New Mexico Child Care Facility Loan Fund
New Mexico Early Childhood Education and Care Department (ECECD) / New Mexico Finance Authority (NMFA)
$100K–$2.5M
2% facility loans for NM child care
A low-interest loan fund administered by New Mexico's Early Childhood Education and Care Department in partnership with the New Mexico Finance Authority, designed to expand child care capacity by financing facilities. Loans range from $100,000 to $2,500,000 at a fixed 2% interest rate. Facility loans cover construction (up to 2 years interest-only) and then convert to monthly payments for up to 20 years; operating-capital options include 6-month renewable lines of credit and term loans up to 18 months. Projects must involve the physical improvement, repair, maintenance, expansion, or acquisition of a child care facility. Both family child care homes and centers qualify, along with nonprofits, tribal entities, and employers, provided they are licensed in good standing with ECECD or hold a provisional loan license.
- Funding type
- Loan
- Level
- State
- Amount range
- $100,000 – $2,500,000
- Realistic amount
- Sized to the facility project within the $100K–$2.5M band; borrowers must contribute at leas…
- Deadline
- Cycling — applications accepted in funding rounds. Previous cycle closed November 3, 2025; not accepting applications at verification.
- Status
- between-intakes
- States
- New Mexico
- Payment model
- loan
Who qualifies
- Family child care home or child care center in New Mexico
- Licensed in good standing with ECECD, or holding a provisional loan license
- Project involves physical improvement, repair, maintenance, expansion, or acquisition of a child care facility
- Individual providers, private businesses, nonprofits, tribal entities, and employers are eligible
- Minimum 10% borrower equity contribution
What it covers
Eligible expenses
- Construction and facility expansion
- Physical improvement, repair, and maintenance of a child care facility
- Building acquisition for a new child care facility
- Operating capital (via lines of credit or short-term loans)
Ineligible expenses
- Projects not involving a child care facility
How to apply
-
1
Confirm eligibility and assemble project
Verify ECECD licensing/provisional loan license status and define a qualifying facility project (improvement, expansion, or acquisition) with at least 10% equity available.
~6 hrs
-
2
Submit through the online application platform
Apply via the ECECD/NMFA online application platform during an open funding round with project budget, financials, and facility documentation.
~10 hrs
-
3
Underwriting and loan closing
NMFA underwrites the facility loan; construction-phase loans are interest-only for up to 2 years before converting to amortizing payments for up to 20 years.
~4 hrs
At a fixed 2% rate this is dramatically cheaper than conventional or even most CDFI financing — but the $100K floor and 10% equity requirement mean it suits larger facility projects (a new center or a major build-out), not small equipment buys. Line up your ECECD licensing or provisional loan license before the window opens, since that's a gating requirement.
Deadline & timing
ECECD/NMFA open application windows when funding is available. Check nmececd.org/childcareloan for the next round.
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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.