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There are more financial support opportunities through the Minnesota Department of Human Services (DHS) than ever available to Minnesota child care providers. This update provides information on how child care providers can apply for two new Child Care Stabilization Grant Program opportunities from DHS.
Minnesota child care providers can apply for new One-Time Supplemental Stabilization Grants in their January 2022 Child Care Stabilization Base Grant application starting January 18, 2022. The Minnesota Governor’s Office and DHS have prioritized $20 million from the COVID-19 Flexible Response Account for Minnesota’s child care providers. These funds, called the One-Time Supplemental Stabilization Grants, are part of Minnesota’s share of the American Rescue Plan Act State Fiscal Recovery Funds. Child care providers can apply for both the Base Grant and Supplemental Grant, or just one of the two grants in their January Base Grant application. All $20 million of the One-Time Supplemental Stabilization Grant funds will be awarded in January 2022 on a non-competitive basis to eligible child care providers who apply. Exact grant amounts will depend on the level of child care provider demand, determined through the number of applications received from eligible child care providers, for these one-time grants, however, approximate grant amounts are as follows:
- Licensed family child care: $1,200
- Licensed child care centers:
- Capacity of less than 75 children: $5,500
- Capacity of 75 children or more: $8,500
- Certified child care centers: $3,000
- Legal non-licensed providers are not eligible for this grant
The Child Care Stabilization Base Grant’s requirement to use 70% of funds to increase compensation for staff regularly caring for children does not apply to One-Time Supplemental Stabilization Grants. Please visit the Child Care Stabilization Grant Program landing page for more information on Supplemental Grants.
This grant opportunity was established by the Minnesota Legislature using federal Child Care Stabilization Funds and is designed to help child care providers who are experiencing extreme financial hardship. Approximately $70 million in Financial Hardship Grants will be available to Minnesota child care providers who, based on meeting qualifying criteria, demonstrate extreme financial hardship.
With input from Minnesota’s child care providers, DHS has finalized the eligibility criteria for its Financial Hardship Grant Program. Due to differences in how licensed family child care, licensed child care center and certified child care center providers operate, there is different eligibility criteria for each provider type. Legal non-licensed child care providers are not eligible for Financial Hardship Grants.
DHS will accept applications for Financial Hardship Grants from Jan. 26, 2022, to 4 p.m. Feb. 9, 2022. Additional information and online resources are available on the Financial Hardship Grants webpage and Financial Hardship Grants Frequently Asked Questions (FAQs) webpage.
The table below shows Financial Hardship Grant eligibility criteria for each type of Minnesota child care provider. Each provider type has three eligibility criteria, and providers only need to meet one of three to be eligible for a Financial Hardship Grant.
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Criteria 1
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Criteria 2
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Criteria 3
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Licensed Family Child Care
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COVID-related closure where a provider receives less than 75% of their total monthly income, including parent fees and, if applicable, reimbursements from the Child Care Assistance and/or Early Learning Scholarship programs.
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Two or more months behind on rent or mortgage payments.
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Operating loss over the previous consecutive three months equal to 25% or more of a provider’s gross income.
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Licensed Child Care Center
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Insufficient monthly gross income to cover two payroll periods (four weeks).
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Two or more months behind on rent or mortgage payments.
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Operating loss over the previous consecutive three months equal to 33% or more of a provider’s gross income.
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Certified Child Care Center
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Insufficient monthly gross income or operating funds to cover two payroll periods (four weeks).
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Public school-based program with a Fund Balance equal to or less than $0.
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Operating loss over the previous consecutive three months equal to 33% or more of a provider’s gross income.
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Non-public school based programs with Days Cash on Hand less than 10 days.
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Eligible licensed family child care providers can receive one of two tiers of Financial Hardship Grants per month. The first tier is approximately a $1,500 grant for meeting the COVID-related closure criteria. Licensed family child care providers can receive this grant amount in every Financial Hardship Grant round that they meet Criteria 1 related to a COVID closure and do not qualify for the second tier grant.
The second tier is approximately a $4,500 grant for meeting the Criteria 2 and/or 3. Licensed family child care providers can only receive this grant amount once every three months, if funding is still available.
Eligible certified child care centers can apply for a grant of approximately $14,500. Certified child care centers can only receive this grant once every three months, if funding is still available.
Eligible licensed child care centers can apply for tiered grant amounts between approximately $8,000 and $70,000 based on the program’s licensed child capacity and licensed operating hours. Details on grant tiers for licensed child care centers will be released soon. Licensed child care centers can only receive this grant once every three months, if funding is still available.
How to apply for a Financial Hardship Grant
Minnesota child care providers who are interested in applying for Financial Hardship Grants must first fill out the Financial Hardship Application Request Form posted on DHS’ Financial Hardship Grant webpage beginning Jan. 26, 2022. This request form determines whether child care providers meet initial eligibility criteria. If providers meet the initial eligibility criteria, they will be sent an email with a link to their personalized Financial Hardship Grant application within an hour of submitting their request form. Please see the Financial Hardship Grant webpage for more details on the application process.
Unlike Base Grant applications, a personalized link to a Financial Hardship Grant application will not be sent to all Minnesota child care providers. Providers can apply for a Base Grant, One-Time Supplemental Stabilization Grant and a Financial Hardship Grant, but are asked to review each grant program’s information carefully to ensure they understand the different purposes and requirements of each grant. Please visit the Base Grant and Base Grant Frequently Asked Questions pages for information on Base Grants. Please visit the Child Care Stabilization Grants Program page for information on One-Time Supplemental Stabilization Grants.
- Si necesita ayuda para comprender esta carta, comuníquese con Rocio Sosa, rsosa@thinksmall.org, 651-641-6660
- Hadaad ubaahantahay caawimaad fahanka warqadan, fadlan la xiriir Abdulkadir Warsame, awarsame@thinksmall.org, 651-641-6673
- Yog tias koj xav tau kev pab nkag siab tsab ntawv no, thov hu rau Julie Yang at JYang@thinksmall.org, 651-366-6792
DHS will send child care providers additional updates and information about these new grant opportunities in the coming weeks. In the meantime, these are important dates to keep in mind:
- Week of Jan. 10, 2022: Financial Hardship Grant webinars will be offered with recordings posted on the Child Care Stabilization Grants Program page and Financial Hardship Grant page
- 18-Jan. 25, 2022: January Child Care Stabilization Base Grant and One-Time Supplemental Stabilization Grant application period
- 26-Feb. 9, 2022: January Financial Hardship Grant application period.
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