The Child Care Planning Council of Yuba & Sutter Counties encourages and promotes quality standards of care. The Council offers child care providers the following networks for more information.
Building Child Care
Building Child Care (BCC), funded by the California Department of Education, is a collaboration of organizations designed to help child care providers access public and private sector financing for child care facilities. The four collaborative partners on this project have combined their experience, resources, and expertise to build a clearinghouse of information and assistance for developing and financing child care facilities.
To access the informational resources and publications, and to ask questions about the process of acquiring, building, renovating, or expanding child care facilities you can visit the web site at: www.buildingchildcare.org
1. Demographic and Business Information
The Yuba-Sutter Economic Development Corporation provides a variety of demographic and business trend information free of charge to businesses. www.ysedc.org
2. Site Location Assistance
The Yuba-Sutter Economic Development Corporation provides direct assistance to businesses that want to identify and locate sites in Sutter County. The Corporation also provides assistance to expanding companies. The Corporation provides liaison assistance with permitting, financing and labor force needs.
3. Small Business Assistance
- Service Corps of Retired Executives, SCORE www.score.org
- Small Business Development Center, SBDC http://commerce.ca.gov/small-business/sbdc-locations.html
The SBDC provides a variety of services to start-up and established businesses. Assistance is offered free or at low cost, tailored to the clients needs.
4. Labor and Workforce Development
a. Employment Development Department, Labor Market Information Division. www.calmis.ca.gov
-Provides assistance to employees with analysis of employment trends, skills/qualifications, wages and salaries.
b. Yuba and Sutter County One Stop Business Centers.
Sutter County- www.1stop2work.com/sutter.htm
Yuba County- www.1stop2work.com/yuba.htm
The One Stop Centers can provide a variety of services such as applicant screening and job matching, job listings and announcements, customized recruitment, provide interview facilities and direct placement.
Federal Funding Sources and Programs
Small Business Administration Loans
A. SBA Micro-Loan Program www.sba.gov/financing/frmicro.html
This program is available to established and start-up businesses that have less than 100 employees an less than $5 million in sales. It provides loans in the range of $1000-$25,000 at a fixed rate. The loans can be used for working capital, inventory, furnishings, real property acquisitions, etc. They cannot be used for debt repayment.
B. Minority Pre-qualification Loan Program and Women's Pre-qualification Loan Program. www.sba.gov/business_finances/prequal/all.html
Enables SBA to pre-qualify loan guarantees for women and minority-owned businesses before approaching lenders. The women's program uses only non-profit intermediaries to assist in loan packaging and securing before applying for guarantees. The minority program allows for-profit intermediaries as well.
C. SBA 7(a) Loan Program www.sba.gov/financing/fr7aloan.html
This program is designed to assist small businesses by providing working capital to meet both short and long-term financing needs. Funds can be used to purchase inventory, supplies, machinery, and equipment; consolidate debt; and pay for construction, conversion, rehabilitation, or acquisition of existing businesses. Private lenders provide the loans. The Small Business Administration (SBA) will guarantee up to 90% of loans up to $155,000, and 85% of loans over $155,000. Loan sizes are $50,000-1,000.00. The lending institution sets the rate, and uses the assets purchased with loan proceeds as collateral. The small business may be required to inject 10-25% into the project.
D. SBA 504 Loan Program www.sba.gov/financing/frcdc504.html
This program is designed to assist small businesses by providing long-term, fixed asset financing. Funds can be used for land acquisition, construction or purchase of existing building, site improvements, renovations, restoration, and purchase of major equipment. Private lenders provide 50% of project cost, SBA provides up to 40%. Project size ranges from $350.000 to 4 million.
E. SBA Low DOC Loan Program www.sba.gov/financing/frlowdoc.html
This program is designed to streamline the lending process for small loans (up to $100,000) provided by the SBA. Loans under this program are designed to assist small businesses by providing working capital to meet both short and long-term financing needs. Funds can be used to purchase inventory, supplies, machinery, and equipment; consolidate debt; and pay for construction, conversion, rehabilitation, or acquisition of existing businesses. Private lenders provide the loan. SBA will guarantee up to 90% or it. The lending institution sets the rate, and uses the assets purchased with loan proceeds as collateral. The small business may be required to inject 10-25% into the project.
F. SBA CAPlines Loan Program www.sba.gov/financing/frcaplines.html
CAPLines is the umbrella program under which the SBA helps small businesses meet their short-term and cyclical working capital needs. A CAPLines loan can be for almost any dollar amount. There are five loan programs for small businesses under the CAPLines umbrella:
These loans may be used for most business purposes. Each line of credit has a maturity of up to five years. Funds can be used as needed throughout the term of the loan to purchase assets, as long as sufficient time is allowed to convert the assets into cash at maturity. The SBA can guaranty up to 80% of loans of $100,000 or less, and up to 75% of loans about $100,000. Holders of at least 20% ownership in the business are generally required to guaranty the loan.
State Funding Sources
California Loan Guarantee Program www.commerce.ca.gov/business/small/financial
The California Loan Guarantee Program enables a small business to obtain a term loan or line of credit when it cannot otherwise qualify for a loan. The Office of Small Business administers the program with the primary objective of creating and retaining jobs, as well as providing a service to small businesses (including women, minority, and disable owned). The program provides a lender with the necessary security, in the form of a guarantee, for the lender to approve a loan or line of credit. The guarantees are issued on behalf of the state by any of eight non-profit corporations throughout California. These offices are called Small Business Financial Development Corporations (FDCs). Some FDCs offer direct loans up to $25,000. This program is not related to any SBA program.
Financing for Child Care Facilities www.hcd.ca.gov/ca/ccffp
Facility financing through direct loans or loan guarantees are now available for licensed child care centers and licensed family day care homes serving more than six children.
Each facility and project must:
Primarily serve children from low-income families; and
Create or preserve child care spaces
Additionally, each project must meet one of the following:
Primarily serve any combination of infant care, after school care, non-traditional hours care, or serve special needs children; or
Replace spaces lost to classroom size reductions; or
Primarily serve children from "Welfare to Work" families; or
You are a current California Department of Education contract.
Sudden and Severe Economic Dislocation Revolving Loan Fund www.ceres.ca.gov/cert/grants/tcssed.html
The SSED loan program is designed to be used in conjunction with private lending and investment sources to complete projects which would not normally qualify for conventional financing. Loan proceeds may be used for land building (excluding construction), machinery and equipment, and working capital. Businesses may borrow form $25,000 to $500,000 and loan terms may go up to 20 years, depending on the use of the loan funds. Lower than market interest rates, flexible repayment terms and subordinated collateral positions provide a unique opportunity to assist loan applicants in structuring projects which will create or retain permanent employment while responding to local and statewide development strategies.
Local Funding Sources
A) Yuba-Sutter Enterprise Zone
The Yuba-Sutter EDC currently manages a joint enterprise zone in both Yuba and Sutter Counties. The Enterprise Zone can provide the following benefits:
Revolving Loan Fund Program (RLF)
This program provides low cost financing to businesses in the region. The range of loans is from $25,000 to $150,000. The RLF funds are designed to fill gaps in financing and are tailored to the capital needs of the individual's business. The eligible use of the funds are:
Yuba Sutter Intermediary Relending Program
This program managed by the Yuba-Sutter Economic Development Corporation provides loans to businesses in the region. Eligible use of the funds are:
Private Funding Sources and Programs
A. Rural Venture Capital Network (RVCN)
The RVCN is a program that covers 15 Northern California counties to work toward expanding business with a variety of investment sources and funding mechanisms. The Tri-County EDC, consisting of Glenn, Tehama and Butte Counties, manages the fund as a type of venture capital program for economic development. The program could have advantages to local start-up and business expansions.
B. California Economic Development Lending Initiative (CEDLI)
CEDLI is a multi-bank community development corporation established in 1995 to make loans to small businesses and community development organizations. CEDLI's mission is to create jobs by providing financing to projects that fall outside of normal bank lending practices.
C. Affordable Buildings for Children's Development (ABCD Fund)
The ABCD Fund enables child care centers in California to meet the costs of facilities development, and assists them with their long-term real estate financing needs. The ABCD Fund is managed by the Low Income Investment Fund and is a component of California's ABCD Program, the comprehensive child care facilities financing system being launched in January 2003.
The ABC Fund offers financial products which together deliver capital to fully meet facilities development needs:
The ABCD Fund also provides technical assistance during each phase of the development process.
For more information on the ABCD Fund, contact:
National Child Care Director
Low Income Investment Fund
(510) 893-3811 ext. 319
or click on the link http://www.lihf.org/family.html