Funding and Financial Relief for Child Care Providers (Archived Resource)

Note: This article was originally published in April 2020 and last updated in May 2020. Some of the information below may be outdated, and several of the original funding programs mentioned have since closed or changed eligibility requirements. 

For the most up-to-date information on current grants and funding opportunities, visit our latest resource: Childcare Grants for Providers.

For additional assistance, please refer to your state's official child care website or the U.S. Department of Health and Human Services – Office of Child Care.

In 2020, the COVID-19 pandemic created unprecedented challenges for child care providers across the United States. Many faced temporary closures, enrollment drops, and operational difficulties. During this time, Winnie compiled this resource to help child care programs navigate available financial relief options.

Although many of these programs were designed for short-term relief, the information below provides historical context on the types of support that were made available to small businesses and early childhood education programs during the pandemic.

1. Federal Relief Programs (2020)

CARES Act Overview

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was a $2 trillion federal stimulus package aimed at stabilizing the economy. It included several key programs to assist small businesses and nonprofits, including child care providers.

Programs under the CARES Act included:

• Paycheck Protection Program (PPP): Low-interest loans to help small businesses retain employees. Many child care providers qualified for forgivable loans covering payroll and essential expenses.
• Employee Retention Credit: Tax credits to encourage employers to keep staff on payroll.
• Economic Injury Disaster Loans (EIDL): Provided low-interest loans and grants to cover fixed debts and operational costs.

Note: These programs have since expired, but similar forms of business relief may be available through current SBA initiatives or state-level funding.

2. Other Federal Assistance

• Families First Coronavirus Response Act (FFCRA): Required certain employers to provide paid sick leave related to COVID-19 and offered payroll tax credits for compliance.
• Unemployment Support: Expanded eligibility to include independent contractors and self-employed workers, providing additional weekly payments through mid-2020.
• Tax Filing Extensions: The IRS extended the 2020 filing deadline to July 15, 2020, to give businesses and individuals extra time to organize finances during the crisis.

3. Private & Community-Based Relief (2020)

In addition to federal programs, many private companies and organizations provided small business grants and emergency relief for child care programs.

Examples included:

• Winnie Provider Relief Initiative: Offered one month of free advertising to providers affected by COVID-19 closures.
• Facebook Small Business Grants: Provided cash grants and ad credits to eligible small businesses.
• GoFundMe Small Business Relief Fund: Matched small business fundraising campaigns with grants.
• Hello Alice Business for All Grants: Awarded emergency funding to diverse small business owners, including those in early childhood education.

Most of these initiatives were temporary and have now concluded. Providers seeking financial help today can explore state child care stabilization grants or ongoing business development programs through SBA.gov.

4. State-Level Relief (2020 Examples)

During the pandemic, several states established their own financial assistance programs for early childhood education providers. Examples included:

• California: Small Business Loan Guarantee Program and hardship grants for providers.
• Illinois: Small Business Resiliency Fund to help maintain operations.
• Texas: AssistHer Emergency Relief Grants supporting women-owned child care businesses.
• Washington: Working Washington Small Business Emergency Grants.

Many of these emergency programs ended after initial funding rounds. Current child care support may now be available under Child Care Development Block Grant (CCDBG) or state-funded workforce stabilization programs.

5. Moving Forward

While the programs listed above represent a critical moment in child care relief history, today’s funding landscape has shifted toward long-term sustainability rather than emergency relief. Providers can now access:

• State and local stabilization grants for ongoing operations.
• Tax incentives and workforce support through the American Rescue Plan (ARP).
• Early education workforce initiatives aimed at retention and quality improvement.

For updated resources, visit:

• ChildCare.gov
• Office of Child Care (OCC)
• Winnie’s Provider Resources

This article, originally published in 2020, provided financial guidance for child care providers navigating the economic challenges of COVID-19. Since most listed programs have ended, readers are encouraged to consult current government and state resources for active funding opportunities.

FAQ

Is this information still current?

No. Most programs listed were active between 2020 and 2021. Please refer to updated federal or state websites for active relief programs.

Can I still apply for the Paycheck Protection Program (PPP)?

No. The PPP program officially closed in 2021. However, other small business loan options may be available through the SBA.

Where can I find current financial assistance for child care providers?

Visit ChildCare.gov or your state’s early childhood department website for updated assistance programs.

Why is this article still available?

This post is archived and maintained by Winnie for historical reference. For the latest information on active programs and provider resources, please visit winnie.com/providers.