. Describe your planned project, including how this project will improve your childcare facility. 

  2. Provide an estimate of your project budget, including the SBA loan you are applying for and any other funds you may use to complete it. 

Project Examples

  • Investment in equipment such as cribs, cots, tables, highchairs, indoor and outdoor toys, playsets, bathroom accessories, strollers, changing stations, etc.

  • Investment in the environment, such as any improvement to indoor or outdoor play space, adding fencing, lighting, flooring, paint

  • Investment in modernization/efficiency, such as computer equipment, cameras, and subscriptions for childcare software

Unacceptable Uses of Funds

  • Employee payroll or bonuses

  • Taxes

  • Repayment of other debts or loans

  • Improvements to the non-childcare portion of the home (for home-based facilities)

Steps to Apply



  • Jade will follow up with the application and set up the next steps to proceed with your loan. 

  • Once the loan is accepted, you can complete your project or facility renovations!


  • Once the project is complete, we'll schedule a visit to verify the use of your funds.

  • Keep all your receipts and paperwork from your project, so you can submit them and apply for the loan forgiveness grant. 

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