Family Childcare Start-up Forgivable Loan Program
FAMILY CHILD CARE START-UP
FORGIVABLE LOAN PROGRAM
Managed by the St. James Economic Development Authority
The Watonwan County Family Child Care Start-Up Forgivable Loan Program provides an incentive to start a new family child care service in Watonwan County. The program provides a matching forgivable loan for actual expenses relating to the cost of opening a family child care business in Watonwan County, up to $5,000 per provider. Qualifying expenses must be approved by the Watonwan County Child Care Licensor and the St. James EDA Director. Approved requests will be funded on a first-come/first-served basis until all funds are expended.
1. Only new family child care providers located within Watonwan County are eligible for the loan program.
2. All items for which the child care provider is requesting funds must be approved by the Watonwan County Licensor and
the St. James EDA Director.
3. Funds may be requested for the following items (up to):
- Licensing fee
- Zoning fees
- Background study fee
- Pre Licensing training
- Ongoing training
- Fire Marshal visit, if needed
- Smoke Detectors
- Fire extinguishers
- Outlet plugs
- Stationary baby gate
- First aid kits
- Pack n Play
- Pack n Play sheet
- High chair/booster seat
- Fluid Cleanup kit
- Potty seat/chair
- Toys for each age group
- Craft supplies
4. Other uses may also be eligible if prior approval is obtained by the Watonwan County Licensor and the St. James
Economic Development Authority.
LOAN DISBURSEMENT & REPAYMENT
Following loan approval, the Lessee shall execute a promissory note. Awarded loan funds will then be dispersed to the child care provider.
The loan will not accumulate any interest.
The amount of the loan will be due and payable to the St. James EDA one (1) year following the distribution of loan funds. If, however, the child care business to which the loan was granted remains in business in one (1) year following the distribution of loan funds, the loan shall be forgiven by the St. James EDA. Loan forgiveness will be granted at a rate of 1/4 per quarter (3 months).