Blue Earth County Childcare Forgivable Loan Program


 

The Blue Earth County Childcare Forgivable Loan Program is intended to serve as funds to expand or improve the availability of childcare in small cities and townships across Blue Earth County. Visit the Blue Earth County website for additional information.

 


 

Who Can Apply? 

To qualify for the Blue Earth County Childcare Forgivable Loan Program, the project must NOT be located within a city with a population greater than 5,000. The childcare center can be either home-based or center-based, as well as either for-profit or non-profit. The applicant must provide full-time care (40+ hours per week) to at least 5 children. Individual cities may require a higher number of children cared for. 

In addition, no more than 25% of the children served can be directly related to the applicant of the loan.

Eligible Projects

    1. Training and Licensing Costs
    2. Fixed Machinery and Equipment
    3. Building Purchase, Construction and Renovation
    4. Leasehold Improvements
    5. Create Additional Employment
    6. Operational Costs

Loan Parameters

  • Loan Amount: Up to $2,500 for home-based licensed or legally non-licensed. Up to $20,000 for center-based. 
  • Term of Loan: 5 years - Interest-only payments are due semi-annually. 
  • Loan Forgiveness: 20% of the original loan is forgiven annually, as long as the center remains in business AND continues to make interest payments. After 5 years of business operations and interest payments, the loan is forgiven in its entirety. 
  • Interest Rate: Determined annually by the Blue Earth County Board of Commissioners. 

 

Application Timeline and Approval Process

The timeline and approval process for the Blue Earth County Childcare Forgivable Loan Program may vary, but will generally take 3-4 months. 


The timeline and approval process is as follows: 
    1. Meet and discuss the proposed project with the Economic Development Specialist.
    2. Consult with the Regional Center for Entrepreneurial Facilitation (RCEF) at 507-344-7897, or any other qualified, applicable consultant. 
    3. Complete and submit the loan program application and all supporting documents. 
    4. All applications are reviewed and approved by each of the following entities: 
      • Lake Crystal Economic Development Authority (EDA)
      • Lake Crystal City Council
      • Blue Earth County Small Cities Childcare Forgivable Loan Program Review Committee
      • Blue Earth County Board of Commissioners 

 

Download the application here.