Parent Subsidy Program
Program Overview
The Parent Subsidy program addresses the reality of high child care costs faced by Humboldt families. By providing $1,200 per child to offset the cost of child care for eligible families we hope to alleviate some of the cost burden felt by families. This bonus is paid in monthly installments directly to the family’s licensed child care provider. By paying the provider directly, this program will not count as income for the family, which may impact their eligibility for means tested programs.
Steps to Apply
1. DOWNLOAD REQUIRED DOCUMENTS
2. COMPLETE ALL DOCUMENTS
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Written or typed applications will be accepted.
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If you have any questions or challenges with the application, please reach out to Jade at jade@northedgefinancing.org
3. SUBMIT YOUR
APPLICATION
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Email the completed application to jade@northedgefinancing.org with a subject line Parent Subsidy Program
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Or mail a physical copy to 707 K St. Eureka, CA 95501, c/o Jade Hoff
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What happens if I do not complete the project before the deadline?Interest and payments are deferred for the first six months, then the provider will be responsible for making payments on the loan (interest and principal).
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What kind of projects or expenses are not eligible for this program?Employee payroll or bonuses Taxes Repayment of other debts or loans Improvements to non-childcare portion of the home (for home-based facilities)
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What is the deadline for applying?The funds are available on a first-come, first-served basis, and we will accept applications until the funding is exhausted. We expect to be able to provide up to 40 these loans.
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What is the interest rate?7.5%
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Are there any fees that I am responsible for?No! The program is paying for the credit check, UCC filing fee, accrued interest, and loan origination fees. If the participant does not complete the project in the six-month time frame, they will be responsible for making the loan payment.
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Can I buy inventory?No.
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Can I participate in this program multiple times?No.
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What if I have multiple centers?One loan per center location will be eligible to participate in the loan forgiveness program.
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How much can I borrow?The maximum is $10,000.
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What if my project comes in under budget?Suppose your project comes in under budget, and you have money left over. In that case, you can submit an amendment to your project plan to add additional approved purchases.
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What kind of projects are allowed?Investment in equipment such as cribs, cots, tables, highchairs, indoor and outdoor toys and playsets, bathroom accessories, strollers, changing stations, etc. Investment in the environment, such as any improvement to indoor or outdoor play space, adding fencing, lighting, etc. Investment in modernization/efficiency, such as computer equipment, cameras, and subscriptions for childcare software
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Is there a deadline for this application?Retention bonuses will be distributed on a first-come, first-served basis. Funds will be distributed approximately 30 days after the application has been approved.
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What if I had COVID-related closures?COVID-related closures do not impact your eligibility.
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What if I operate multiple centers?A grant is available for each address, not each individual license. If you operate multiple centers, please submit a separate application for each.
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Is this bonus taxable?Yes, there are tax implications for receiving this bonus. Since everyone’s situation is different, we recommend working with a tax consultant to understand how it is likely to impact you.
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What if my program closes for the summer?If your program closes for the summer, you must show that you were open as of May 1, 2021 (or earlier) and remain open until the start of your summer session date in 2023.
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My facility has two owners. Are we eligible for two bonuses?No, each facility is only eligible for one retention bonus. The owner that does not apply for the facility bonus can apply for the employee retention bonus if they work directly with children.
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I opened my facility in 2022. Am I eligible for this bonus?Yes! Facilities that opened after the start of the first eligibility period (after July 1, 2021) will be eligible for the second disbursement of the retention bonus. Applications for the second round will be available after June 30, 2023.
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I am the director of a non-profit center. Are we eligible for the retention bonus?The facility retention bonus is only available for for-profit childcare facilities, but the employee retention bonus is available for anyone providing childcare in a licensed facility.
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What if my program closes for the summer?If your program closes for the summer, you must show that you were employed as of May 1, 2021 (or earlier) and remain employed until the start of the summer session date in 2023.
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What if I held a part-time position for a part of the timeframe and a full-time position for another part?The bonus will be prorated based on the number of months in each position. For example, if you worked half-time for six months and full-time for 18 months, you would be eligible for $2,750 (total, paid in two installments). If you work part-time for one year and full-time for one year, you would be eligible for $2,500.
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What if I split my duties between child care and administrative tasks?The bonus is based on time spent working directly with children. If you worked an average of 12-20 hours per week on child care tasks, you will be eligible for the part-time bonus. If you average over 21 hours per week on child care tasks, you will be eligible for the full-time bonus.
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What if I worked for multiple employers during this time period?Please gather a separate Employment Attestation for each facility at which you worked.
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What if I was out of work due to COVID closures?Closures due to COVID-19 do not impact eligibility.
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Is there a deadline for this application?Retention bonuses will be distributed on a first-come, first-served basis. Funds will be distributed approximately 30 days after the application has been approved.
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Is the bonus taxable?Yes, there are tax implications for receiving this bonus. Since everyone’s situation is different, we recommend working with a tax consultant to understand how it is likely to impact you.
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What are the other eligibility requirements?Your child must be 5 years or under and enrolled at a licensed child care home or center.
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What are the income requirements for this program?We are following the state subsidy guidelines for this program:
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What if my child has multiple households/split custody?This subsidy is a per family subsidy, so each household would qualify to receive this benefit. A separate application must be completed for each household.
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What if my child has multiple providers?This subsidy will only be paid to one provider per child, so you must choose a primary provider when you fill out the application.
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What if I do not receive a state subsidy?While you do not need to receive a state subsidy to qualify for this program, you must meet the income requirements. Income requirements have gone up significantly in the last few years and we think there might be many families who qualify and don’t know it yet! Our hope is that families will learn they are eligible to receive the state subsidy as a result of this program. This subsidy is administered by Changing Tides Family Services, if you choose to, you can also apply for their services.
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Is this stipend taxable?The stipend will be paid directly to providers, so it will count as a part of their income. It will not be income for the receiving family.
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What does my provider need to do to receive this?If your provider does not accept state subsidy payments from Changing Tides Family Services, they will need to enroll to receive this stipend. This does not mean they need accept state subsidy payments.