Investors and Funders

Stronger Children, Communities and Economies

Quality child care drives economic growth — it allows parents to work, supports businesses, prepares children for future success, and strengthens communities.

First Children’s Finance Loan Fund provides the capital that brings child care dreams to life, investing in businesses owned by LMI individuals and those serving economically challenged families.

Connect with Ericka Warmack, Director of National Lending

Ready to discuss your investment or partnership opportunities? Contact Ericka today!

Direct: 612-294-0083 Email: erickaw@firstchildrensfinance.org

Financial Strength

30+ year track record of lending to child care businesses

2.9% average loan loss rate over the last 4 years, demonstrating strong underwriting practices

1.8% average delinquency rate over the last 4 years, with strong repayment performance

Lending across nine states with an expanding footprint: Minnesota, Iowa, Michigan, Missouri, North Dakota, Oregon, South Dakota, Vermont, and Wisconsin

Government-backed lending through SBA and MN DEED loan guarantee programs to mitigate risk and enhance portfolio security

Actively exploring strategic partnerships to expand lending capacity

Flexible Investment Opportunities

We offer various ways for investors to partner with us and support our mission. To maximize our impact on the child care sector and ensure our long-term sustainability, we rely on a combination of debt and grant capital.

Debt Capital

Invest in our Loan Fund and directly finance loans to child care businesses. We offer competitive rates and flexible terms, and use government guarantees, like SBA and MN DEED loan guarantee programs, when applicable.

Grants: Loan Fund Essential Functions

Why Grants Matter: While debt capital is essential, it does not cover the full cost of running our Loan Fund or providing the extensive, time-sensitive support our borrowers need.

Grants: The Engine Behind Every Loan

Debt capital funds the loans. Grant capital powers every step of the borrower’s journey.

In a CDFI, the lending team IS the program. Every loan starts with a child care entrepreneur reaching out to us, and grant capital supports each step of that journey:

First point of contact — hearing the borrower’s story, pre-qualifying, gathering documents, and preparing the file for underwriting
Underwriting and loan structuring — every borrower has a story, even one with a few rough chapters. Our underwriting supports that story with the numbers, structures the right loan, and guides it through approval and closing.
Portfolio management — monitoring repayment, compliance, and connecting with borrowers who may need additional support
Technical assistance — coaching, consulting, and helping borrowers stabilize and succeed
Technology — loan origination and portfolio servicing platforms that make the team more efficient and the borrower experience smoother

Types of Grant Support: