Daycare Start Up

[vlkela]

How did you get the funds to start up your daycare. Not really looking for in home options. I would love to find a grant to start a daycare facility in my town that just provided care for "early childcare" birth-3. We have one licensed facility and few in home options in a town of 2700 that has several large employers that bring in lots of out of town employees.
I just don't have funds to buy an area and start up and be licensed with out grants or loans...

Any ideas?

[Michael]

Welcome to the forum.

[missy]

Grants for startups are pretty rare. Develop a business plan and get a small business loan. The SBA can help you through the entire process up to $50k. Grants come later, once you are already in business.

If you are starting small you could get a home equity loan, this worked for me (although I got an SBA loan later too). You can get an awesome deal on some loans.

Good luck! It's an exciting venture:-)

[Sugar Magnolia]

We got $100k........by refinancing our home during the real estate boom of 2005. Extremely risky move. I don't recommend this, as you may very well lose everything.
I agree with Missy. Grants are rare. Loans are a better option, especially if you want to purchase the real estate for a center. The terms for sale of commercial real estate can be super tricky, so be careful. We got a loan from Fifth Third Bank, they had good rates and terms. I've also heard community banks are good sources for funding.

[itlw8]

You will also need start up money of your own. either you refinance you home to get the money or you have it in savings or borrow from a relative. SBA will not loan you money if you have no money.

[itlw8]

I see you are in Missouri a common way is to start in home. If you can separate from the family space you can start with a group license for 20. It is unlikely you will do 20 infant toddlers though because the of cost for staff 1-4

Most infant programs are feeders for the preschool program. The need for infant care is a given but is it at a price they will have to pay for center care.