Child Care Facilities Revolving Loan Fund
While the California Department of Education continues to operate the California State Preschool Program, the Early Childhood Development Act of 2020 (Senate Bill (SB) 98, Chapter 24, Statutes of 2020) authorized the transfer of many childcare programs from the California Department of Education to the California Department of Social Services (CDSS) effective July 1, 2021. The content on this page may include programs that have moved to CDSS. For additional assistance you can either visit the CDSS Child Care Transition web page or call 1-833-559-2420 for more information.
The Child Care Facilities Revolving Fund (CCFRF) provides funding to eligible California Department of Education (CDE) child care and development contracting agencies for renovation and repair of existing facilities or the acquisition of relocatable buildings.
Chapter 32, Statutes of 2014 establishes the Child Care Facilities Revolving Fund to provide funding for the renovation, repair, or improvement of an existing building to make the building suitable for licensure for child care and development services, and for the purchase of new relocatable child care facilities for lease to school districts and contracting agencies that provide child care and development services. The CDE’s Early Learning and Care Division (ELCD) administers the CCFRF program in accordance with the California Education Code (EC) Section 8278.3.
The CCFRF includes the State’s lease-purchase program for relocatable child care facilities as well as the California Renovation and Repair Loan (CRRL) program. All funds advanced from the CCFRF must be repaid by the contracting agency over a period no longer than ten years, with no interest. In accordance with EC 8278.3, funding is limited to only existing contracting agencies that provide CDE-subsidized child care program services. These include the following ELCD administered programs: (1) General Child Care and Development; (2) California State Preschool; (3) Migrant Child Care and Development; (4) Child Care and Development Services for Children with Exceptional Needs; and (5) California School Age Families Education.
With the CCFRF General Facilities loan, child care agencies may apply for up to $420,000 for each single, freestanding relocatable building (basic building consisting of three 12 by 40 foot modules) and up to $140,000 maximum for each additional module added to the basic building. Eligible program costs include building expenses, architect and inspection fees, site development, and site improvement costs.
Approved CCFRF General Facilities loan applications are funded in two phases: (1) the initial funding at 60 percent and (2) the final funding at 40 percent (based on project costs or up to the contract’s maximum allowance, whichever is less). CCFRF General Facilities loan contracting agencies begin making lease repayments to the CDE 180 days after the final funding has been released. Payments are amortized over ten years without interest. Upon full repayment, facility title transfers from the State of California to the CCFRF contracting agencies.
With the CRRL program, the amount that child care agencies may apply for is determined by the contractor’s existing maximum reimbursable amount. Eligible program costs include but are not limited to ADA accessibility signs, children’s bathroom lavatories, fixtures, or controls, and cushioned areas around and under play equipment.
Approved CRRL applications are funded in three phases: (1) the initial funding at 60 percent, (2) the second funding at 30 percent and (3) the final funding at 10 percent (based on project costs or up to the contract’s maximum allowance, whichever is less). CRRL repayment period will vary based on the total loan amount. Loans will be repaid on a monthly schedule, unless otherwise determined by the CDE. The loan repayment period will begin one year from the start date of the contract.