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Retention Bonus
CLOSED

Bonuses available to child care providers and employees who were providing child care during the peak of the pandemic. 

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OVERVIEW

The Child Care Retention Bonus program addresses the reality of a high turnover rate in the industry. By providing retention bonuses, we hope to stabilize the workforce and show appreciation for those who worked during the peak of the COVID-19 pandemic. Bonuses are available to both owners of child care facilities and individual employees.

​

APPLICATIONS ARE CLOSED

Providers Retention Bonus

Retention Bonuses For Centers & Family Child Care Providers 

PLEASE NOTE: APPLICATIONS ARE NOW CLOSED

Each licensed child care center or family facility that can show that they were open between July 1, 2022, and June 30, 2023, will be eligible for the retention bonus. Bonus amounts are based on the size and type of facility and are as follows:

  • Child Care Centers - $6,000
  • Large Family Facility (up to 14 children) - $5,000
  • Small Family Facility (up to 8 children) - $4,000

 

The bonus will be paid in two installations; the first will cover the eligibility period of July 1, 2021 - June 30, 2022, and the second will cover July 1, 2022 - June 30, 2023. Applications are open for the second round.

Steps to Apply

2. COMPLETE ALL DOCUMENTS

  • Written or typed applications will be accepted. 

  • If you have any questions or challenges with the application, please reach out to Jade at jade@northedgefinancing.org

3. SUBMIT YOUR

APPLICATION

  • Email the completed application to jade@northedgefinancing.org with a subject line Facility Owner Retention Bonus Application 

  • Or mail a physical copy to 707 K St. Eureka, CA 95501, c/o Jade Hoff

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Paper and Pencil
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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).
  • 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)
  • 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.
  • What is the interest rate?
    7.5%
  • 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.
  • Can I buy inventory?
    No.
  • Can I participate in this program multiple times?
    No.
  • What if I have multiple centers?
    One loan per center location will be eligible to participate in the loan forgiveness program.
  • How much can I borrow?
    The maximum is $10,000.
  • 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.
  • 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
  • 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.
  • What if I had COVID-related closures?
    COVID-related closures do not impact your eligibility.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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.
  • What if I worked for multiple employers during this time period?
    Please gather a separate Employment Attestation for each facility at which you worked.
  • What if I was out of work due to COVID closures?
    Closures due to COVID-19 do not impact eligibility.
  • 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.
  • 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.
  • Can the stipend be applied to outstanding balance?
    The stipend can be applied to any balance owed to the provider.
  • What are the other eligibility requirements?
    Your child must be 5 years or under and enrolled at a licensed child care home or center.
  • If child attends only occasionally, can the stipend be applied?
    Yes, the parent just states which provider is getting the stipend credit, and they are only eligible for one.
  • What are the income requirements for this program?
    Here are the income guidelines for this program. We set our income threshold to 105% of the state subsidy requirements so we can serve families that make too much to qualify for the state subsidy. If you didn't know, the income requirements have risen significantly recently, so we've included the current state guidelines for reference. We encourage you to reach out to Changing Tides Family Services if you may qualify for the state subsidy.
  • 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. If the applying parent only pays for a portion of the care, they should indicate that this is a part-time application.
  • 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.
  • What if I do not receive a state subsidy?
    You do not need to receive a state subsidy to qualify for this program, but you must meet the income requirements for this program that are listed above. Income requirements for the state subsidy program 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.
  • 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.
  • What does my provider need to do to receive this?
    To receive this subsidy, your provider must sign the Parent Provider Agreement that will be sent for each subsidy and have a current W9 on file with North Edge.
  • Does the child need to attend full time?
    There are two subsidy amounts, one for full time and one for part time.
Employee Retention Bonus

Retention Bonuses For Employees

Any individual who worked in child care or operated a facility between July 1, 2021, and plans to remain in operation until at least June 30, 2023, is eligible for the program.

 

Bonus amounts will be based on the hours you worked during the operation period. 

  • Full Time Employees (21-40 hours/week) - $3,000
  • Half Time Employees (12-20 hours/week) - $2,000
​

Payments will be made in 2 installments, one for the period between July 1, 2021, and  June 30, 2022. The second installation will be made following the end of the period between July 1, 2022, and June 30, 2023.

Steps to Apply

2. COMPLETE ALL DOCUMENTS

  • Written or typed applications will be accepted. 

  • If you have any questions or challenges with the application, please reach out to Jade at jade@northedgefinancing.org

3. SUBMIT YOUR

APPLICATION

  • Email the completed application to jade@northedgefinancing.org with the subject line "Employee Retention Bonus Application" 

  • Or mail a physical copy to 707 K St. Eureka, CA 95501, c/o Jade Hoff

Envelope
Download Arrow
Paper and Pencil
  • 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).
  • 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)
  • 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.
  • What is the interest rate?
    7.5%
  • 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.
  • Can I buy inventory?
    No.
  • Can I participate in this program multiple times?
    No.
  • What if I have multiple centers?
    One loan per center location will be eligible to participate in the loan forgiveness program.
  • How much can I borrow?
    The maximum is $10,000.
  • 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.
  • 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
  • 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.
  • What if I had COVID-related closures?
    COVID-related closures do not impact your eligibility.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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.
  • What if I worked for multiple employers during this time period?
    Please gather a separate Employment Attestation for each facility at which you worked.
  • What if I was out of work due to COVID closures?
    Closures due to COVID-19 do not impact eligibility.
  • 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.
  • 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.
  • Can the stipend be applied to outstanding balance?
    The stipend can be applied to any balance owed to the provider.
  • What are the other eligibility requirements?
    Your child must be 5 years or under and enrolled at a licensed child care home or center.
  • If child attends only occasionally, can the stipend be applied?
    Yes, the parent just states which provider is getting the stipend credit, and they are only eligible for one.
  • What are the income requirements for this program?
    Here are the income guidelines for this program. We set our income threshold to 105% of the state subsidy requirements so we can serve families that make too much to qualify for the state subsidy. If you didn't know, the income requirements have risen significantly recently, so we've included the current state guidelines for reference. We encourage you to reach out to Changing Tides Family Services if you may qualify for the state subsidy.
  • 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. If the applying parent only pays for a portion of the care, they should indicate that this is a part-time application.
  • 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.
  • What if I do not receive a state subsidy?
    You do not need to receive a state subsidy to qualify for this program, but you must meet the income requirements for this program that are listed above. Income requirements for the state subsidy program 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.
  • 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.
  • What does my provider need to do to receive this?
    To receive this subsidy, your provider must sign the Parent Provider Agreement that will be sent for each subsidy and have a current W9 on file with North Edge.
  • Does the child need to attend full time?
    There are two subsidy amounts, one for full time and one for part time.
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