Partnering to Provide Capital Where It Helps Most
Child care is essential infrastructure for a functioning economy, enabling parents to work, supporting employers, and strengthening communities.
We partner with investors and funders to deploy capital directly to child care businesses, supporting entrepreneurs who are building, growing, and sustaining the supply of care families depend on. Our financing reaches businesses that are often overlooked by traditional lenders, with a focus on those serving low- and moderate-income communities.
Why Investors Trust Us
- 30+ year track record of lending to child care businesses
- 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 partnerships to expand lending capacity
- 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
Michigan Child Care Owner Overcomes Adversity
All child care providers face challenges as part of business, but LaDonna Kimbrough of Red, White, and Blue Childcare Center in Eastpointe, MI is proof that even an obstacle like brain surgery can be overcome with the right attitude, teammates, and help from the FCF Loan Fund.
When Capital Meets Child Care
Over 30 years of Impact
- Over $20 million in loans funded
- Over 26,000 child care slots created or retained
- Over 4,000 child care jobs created or retained
- Over 800 loans
In 2025:
- We disbursed more than $1.6 million in loans across five states (MN, MI, VT, ND, WI)
- More than 49 percent of total loans went to rural borrowers ; average loan to a rural borrower was more than $22,000
Partnerships Support the Entire Lending Picture
Debt Capital:
Investments in our Loan Fund directly finance loans to child care businesses. We offer competitive rates and flexible terms, and use government guarantees, when applicable. We also welcome Program-Related Investments (PRIs) from foundations seeking mission-aligned returns.
Grants:
Debt capital funds the loans. Grant capital powers every step of the borrower's journey, including the extensive, time-sensitive support our borrowers need. 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:
- Lending infrastructure
- Technical assistance
- Capacity-building
Our Investor/Funder Partners
Our Loan Fund attracts a wide range of investors and funders who recognize the importance of child care in local communities.
Let’s Make Dreams Happen Together
Contact Ericka Warmack, Director of National Lending, to discuss how your investment can make a difference.