Meet one of the following definitions:
To be eligible for funding, all programs must be in operation and serving children for at least 6 months prior to the first day of the application period and during the three-month funding period (temporary closures during this time are allowed, see the application timeline table below for funding period dates). All programs also need to be licensed or certified and in good standing throughout the funding period with the Minnesota Department of Human Services (under Minnesota Rules, Chapters 9502, 9503, 245H or 119B) or their tribe. “In Good standing” means programs cannot be:
- The subject of a current or past finding of fraud
- Prohibited from receiving public funds under Minnesota Statutes, Section 245.095
- Under revocation or under temporary immediate suspension.
Providers who meet the initial eligibility criteria above are eligible to apply for a Financial Hardship Grant and must meet at least one of three eligibility criteria related to financial hardship for their provider type (licensed family child care, licensed child care centers or certified child care centers). The financial hardship eligibility criteria for each provider type are listed below:
|
Criteria 1 |
Criteria 2 |
Criteria 3 |
| Licensed Family Child Care |
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. |
Two or more months behind on rent or mortgage payments. |
Operating loss over the previous consecutive three months equal to 25% or more of a provider’s gross income. |
| Licensed Child Care Centers |
Insufficient monthly gross income to cover two payroll periods (four weeks). |
Two or more months behind on business rent or mortgage payments. |
Operating loss over the previous consecutive three months equal to 33% or more of a provider’s gross income. |
| Certified Child Care Centers |
Insufficient monthly gross income or operating funds to cover two payroll periods (four weeks). |
Public school-based program with a Fund Balance equal to or less than $0.
Non-public school based programs with Days Cash on Hand less than 10 days.
|
Operating loss over the previous consecutive three months equal to 33% or more of a provider’s gross income. |
Gross income = Income that your child care business receives. This includes parent fees, potentially Child Care Assistance Program and Early Learning Scholarship payments, loans, grant funds, and other sources of income.
Operating loss = When a child care provider’s operating expenses exceed gross income.
Days cash on hand = The number of business days that a business could continue to operate if its income stopped or could not be collected. Calculation: unrestricted cash ÷ [(total expenses – depreciation – in-kind expenses) ÷365]
Please refer to the Financial Hardship Grant Frequently Asked Questions (FAQ) webpage for more details.
Financial Hardship Grant award amounts
Financial Hardship Grant award amounts are intended to stabilize programs facing extreme hardship over a period of up to three months. Grant award amounts will vary depending on provider type (i.e. licensed family child care, licensed child care centers or certified child care centers). Grant amounts have been determined based on the average operating expenses of providers. For example, the average monthly operating expense of the largest licensed child care centers is over $110,000 while the average operating expense for the smallest licensed child care centers is less than $20,000.
