August 2020 NCFN Update
PRACTICE
Ongoing Support Needed as Small Businesses Seek PPP Loan Forgiveness
In the absence of a congressional deal to extend or revise the program, the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) expired on Saturday, August 8. SBA will now begin accepting bank applications to forgive PPP loans, although there are broad concerns about the complexity of navigating the loan forgiveness process. The Bipartisan Policy Center (BPC) estimates that 39,000 child care providers nationwide received a PPP loan, and several NCFN Members, including all five Executive Committee Members, have supported ECE providers seeking PPP loans. Continuing support throughout the loan forgiveness process is critical to ensure providers can successfully have their small business loans forgiven. Please contact NCFN Co-chairs Angie Garling and Nicole Barcliff if you have specific questions about how to best support ECE providers navigate the PPP loan forgiveness process.
LISC, City of Providence Partner on New Child Care Facility Grant Opportunity
The City of Providence has partnered with the Local Initiatives Support Corporation (LISC) to create a facility improvement grant program for child care providers serving infants through pre-K children. Mayor Jorge O. Elorza provided a total of $600,000 for providers serving high-needs populations. The program offers two types of grants:
Planning grants to provide child care and early learning facilities with resources to develop a comprehensive indoor and/or outdoor facility plan.
Capital grants for renovations to address issues related to licensing compliance, health and safety, physical space barriers to quality improvement, and/or expansion of quality programming.
LISC has also partnered with the Rhode Island Governor’s Office to administer a $5,000,000 Child Care Provider Relief Fund to provide critical resources necessary to help sustain the State’s essential child care infrastructure.
Contact LISC Director of Child Care and Early Learning Cindy Larson (clarson@lisc.org) for more information on either grant program.
POLICY UPDATE
Senate Republicans Release Stimulus Proposal with $15 Billion for Child Care
On July 27 Senate Republicans released the HEALS Act, a roughly $1 trillion proposal for the next phase of COVID-19 relief and a counterproposal to the $3 trillion HEROES Act passed by House Democrats in May. Senate Republicans proposed $15 billion for child care in the HEALS Act, which is more than double the $7 billion proposed by House Democrats in the HEROES Act and significantly more than the $3.5 billion included in the CARES Act in March.
The HEALS Act specifically proposes:
$5 billion for the Child Care Development Block Grant (CCDBG), to be distributed to states in the same manner as CARES Act funding
$10 billion through a new “Back to Work Child Care Grants” program, which would provide grants to qualified child care providers for a transition period of 9 months.However, this provision would require states to revisit their health and safety protections and require providers to return funds if they cannot stay open for at least a year.
Congress and the White House have not yet reached a deal on a final stimulus package, and the outlook for negotiations over the coming days and weeks is unclear. As the need for significant federal investment grows, NCFN strongly urges Congress to enact the necessary funding to fully support our nation’s child care system.
House Passes Child Care Bills with Critical Infrastructure Grants Provision
Last month the House passed the Moving Forward Act (H.R. 2), a bold proposal to invest $1.5 trillion in our nation’s infrastructure. Notably, the Moving Forward Act included Representative Katherine Clark’s (D-MA) Child Care is Infrastructure Act, which would create child care infrastructure grants with dedicated technical assistance resources. At the end of July the House also passed the Child Care for Economic Recovery Act, which included the infrastructure grants provision alongside several tax mechanisms and mandatory funding streams to support the sector, as well as the Child Care is Essential Act, which would invest $50 billion in a child care stabilization fund.
The child care infrastructure grant provision has now passed the House twice. It also received bipartisan support with 20 Republicans voting in favor of the Child Care for Economic Recovery Act. 18 Republicans also voted for the Child Care is Essential Act.
This is a fantastic display of support for the child care sector that recognizes the importance of high-quality child care facilities and the need for dedicated technical assistance resources. NCFN is eager to continue advancing this provision as Congress considers an infrastructure package or other year-end legislation.
Biden Caregiving Proposal Emphasizes Child Care
Last month former Vice President Joe Biden released a $775 billion proposal to invest in caregiving programs that specifically calls out investments in child care facilities. While the details are still limited, the proposal does include:
Creating a new child care construction tax credit to encourage businesses to build child care facilities at places of work. Employers will receive 50% of the first $1 million of construction costs per facility.
Making direct investments in building new child care facilities and upgrading existing facilities with a specific focus on accessibility for people with disabilities and addressing environmental contaminants and safety hazards.
Ensuring all child care infrastructure investments are healthy, energy efficient, climate resilient, and developmentally appropriate facilities built with high labor standards.
RESOURCES
Who Will Mind the Children? The Impact of COVID-19 on the Childcare Market, Federal Reserve System (August 6, 2020)
Last week the Federal Reserve System hosted a webinar to discuss the importance of strengthening the child care sector, both in light of short-term economic threats from the pandemic as well as the need to develop a long-term sustainable business model for childcare operators. NCFN Executive Committee Member Bevin Parker-Cerkez was a panelist.
Child Care & Coronavirus: Providers Speak Out, Low Income Investment Fund
The Low Income Investment Fund (LIIF) has complied a series of short video stories from child care providers across the country. These providers, who represent both centers and family child care homes, share how the pandemic has affected their business model and their ability to educate the future generation. Their stories speak to the importance of grants and technical assistance as the child care sector faces unprecedented harm.
Child Care, Essential to Economic Recovery, Received Just $2.3 Billion in PPP Funds, Bipartisan Policy Center (July 13, 2020)
According to the Small Business Administration’s July 6 data, the child care sector’s share of loans through the Paycheck Protection Program “represents less than 5% of the total $521.4 billion in lending through the program, a small amount for such an essential industry.” – Linda Smith and Manami Suenaga
COVID-19 Resources and Information, Administration for Child and Families, Office of Child Care
The Office of Child Care has developed a webpage with comprehensive COVID-19 information for each state and territory, including information on child care financial assistance available in states.
Reopening Childcare: Helpful Hints for Meeting CDC Guidelines, studioMLA Architects
studioMLA has developed a guide to support child care providers navigate new CDC guidelines as they reopen facilities. Strategies include implementing social distancing strategies, parent drop-off and pick-up, screening children upon arrival, personal protection equipment, cleaning and disinfecting, handwashing, food preparation and meal service, and HVAC systems.