First Children's Finance — Child Care Business Loan Fund
First Children's Finance (FCF)
Up to $25K–$125K
Loans built for child care
First Children's Finance is a Community Development Financial Institution (CDFI) and the only U.S. lender that specializes in financing both family (home-based) and center-based child care businesses. It provides flexible loans — up to $25,000 for family child care and up to $125,000 for centers (with a $50,000 cap for center startups) — alongside hands-on business assistance, to providers who often cannot obtain traditional financing. Interest rates start at 8% and there is no minimum credit score. Funds can be used for facility improvements, learning materials and equipment, working capital and payroll, and land or facility purchase. FCF lends to child care entrepreneurs in Minnesota, Iowa, Michigan, Oregon, Vermont, and on a national basis, with SBA microloan coverage across MN, MI, IA, ND, SD, MO, and WI.
- Funding type
- Loan
- Level
- Private
- Amount range
- Up to $25K–$125K
- Realistic amount
- A family child care provider typically borrows up to $25,000; an established center up to $1…
- Deadline
- Rolling — applications accepted year-round.
- Status
- active
- States
- Minnesota, Iowa, Michigan, Oregon, Vermont, North Dakota, South Dakota, Missouri, Wisconsin, all
- Payment model
- loan
Who qualifies
- Family child care home or center-based child care business
- Located in a served state (MN, IA, MI, OR, VT) or eligible for a national/SBA program (incl. ND, SD, MO, WI)
- Not currently in legal proceedings
- No recent bankruptcy (24+ months post-discharge is acceptable)
- No outstanding tax obligations
- No minimum credit score required
What it covers
Eligible expenses
- Facility improvements (e.g., heating systems, playground equipment)
- Learning materials, furniture, and equipment
- Business operations / working capital (e.g., payroll)
- Land or facility purchase
Ineligible expenses
- Uses unrelated to the child care business
How to apply
-
1
Contact the Lending Support Navigator
Reach out early to FCF's Lending Support Navigator to discuss your project, confirm eligibility for your state/program, and map a timeline.
~2 hrs
-
2
Assemble loan application and documents
Prepare financials, a use-of-funds plan, and supporting documents; pay the application fee ($25 family / $100 center). FCF provides business assistance to strengthen the package.
~8 hrs
-
3
Underwriting and closing
FCF underwrites based on credit history, collateral, and repayment capacity, then closes the loan (1% closing fee plus third-party costs). Expect several weeks from first contact to closing.
~4 hrs
Because FCF has no minimum credit score and pairs every loan with free, customized business coaching, it's a realistic option for providers a bank would decline — but center startups are capped at $50,000, so plan facility purchases accordingly. Start the conversation months before you need the money; closing timelines are measured in weeks, not days.
Deadline & timing
No deadline; the process from first contact to loan closing takes time, so FCF recommends starting conversations early via its Lending Support Navigator.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.