Family Day Care Grant Program Guidelines

The following sections describe the requirements and procedures of the Family Day Care Grant Program.

According to Community Development Block Grant (CDBG) regulations, the applicant may only receive direct microenterprise assistance if the business owner himself/herself is a low- to moderate-income person, or if that person plans to create a job to be filled by a low- to moderate-income person.
The family day care must be located in Newton.
The family day care must be a provider within the Newton Community Service Centers’ Family Day Care System.
The business and owner must be current with all city, state, and federal financial obligations, including taxes.

Grant funds may be used for tangible items (i.e. toys and high chairs) and improvements to the day care space (i.e. radiator covers and outdoor fencing) as required by the state or directly related to raising the quality of the care for the children. Items within the following categories are eligible: baby equipment, napping, outdoor activities, arts and crafts, literacy needs, manipulatives, and pretend play. Reimbursement of the $100 licensing fee is also an eligible expense. Additionally, business-related office supplies and equipment may be considered. Routine maintenance needs such as wipes, cleaners, paper goods, diapers, food are NOT eligible uses of funds. A list of proposed items or improvements with cost estimates must be shown in detail in the application. A contingency of 10% will be factored into the final grant amount. In no case can the grant exceed $2,500.

For start-up family day cares, state licensing must be received within 4 months of the release of the first grant funds.
The grant will be made repayable if the state denies licensing.
The grant will be made repayable if the family day care provider leaves the NCSC Family Day Care System within 1 year from contract execution.

Release of grant funds:

Grant funds will be released to the day care owner on a reimbursement basis for items purchased for the day care or for improvements made to the home. In some instances, NCSC may purchase items on behalf of the day care provider using their accounts and may be reimbursed directly. All items must be approved by NCSC prior to purchase to determine the appropriateness for the day care. All goods or services must be acquired from a bona fide business. Receipts must only contain reimbursable items; improper receipts may be rejected. Once the goods and services are received, a payment request form can be completed and submitted to the NCSC with the receipts attached. NCSC will review the request and forward it to the City. Day care owners are encouraged to lump multiple receipts into each payment request form. Reimbursement has an estimated turnaround time of 2-3 weeks. A check is made out and mailed directly to the owner.

City staff and/or members of the City’s Economic Development Advisory Committee (EDAC) may visit the family day care on one of NCSC’s routine site visits.

Prior to full application submission, it is recommended that the applicant arrange to meet with city staff to determine income eligibility. If the applicant is found eligible and after a full application is received, the EDAC will review and vote on the request. It may take up to 2 weeks for a decision by the committee. Assuming a favorable vote, the City will prepare the grant agreement. A meeting will be called to review and sign the grant agreement. Once all the required signatures have been received, the owner may begin to submit payment request forms. From application submission to the signing of the grant agreement, the time is estimated at 3-5 weeks.