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Your Guide to Daycare Grants

Daycare grants are a great source of additional funding to improve your childcare program. Learn more about childcare grants and how to find and apply for financial assistance opportunities.
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For many childcare businesses and preschools struggling financially, daycare grants can be welcome sources of supplemental funding. While the application process for grants can be time-consuming, the financial cushion from extra funding makes it well worth the effort. With patience and persistence (and a bit of paperwork), you can access funding from federal, state, local, and corporate sources to help bolster your center’s finances.

This article will cover how to find and apply for grants for your childcare center.

What’s included:

  • Are loans or grants better for your childcare business?
  • How to find daycare grants
  • Tips for applying for a daycare grant
  • How to find state-specific daycare grants
  • FAQs about daycare grants
Download now

Grant Writing Guide for Childcare Programs

Use this free guide to write successful grant proposals for your childcare program.

Are loans or grants better for your childcare business?

When deciding between applying for a loan or a grant for your childcare business, there are several critical distinctions and factors to consider. In the simplest terms, loans require repayment and grants don’t. Both sources of funding can provide valuable financial relief for your business, whether you’re suffering a financial loss, expanding your business, or trying to keep the lights on.

Loans, while readily available, require repayment with interest, which can strain your budget over time. They are, however, more predictable in terms of the amount you can receive and when you can access the funds.

Grants, on the other hand, do not require repayment, making them highly attractive to business owners looking to minimize financial risk and liability. However, grants can be more competitive and may come with specific conditions on who can receive funding and how the funds are used, which could potentially limit flexibility in allocating resources. Additionally, finding a grant that matches your specific project or purpose may take time and effort and some grants are only available for a certain period, which means it can take longer to receive funding than it would with a loan.

Both options offer significant benefits, but it's essential to weigh these against your business's immediate needs, future growth plans, and capacity to meet repayment or usage obligations.

How to find daycare grants

Securing daycare funding opportunities is a critical step for many childcare providers, and knowing where to look for support can significantly streamline the process.T o help you navigate the landscape of available funding, we've compiled a list of key federal and state resources, as well as general grant databases, where you can begin your search for grants tailored to your childcare program's needs.

Federal resources

State and local resources

  • Child Care Aware® of America: This organization helps families find child care and provides information on local Child Care Resource and Referral (CCR&R) agencies. Your local CCR&R agency can be a vital resource for finding grants and funding opportunities in your community. They also offer a "State by State Resource Map."
  • When searching for state-specific grants, always check your state's Department of Education, Department of Social Services, or equivalent agencies.
  • Talk to other providers in your local area to find out if they know any charitable foundations, government bodies, or other grant sources you can contact.

General grant databases and portals

  • GrantWatch: A comprehensive database of grants for nonprofits, businesses, and individuals, including categories relevant to community services and education, which may include child care. It allows searching by recipient type, category, and funding source (federal, state, local, corporate, foundation).
  • The Grant Portal: Another large online catalog of available grants, including those for children and child care. You can search by keywords, interest, location, or eligibility. Note that full access to grant details and application links typically requires a subscription.

Other resources

Tips for applying for a daycare grant

Applying for a daycare grant can be a bit more complex than applying for a loan. More guidelines often need to be met to receive additional funding. 

When applying for a childcare grant, keep these tips in mind:

  • Do your research
  • Speak to your audience
  • Stick to the point
  • Follow guidelines
  • Reapply

Do your research

Beyond merely identifying potential daycare grants, a successful application hinges on comprehensive research into the grantor themselves. This involves delving deep into the funding organization's mission, vision, and past funding priorities to understand their core values and what types of projects they genuinely aim to support.

It's crucial to discern the specific goals of the grant, the exact services or outcomes they wish to fund, and the detailed eligibility requirements—ranging from geographic location and organizational status (e.g., non-profit, for-profit) to the specific population your program serves. Thoroughly understanding these nuances, including any reporting or evaluation expectations, ensures your proposal aligns perfectly with the grantor's objectives, significantly increasing your chances of securing the much-needed funding.

Speak to your audience

Be mindful that everyone you send a grant proposal to might not know the ins and outs of a daycare program. Always speak to your audience. Don’t use niche terms or acronyms. Ensure that they can understand your proposal and relate to the impact of your program.

Stick to the point

Grant funders don’t want to spend unnecessary time reading your proposal in an attempt to figure out your reason for applying. Be concise. Describe your program’s mission, goals, and reasons for funding in a short, detailed manner.

Follow guidelines

Your daycare grant application should stand out within the guidelines that are set by the funder. Make sure you’re in the right geographic area. Double-check that your business has the proper registrations and licensing. Confirm any funding inclusions. As for the most important guideline, make sure you stick to the dates and deadlines set for the proposal and additional paperwork.

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Reapply

When applying for grants, don’t be discouraged if you get denied. Your next step is to try again. Find out what your application is missing and figure out how you can improve it. This will set you up to create a better proposal each time you apply.

How to find state-specific daycare grants

Each state has a lead childcare agency responsible for subsidizing childcare programs. These agencies also provide information on available funds and how to apply. 

Locate the lead agency in your state or check out one of the state-specific childcare grant guides below: 


There are also many local Child Care Resource and Referral (CCR&R) agencies that offer information about childcare resources in the community as well as financial assistance, funding opportunities, and other business support to childcare providers. Visit the CCR&R search page to find the agency that serves your local area.

Local Head Start programs often collaborate with childcare centers to provide services and also offer various grants and funding opportunities. Contact the Head Start Early Childhood Learning and Knowledge Center for more information.

FAQs about daycare grants

What exactly are daycare grants?

Daycare grants are sums of money awarded to childcare providers and preschools by federal, state, local, or private organizations. Unlike loans, grants do not need to be repaid, making them a highly attractive source of funding for starting, expanding, or improving childcare services.

How do daycare grants differ from loans?

The fundamental difference is repayment. Grants are financial gifts that do not accrue interest and are not expected to be paid back, provided the recipient adheres to the grant's terms and conditions. Loans, on the other hand, must be repaid, typically with interest, over a specified period.

Who is eligible for daycare grants?

Eligibility varies significantly depending on the grant provider. Common criteria include being a licensed childcare facility, serving a specific demographic (e.g., low-income families, children with special needs), operating in a particular geographic area, or being a non-profit organization. Some grants may also have requirements related to quality ratings, program accreditation, or specific services offered. Always thoroughly review the grantor's guidelines.

Where can I find daycare grant opportunities?

Grant opportunities can be found through various channels:

  • Federal government websites: Such as Grants.gov and the Administration for Children and Families (ACF) websites.
  • State and local agencies: Your state's Department of Education or Department of Social Services, as well as county-level offices, often have specific childcare funding programs.
  • Child Care Resource and Referral (CCR&R) agencies: These local organizations are excellent resources for finding funding opportunities in your area.
  • Private foundations and corporations: Many private entities offer grants aligned with their philanthropic missions.
  • Grant databases: Online platforms like GrantWatch and The Grant Portal aggregate grant listings from various sources.

What kind of information and documents do I need to prepare for a grant application?

While requirements vary, common documentation includes your childcare license, financial statements (e.g., budget, tax returns), organizational mission statement, detailed program descriptions, staff qualifications, demographic information about the children you serve, and measurable outcomes you expect to achieve with the grant funds. A clear and compelling grant proposal outlining your need and proposed use of funds is essential.

Download a free grant proposal writing guide for childcare programs!

How long does the grant application and approval process typically take?

The timeline for grant applications and approval can vary widely. Some smaller local grants might have a quicker turnaround (a few weeks to a few months), while larger federal or foundation grants can take anywhere from 30 days to 18 months from submission to notification and funding distribution. It's crucial to check the specific funder's guidelines for their projected timeline.

What should I do if my grant application is denied?

Don't get discouraged. Grant funding is highly competitive. If denied, try to:

  • Request feedback: If possible, ask the grantor for feedback on your application. This can provide valuable insights for future submissions.
  • Review and refine: Use any feedback to identify weaknesses in your proposal and improve it for the next opportunity.
  • Reapply: Many grantors welcome reapplications, especially if you've addressed previous shortcomings.
  • Seek new opportunities: Continue researching and applying for other grants that align with your program's needs. Persistence and continuous improvement are key.

If at first you don’t succeed, try again

Childcare grants are an excellent source of funding for daycare programs. Unlike loans, this capital doesn’t require repayment; however, there could be stricter terms for which it can be used. With both federal and state options for government grants for child care, there are many funding opportunities. Just remember to do your research, follow the guidelines, and be persistent.


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