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Napa County Childcare Center Forgivable Loan

  1. Information about the Program:

    Pricing Information/Structure: For every $250,000 of the forgivable loan amount received, a minimum of 5 childcare spots must be created (which would not exist but for this program) or preserved (which would be eliminated but for this program) and must continue through the life of the loan. The loan does not have to be in increments of $250,000. However, the program will round up to the nearest $250,000 for the purposes of the program requirements. 

    Loan Term: If the loan is under $1 million dollars, then an agreed upon number of childcare spots must be maintained for at least 5 years.  If the loan amount is equal to or more than $1 million dollars, then an agreed upon number of childcare spots must be maintained for at least 10 years. 

    For new property purchases, the county’s loan amount cannot exceed 50% of the purchase price. This means that an applicant seeking to purchase a new property must finance at least 50% of the property using funds outside of this program. 

    Applications:

    Program funding is limited, so some qualified and eligible applicants may not receive funding for their proposed projects. Funding will be determined by the quality of the applicants and the overall needs of the County.

    Overview

    Napa County’s goal is to use American Rescue Plan Act funding to create or preserve childcare spots specifically for both infant children (0-24 months) and low-income families by developing a forgivable loan program for one-time childcare facility costs. These one-time costs can include acquiring a facility, renovating the facility, licensing fees and other one-time expenses. Governmental, nonprofit, and private for-profit childcare providers are eligible to receive the funding. At total of $3.8 million dollars is available for this program. 

    Applicant Thresholds:

    An applicant seeking funding must meet the following qualifications: 

    1. All childcare providers must be licensed by the California Department of Social Services at the start of childcare services being provided. 
    2. A childcare provider must demonstrate it has the qualifications and experience, to provide licensed childcare services. New childcare providers must have a license by the time they begin providing childcare services.
    3. The facility improved with loan funds must be providing childcare services within Napa County.
    4. Providers must have sound staffing and financial health, by the time they provide childcare services. Sound staffing means staffing that is compliant with the State of California childcare licensing requirements.  

    An applicant seeking funding must disclose the following in its application:

    1. Whether it has been an adverse party in litigation involving any public entity within the past ten (10) years.
    2. All judgements and outstanding claims against it, or any affiliated entities including, but not limited to, defaults on financial obligations, or operating without a license. 
    3. Whether it has filed bankruptcy at any time within the past ten (10) years. 

    The County reserves the right to deny funding assistance to any applicant based on the information provided by these documents. 

    Eligible Projects

    Eligible projects must be one-time expenses such as: 

    1. Cost to acquire a facility, such as down payment costs
    2. Costs to build a facility 
    3. Costs to renovate a facility 
    4. Licensing, or permitting fees
    5. Furniture and other facility costs
    6. Real Estate Broker fees 

    Ineligible Projects:

    All reoccurring childcare expenses are ineligible. These ineligible expenses include all operation expenses, such as staffing costs. 

    Eligible Applicants:

    Government, nonprofit and private for-profit childcare providers are all eligible for this program. 

    Applicants are required to submit complete financial statements including Balance Sheets, Income Statements and Statement of Cash Flows with notes for the last three years. Applicants should also produce evidence of having an active childcare license from the State of California. 

    Government applicants are not required to submit this information since government financial information is public. 

    Priority Projects

    Depending on the project, applicants will be encouraged to preserve or expand the number of low-income or infant childcare spots. However, the program does not currently require that a provider preserve or create new low income and/or infant childcare spots, however, applications for infant and low-income childcare spots will receive priority.

    In exchange for a funding amount under $1 million, the requirement is to preserve or expand the agreed upon childcare spots for 5 years. In exchange for funding, equal to or over $1 million, the requirement is to preserve or expand the agreed upon childcare spots for 10 years. 

    Applications will be reviewed with respect to these identified County needs:

    1. Projects that provide the highest amounts of low-income and/or infant childcare spots,
    2. Childcare providers who propose adding spots north of the city limits of the City of Napa. 
    3. Childcare providers which have a history of providing quality licensed childcare in Napa County. Providers are not required to have a history of being licensed but must have a valid childcare license by the time they provider childcare services.
    4. Childcare providers which provide services outside of traditional operating hours of Monday through Friday 8:00am to 6:00pm. 
    5. Childcare providers which do not have adverse litigation or judgements or outstanding claims against it.  

    Loan Information:

    Loan Size: The loan amount shall not exceed the actual cost of the eligible expense. For example: if the forgivable loan is being used for a $200,000 renovation to a childcare facility, the loan must not exceed $200,000. In this case the loan may be for less than $200,000. 

    The loan does not have to be in increments of $250,000. However, the program will round up to the nearest $250,000 for the purposes of the program requirements. 

    Interest Rate: The interest rate is 3% simple, forgiven at the conclusion of successful completion of the loan requirements.

    Loan Term: If the loan is under $1 million dollars, then the requirement is 5 years of an agreed upon number of childcare spots.  If the loan amount is equal to or more than $1 million dollars, the requirement is 10 years of an agreed upon number of childcare spots. 

    For new property purchases, the county’s loan amount cannot exceed 50% of the purchase amount. This means that an applicant seeking to purchase a new property must finance at least 50% of the property using funds outside of this program. 

    Loan repayment: The loan is forgiven if the terms of the agreement are met. If the terms of the agreement are not met, then the balance will be due at the expiration of the term of the loan in addition to 3% simple interest rate. 

    Any capital acquisition (purchase of a new facility) will require a deed on the property for the life of the loan. 

    Loan Location: the loan must be associated with a childcare facility providing childcare services in Napa County.

    Reporting Requirements

    To comply with American Rescue Plan Act requirements, the county will regularly monitor forgivable loan recipients.

    Accessibility:

    Ensure that any reports, and any deliverable to the County be delivered in a manner to ensure non-discrimination and equal access to County services and digital properties such as websites, documents, and applications by persons with a disability under the Americans with Disabilities Act (ADA) and under Section 508 of the Rehabilitation Act of 1973.  Successful applicants shall ensure that any deliverable, including but not limited to, reports, documents, videos, multimedia productions, live broadcasts and any and all other web content and information communications technology are fully accessible and in compliance with federal accessibility standards and laws and with the COUNTY’s Web Content Accessibility Standards.  Examples of accessibility measures include, but are not limited to, providing closed captions, video descriptions, and 508 compliant players. When possible, and as coordinated with COUNTY, all reports shall be provided electronically.  

  2. Applicant Information
  3. (of person to receive notices and who is authorized to make decisions or represent the company with respect to this RFP).

    Please include first and last name

  4. (of person to receive notices and who is authorized to make decisions or represent the company with respect to this RFP).

  5. (of person to receive notices and who is authorized to make decisions or represent the company with respect to this RFP).


  6. Please enter the name (as it appears on the license) and indicate the type.

    Family Childcare Home Name

    OR

    Center Based Childcare Name

    OR

    New Childcare Business Name

  7. (as it appears on your tax documents, Form W-9, etc)

  8. (Note: Must be in Napa County)

  9. For childcare centers, please refer to your license issued by the State of California, Department of Social Services Community Care License and answer the following questions:
  10. Please specify what kind of license you have:
  11. Organization Type*
  12. Only answer if a for-profit business. Please separate each name with a comma (i.e. Jane Doe, John Smith.)

  13. (example: Jane Doe, CEO; John Smith, Board President)

  14. Project Information
  15. Facility Ownership Type*
  16. Project Type: what is the nature of your project?*
  17. Note: 500 Character Maximum

  18. Requested Loan Amount

    (for each increment of $250,000, a minimum of 5 childcare spots must be created or preserved. The loan does not have to be in increments of $250,000 but the childcare spot requirement will round up to the nearest $250,000. For example, if $400,000 is being requested, the minimum number of spots will be 10.)

  19. graph of loan amount and minimum number of childcare spots created or preserved for $1 - $1,250,000
  20. Number of New or Preserved Childcare Spots Proposed
  21. * For the purposes of this American Rescue Plan Act program, low income means  (i) income at or below 185 percent of the Federal Poverty Guidelines (FPG) for the size of its household based on the most recently published poverty guidelines by the Department of Health and Human Services (HHS) or (ii) income at or below 40 percent of the Area Median Income (AMI) for its county and size of household based on the most recently published data by the Department of Housing and Urban Development (HUD).

  22. Include no more than a 1000-character narrative description of what the project is, and how it is connected to the proposed childcare spots.

  23. (if the proposed project is not construction related, leave blank)

  24.  (if the proposed project is not construction related, leave blank)

  25. Attachments

    Once the application is submitted, you will receive instructions for how to submit supporting document as attachments. This can include construction bid documents. These documents should also describe specifically how this loan is related to the proposed number of new or preserve childcare spots. 

    Required documents may include:

    • If leasing or renting the property, include written approval from the owner.
    • If leasing or renting the property, include written confirmation from the owner confirming the intent to continue the lease or rental agreement through the term of the program.

    Examples include:

    • Site evaluation
    • Floor plans
    • Before photos of the facility
    • Project deign documents including architectural renderings
    • Proposed construction schedule or timeline 
  26. Attachments applicants must provide:

    For Non-Profit Organizations:

    • Proof of 501(C)3 status
    • Annual audit or current unaudited financial
    • Operating budget with current revenue and expenses 

    For Private For-Profit Organizations

    • Annual Audit or current unaudited financials, if available or your organization’s most recent tax returns 
    • Lease, rental agreement, or deed of property in question

    For family childcare providers and prospective providers looking to purchase a home:

    • Most recent tax returns 

    For Government Organization

    • Proof of contracts through the State of California to operate childcare
  27. General Assurances and Attestations*
    • This project preserves/creates new childcare spots
    • This project is necessary to preserve or create the new childcare spots listed in the application.
    • Applicant certifies they will apply and obtain all necessary approvals and permits for the proposed project, where applicable.
    • Applicant certifies they will comply with all state and federal statues, and regulations including but not limited to ADA requirements for indoor and outdoor space.
    • Applicant certifies that they will comply with regular program reporting requirements by Napa County or an agent of Napa County.
  28. Leave This Blank:

  29. This field is not part of the form submission.