How do I get a government grant to start a daycare center? (In florida)?
I want it to be in a facility, like a shopping plaza. What about loans? How could I get a loan? I would need a loan big enough to start up including my licensing fee, renting a building, getting the building day care appropriate and so on.2 years ago - 4 answers
Go to grants.gov/ and follow the instructions. The grant for a daycare isn't much. Any reputable lender will require a business plan that shows that you can pay the loan back. Go to sba.gov/smallbusinessplanner/plan/w... or www.score.org/template_gallery.html... for instructions on how to write a business plan and sample business plans. You will personally have to put up 30% of the funds. No bank is going to assume all of the risk.2 years ago
The grant is only going to be a few hundred dollars (like $400-500) anyways.....would not even cover your licensing fees. You would need to start your own PHYSICAL center, get accredited, and inspected. Running the center out of your home will not qualify....therefore that money is not going to put much of a dent into your costs.by Ryan M - 2 years ago
First of all you need to contact the state and inquire as to what the rules and regulations are for daycare centers. There might be some paperwork they want you to sign. There might be a requirement on space or where it could or should be located (like you don't want it in a "busy" shopping plaza; people could stop in and take kids and you'd be libel, the noise could distract the children, it's just dangerous). There might be a requirement as to how many children you could have there or how many people you need to hire per child. When banks loan they don't loan the full amount. And when investors invest they want to make sure your business is already making a profit. I don't know that there are any government grants. No one is going to pay for your licensing fee or renting a building except you.
I'd suggest that you take some courses at the Small Business Administration in your area and while there ask about grants. You could also find a daycare out of town who you could call and ask if you could get an appointment with the owner. then ask them all the questions you have as to how they got started. Because they are out of town they would not be your competition so should be willing to answer your questions.
For both loans AND grants, you will be expected to put up a significant chunk of the money from your own pocket. When I wanted to start up a used book store, just BUYING the store was gonna cost me a quarter of a million bucks...and that was for the inventory and furnishings, not the physical store. I had to show that I had $200K in collateral in order to get a loan which would allow me to buy the inventory, pay for the first couple of years' salary and other expenses, and generally keep the shop open for a couple of years until it started earning money again. And I had to come up with $100K to invest in the business. So I put up our house and the farm (two separate properties) and then cashed in most of my other assets. Starting a new business is not cheap.
You won't get a loan or a grant unless you can come up with a lot of the cash yourself. Really. There are a few exceptions, but you usually have to be a minority or disabled to get those exceptions. You'll have better luck getting your friends and relatives to invest in your new business.
Most new businesses fail because they are undercapitalized. Very, very few businesses will make money at first, you will have a few years when you lose horrendous amounts of money, then you start breaking even, and after five or ten years you will start seeing a profit.
Go to SCORE (Service Corps of Retired Executives) in your area and ask for a mentor. It's free.
I have to warn you, though, that most governments, both state and city, are having to tighten their belts. They might not even have many grants available.