Grants can be an essential resource for your childcare business, offering the funding needed to enhance your facilities, boost professional development, and ensure the highest quality of care for children. However, the process of finding and applying for grants can be overwhelming and time-consuming. 

In this guide, we explore various grants available to childcare providers in Tennessee, how to prepare for them, and where to find these valuable resources.

What is a grant?

A grant is financial support provided by entities such as government agencies, private foundations, or corporations to fund particular projects or initiatives. Unlike loans, grants don't require repayment, making them an attractive choice for childcare providers seeking to enhance their services without taking on additional debt. Grants can address various needs, including facility improvements, operational expenses, professional development, and special programs.

The U.S. government’s second and final funding package for fiscal year 2024 includes a $1 billion increase for programs focused on child care and early childhood education¹. This new funding includes an additional $275 million for the Head Start program and $725 million for the Child Care and Development Block Grant which funds state efforts to provide child care to families and improve the quality of care. 

Childcare grants in Tennessee

Tennessee offers a diverse array of resources aimed at supporting childcare providers across the state. Whether you're looking for grants, training programs, or additional support services, Tennessee's comprehensive network caters to your needs.

Grants and resources from government agencies

The Tennessee Department of Human Services (TDHS) is the lead state agency that oversees the distribution of the federal Child Care and Development Fund (CCDF) in Tennessee. This funding can be in the form of certificates, grants, or contracts to provide childcare services to low-income families or improve the quality of care provided.

Tennessee Department of Human Services

The Tennessee Department of Human Services offers various initiatives to support childcare providers and families:

• Child Care WAGE$ Tennessee: This program offers annual salary supplements to childcare providers who meet specific education and employment criteria. By boosting wages, it aims to reduce staff turnover, enhance the quality of care, and ensure that children benefit from consistent and experienced caregivers.

• Child Care Certificate Program: This program offers subsidies to low-income families to help them afford quality childcare. For providers, it means a reliable source of income and the ability to maintain enrollment. 

• Quality Rating Improvement System (QRIS): Tennessee's QRIS is a voluntary program designed to assess, improve, and communicate the level of quality in early care and education settings. Participants can access tools and resources to enhance program quality, as well as receive bonus payments for high scores.

ChildcareTennessee Shared Services

ChildcareTennessee Shared Services provides access to a variety of resources and services, such as bulk purchasing, administrative support, and professional development, aimed at reducing operational costs and improving business efficiency for childcare providers. 

In addition, in partnership with the TDHS, ChildcareTennessee offers access to various grants for equipment, program enhancements and supplies, and coaches and consultants, as well as establishment grants for new childcare programs and expansion grants for existing programs.

Source

Professional development support

Investing in the professional development of childcare staff is essential for maintaining high-quality early education. While TDHS offers various training and professional development resources, we highlight a few programs below:

Tennessee Child Care Resource and Referral (CCR&R)

The CCR&Rs throughout Tennessee offer various resources to childcare providers including consulting on best practices, helping providers navigate regulatory requirements, and offering workshops that focus on child development, safety, and effective teaching methods. 

Tennessee Early Childhood Training Alliance (TECTA)

This organization offers specialized training and scholarships to early childhood educators to enhance their professional development. By alleviating financial barriers, TECTA enables providers to gain additional qualifications, improve their skills, and ultimately deliver higher quality care and education to children.

Grants from private foundations

While government programs can be the largest source of grant funding, private foundations also play a significant role in supporting early education programs.

Community Foundation of Middle Tennessee

The Community Foundation of Middle Tennessee provides discretionary grants to support various community initiatives, in areas such as education, the environment, the arts, health, and social services.

East Tennessee Foundation

The East Tennessee Foundation focuses on supporting educational advancements, health and human services, arts and culture, and community development. Their service areas include 25 counties in East Tennessee, including larger hubs such as Knoxville as well as rural communities, ensuring an inclusive and widespread impact.

HCA Healthcare Foundation

This foundation offers grants to nonprofit organizations focused on health and well-being, including early childhood education. Their funding mainly focuses on Middle Tennessee counties, however they also provide support in communities where HCA Healthcare has a presence.

The PNC Foundation

Through its Grow Up Great initiative, the PNC Foundation supports early childhood education efforts, offering grants to providers for curriculum development, teacher training, and classroom resources in Tennessee and beyond.

Federal grants and funding opportunities

The federal government offers a variety of grants and funding opportunities to support childcare providers across the United States, including Tennessee. These grants are designed to improve access to quality childcare, support the professional development of childcare workers, and enhance the learning environments for children under their care. Some key federal funding sources include:

U.S. Department of Education

The U.S. Department of Education (ED) offers discretionary grants that are awarded using a competitive process, as well as student loans or grants to attend college, and formula grants determined by Congress. Here are some helpful resources to explore:

• ED grants homepage: The ED grants homepage allows you to browse funding opportunities, links to grant applications, and your eligibility status.
• Grants.gov: The Grants.gov website is the central location that provides information on grants across the federal government. You can search for and apply to different funding opportunities, determine your eligibility, and access grant writing tips. 
• Head Start and Early Head Start Programs: Aimed at promoting school readiness for children under five from low-income families, these programs provide grants directly to public and private non-profit and for-profit agencies to provide comprehensive child development services. The Office of Head Start (OHS) posts notices of funding opportunities (NOFOs) that seek applications for grand funds. 

U.S. Department of Agriculture Rural Development

The U.S. Department of Agriculture (USDA) manages various financial assistance programs for rural applications. One example is the Community Facilities Direct Loan and Grant Program that provides funds to be used to purchase, construct and/or improve essential community facilities like childcare centers, purchase equipment, and pay related project expenses in rural areas with no more than 20,000 residents.

Applying for grants

Applying for childcare grants in Tennessee can be a competitive process, as funding is often limited. To increase your chances of receiving a grant, it’s essential to carefully review and follow all application guidelines and requirements. Here are some general steps to take when applying for childcare grants:

• Meet all licensing requirements: Ensure that your program meets all of the licensing requirements in Tennessee. Maintaining licensing compliance shows a commitment to high-quality standards and is often also required for you to be eligible for specific grants and funding opportunities.
• Do your research and determine your eligibility: Research available grants and determine which ones align with your needs and goals. Before applying, check to see that you meet all the necessary criteria. Most (but not all) government grants are aimed at 501(c)(3) nonprofit organizations, so be sure to read the eligibility requirements carefully.
• Gather your documentation: Most grant applications will ask for specific documentation, such as financial statements, demographic information, licenses, and certifications. Be sure to have these prepared in advance. With brightwheel you can quickly and easily access custom reporting to meet your specific needs.
• Write a compelling grant proposal: Read successful grant applications to learn how to structure your approach. Include an executive summary of your project and clearly define the need or problem your childcare services address. Provide a detailed description of your program and list your objectives and expected outcomes. Follow all grant application instructions, have someone else review your proposal before submitting, and submit your application on time. 

Additional tips for success

Here are some additional tips to keep in mind when applying for grants for your childcare center:

• Stay informed: Connect and engage with local and state organizations focused on early childhood education. If possible, join their email lists or follow their social media pages, as these organizations will often share grant and funding information as it becomes available. Also, regularly check the websites of federal agencies to stay informed on available grants or programs. 
• Create a budget: A comprehensive childcare center budget will highlight the financial needs and priorities of your program and give funders a clear understanding of how a grant will be utilized. With a clear picture of your program’s finances, you can also maximize the impact of any funding that is received.
• Plan a fundraiser: Hosting a fundraising event can raise necessary funds for your program. Have a bake sale, organize a silent auction, or host a trivia night. 
• Hire a grant proposal writer: If your budget allows, consider hiring a grant proposal writer. A grant proposal writer can craft a compelling narrative about your program and navigate the complexities of the grant application process for you.

Final thoughts

Securing childcare grants in Tennessee can significantly enhance the quality and sustainability of your childcare business. By understanding the types of grants available and how to effectively prepare for them, you can access the necessary funds to improve your facilities, invest in professional development, and provide better care for the children you serve.

1. “Former Preschool Teacher Patty Murray Delivers $1 Billion More to Help Families Find and Afford Child Care & Pre-K”, United States Senate Committee on Appropriations, 03/21/2024.

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