Investors and Funders
Stronger Economies, Fairer Communities: The Power of Inclusive Child Care Investment
- Access to affordable, quality child care drives economic growth. It allows parents to work, supports businesses, and prepares children for future success.
- Equitable access to capital is essential. By investing in businesses owned by women, BIPOC (Black, Indigenous and People of Color) and LMI (Low-to-Moderate individuals, and those in and/or serving low-income communities and families, we create a more inclusive and prosperous child care sector.
- Quality child care is an investment in our future. It fosters early learning and helps build strong, equitable communities.
- First Children’s Finance Loan Fund provides the capital that makes this possible.
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
Social and Economic Impact
- Over $19 million in loans funded
- Over 700 loans
- Over 25,000 child care slots created or retained
- Over 4,000 child care jobs created or retained
Financial Strength
- Proven Track Record: With over 30 years of experience, First Children’s Finance Loan Fund has a proven track record of success.
- Low Loan Losses: Our historical loan loss rate has averaged 2.9% over the last 4 years, demonstrating our strong underwriting practices.
- Strong Portfolio Performance: With a 1.8% average delinquency rate over the last 4 years, our loan portfolio has minimal delinquencies and a strong repayment rate.
- Expanding Lending Footprint: While we were founded in Minnesota and continue to serve child care businesses there, we have expanded our reach to include Iowa, Michigan, Missouri, North Dakota, Oregon, South Dakota, Vermont, and Wisconsin.
- Strategic and Sustainable Growth: We are actively exploring strategic opportunities to increase our impact nationwide. This includes, partnerships, market research.
- Government Guarantees: We utilize government guarantees, such as the SBA (Small Business Administration) and MN DEED (Department of Employment and Economic Development) loan guarantee programs, to mitigate risk and provide enhance the security of our loan portfolio.
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
Why Grants Matter: While debt capital is essential, it does not cover the full cost of running our Loan Fund or providing the extensive support our borrowers need.
How Grants are Used:
Grants support our essential operations, allowing us to invest in technology infrastructure, maintain a talented and committed team, and develop effective programs.
To increase the chances of success for child care businesses, grants enable us to offer critical and invaluable resources. This includes coaching, consulting, and individualized guidance throughout the entire borrower journey.
Pass-through grants, when paired with our term loans, help child care businesses overcome financial hurdles and achieve long-term sustainability.
Types of Grant Support: We welcome various types of grant funding, including capacity-building, operational, technical assistance, and pass-through grants to pair with our term loans.
Program-Related Investments (PRIs): As a foundation making PRIs, align your investment portfolio with your philanthropic goals and amplify your impact on the causes you care about. PRIs can include loans, loan guarantees and equity investments.

Our Investors and Funders: Joining Us to Expand Access to Capital and Quality Child Care
Our Loan Fund attracts a diverse range of investors, including:
Banks
Foundations
Individuals
Healthcare systems
Government agencies
Our investors are critical to our mission!
They help us:
Finance child care businesses owned by women, BIPOC, and LMI entrepreneurs, and those serving LMI communities and families.
Expand access to quality child care.
Drive systemic change by:
Addressing inequities in access to capital.
Financing quality improvements.
Partnering with organizations to improve the quality and affordability of child care.
Sharing our expertise to advance the field of child care finance.
Take the Next Step
Contact Ericka Warmack, Director of National Lending, to discuss how your investment can make a difference.
Direct: 612-294-0083
MN SBA Microlender SBA CA SBLC Guarantee Program – MN, MI, IA, ND, SD, IA, MO, WI Only