Childcare Loan Program

Image of child playing

Purpose of Childcare Loans: Create more childcare capacity in Juneau by assisting new or existing 
childcare providers to access, improve or expand the physical infrastructure needed to deliver a 
quality childcare program to more families. Childcare provider must be licensed by the State of 
Alaska and offer full time care (at least 30 hours per week).

Use of funds: Loan proceeds can be used to hire additional staff, assist with rent payments, 
purchase FF&E (furniture, fixtures and equipment), classroom supplies and materials, pay for 
modifications, major renovations, and expansions. Equipment purchases or upgrades that enhance the 
quality of services delivered are also eligible. Priority will be given to start-up childcare 
programs and existing programs that demonstrate increased capacity through the loan.

Match: Yes, there is a match requirement. Applicants are expected to contribute 50% or more of the 
costs associated with childcare set-up, improvement, and/or expansion. The match can be provided by 
either the owner/operator or in-kind from a facility sponsor. JEDC reserves the right to adjust the 
match requirements.

Minimum Loan Amount: $2,500.
Maximum Loan Amount: $50,000.

Interest Rate: 4% annual rate of interest. Borrower may be eligible for a 1% rate reduction after 
first 12 months if they have zero late payments and childcare capacity was at least 80% for      
the 12-month period. Reduced rate would remain in effect for the remaining life of the loan unless 
borrower has three late payments in a 12-month period or capacity does not meet 80% during a 
12-month period.

Fees: There is an application fee of 1% of loan but not less than $250. Application fee can be 
incorporated into loan amount. There is a modification fee of ½% of outstanding balance but not 
less than $125 after the annual review for forgiveness is conducted and some level of forgiveness 
is awarded. Modification fee can be incorporated into loan capital owed.

Term: Maximum term of 60 months. Principal and interest payments paid monthly.

Collateral: Each loan will be secured by a UCC (Uniform Commercial Code) filing on all FF&E, 
accessories, and accounts. Additional collateral requirements may be necessary depending on loan 
amount.

Forgiveness: Borrower may be eligible for principal forgiveness annually of up to 20% of the
outstanding principal balance at the time of review. Each loan will be reviewed every 12 months. If the borrower meets the following criteria, the principal forgiveness will be applied to help accelerate the repayment of the loan:
•   No late payments during the 12-month period.
•   Childcare capacity utilization was at least 80% during the 12-month period.
•   Borrower is current on all State licensing and reporting.
•   Borrower demonstrates increased childcare capacity and number of children participating in the 
    program relative to the capacity and number of children participating on loan approval date (loan 
    application date will be considered under some circumstances).
•   Forgiveness cannot exceed $2,000 per filled new childcare spot created, cumulative over the 
    life of the loan.

Review and Approval Process:
1.   Complete loan application and submit to JEDC.
2.   JEDC will review the application within 10 business days.
3.   Applicant responds to any questions or requests for additional information within 5 business 
      days.
4.   JEDC informs applicant of approval, denial, or pending status within 7 business days. Pending 
      status may be due to several reasons, including but not limited to: childcare license is in 
      progress; availability of loan funds; application is not competitive with other
      applicants; submitted plan needs changes to be sustainable; or other.

Please submit email all applications to finance@jedc.org or mail to: 612 W. Willoughby Ave., Ste. A, Juneau AK, 99801 Attn: Brian Holst

 

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File Childcare Loan Application79.09 KB