Overview of the Program:

The City of Oxford has created a forgivable loan program of up to $30,000 for costs related to the growth of existing or creation of new licensed childcare facilities within the City of Oxford. Funds can be used for any aspect of creating a new childcare business or expanding the capacity of an existing childcare business resulting in an increase in the number of clients served. 

The City of Oxford Childcare Business Forgivable Loan Program is administered by the Oxford Community Improvement Corporation, a nonprofit organization made up of representatives of city government and the community. The CIC will review loan applications and make recommendations on them to the Oxford City Council, which will authorize them. 

Use of Funds:

The load may be used for the following:

  • Childcare licensure and start-up costs.
  • Capital costs for required build-out or renovation of childcare space or the required equipment to operate a childcare facility.
    • This may include costs related to child safety and security, including fencing, locks, barriers, etc.
    • Materials include art, supplies, blocks, toys, language arts, and auditory equipment/materials, bedding, etc.
    • Supplies include all chemicals and tools required for cleaning and food service or preparation.
  • Workforce recruitment and retention, including costs related to background checks or screening of employees, individual certification and training, etc.

Eligibility:

  1. The business must create new or expanded childcare options within the City of Oxford.
  2. This program is open to both home childcare providers and commercial daycare facilities.
  3. The business has a physical location within the City of Oxford corporate limits.
  4. The business must adhere to all city zoning regulations.
  5. The business will become a licensed childcare provider through Ohio Jobs and Family Services and will accept OJFS childcare vouchers.

Loan Terms:

The loan amount can vary up to $30,000 based on program resources, the business's needs, and eligible expenses. The loan term extends 60 months, with one payment each month. 

  • Loans have a 3% interest rate.
  • Loan payments will be suspended for the first 12 months following an award payout to allow the funds to be used for childcare business development. 
  • Payments may continue to be suspended if the childcare business meets the requirements for operation and new client service.
  • Loan forgiveness is possible for a business that successfully implements its proposed project, operates an Ohio Jobs and Family Services (OJFS) licensed childcare facility, and accepts OJFS childcare vouchers for a minimum of 12 months.

How to Apply:

Applicants should complete the childcare loan prescreening form. 

Prescreening forms will be reviewed for appropriateness and eligibility, and qualified applicants will be invited to complete a full loan application packet (applicants will hear from a city staff member within 2 to 3 business days to discuss their proposal and review the next steps.)

The full application packet will require detailed descriptions outlining the use of all funds. Documentation should include any related vendor quotes or contracts, supply and material pricing/costs, photos, and/or project and product descriptions, etc.

Once an application is recognized as eligible for an award, a loan agreement between the recipient and the City of Oxford will be created. The applicant will receive a payment for all funds for which they were deemed eligible. 

This is a forgivable loan program. Repayment will be suspended for an initial period of one year. During this time, the applicant must complete all projects and exhaust all loan funds as outlined in their application. If any project plans, material costs, etc., differ from the application, detailed information outlining any changes must be submitted and approved in order for loan forgiveness to be considered. 

Loan Application Requirements:

  • Applicant must demonstrate creditworthiness and ability to pay back the loan.
  • Applicant must demonstrate the ability to complete any projects associated with a loan award within 12 months of receipt of funds. 
  • Applicant must demonstrate the ability to receive Ohio Job and Family Services childcare licensure and continuously operate the childcare business successfully for a minimum of 12 months following the use of funds and related business development. 
  • The childcare business must accept OJFS childcare vouchers. 
  • Applicant must demonstrate sound commercial or personal finance history, including creditworthiness, limited debt, limited liability, etc.
  • Applicant must show that the proposed loan is of sound value or so secured with applicant's assets or property so as to reasonably assure repayment.
  • Applicants must show that the past earnings record and/or future prospects of the business indicate the ability to repay the loan and other debt out of profits.

The loan application will consist of:

  • Completed application form
  • Personal financial statement (for new businesses)
  • Previous year's profit loss statement for business (for existing businesses)
  • Previous year's business balance sheet (for existing businesses)
  • Previous year's personal or business income tax filings
  • A copy of three credit reports (available free annually from www.annualcreditreport.com)

The loan shall be secured in one or more of the following manners:

  • Universal Commercial Code filing
  • Personal guaranty of the owner(s)

The loan is to be used for new costs associated with creating new childcare opportunities within the City of Oxford. Funds may be used for any costs associated with capital improvement, capital equipment, training, licensure, etc. Loan funds cannot be used to finance existing debt, or any cost not associated with the creation of new childcare services.

Loan forgiveness is possible for a business that successfully implements their proposed project within 12 months an then operates an Ohio Jobs and Family Services licensed childcare facility and accepts OJFS childcare vouchers for an additional 12 months.

Application Timeline:

Pre-Application Screening Applicants will hear back on eligibility within 2 to 3 business days. Full Loan Applications are accepted on a rolling basis until funds are depleted. Once submitted, you can expect to hear back within six weeks. Additional information may be requested to evaluate your application. 

Pre-Application Form:

Pre-Application

Frequently Asked Questions

Yes, this loan assists both existing and new childcare providers. When filling out the application, please be clear about whether you have an existing business or a start-up. Existing childcare businesses must demonstrate how these funds will be used to expand the childcare business to increase the number of children supervised.  

Yes, this loan assists both in-home childcare and commercial childcare providers. When filling out the application, please be clear if you will use funds at a residential or commercial location.  Please be aware that in-home childcare business applications will only be considered for privately owned, single-family homes. We cannot provide loans to those renting or leasing homes from a third party. 

  • Childcare licensure, application, inspections, and related start-up costs. 
  • Capital costs for required build-out or renovation of childcare space. 
    • This may include costs related to child safety and security, including fencing, locks, barriers, etc. 
  • Capital costs for required equipment and materials to operate a childcare facility. 
    • Art supplies, blocks, toys, language arts and auditory equipment/materials, bedding, etc.
    • Cleaning supplies and tools, food service and preparation.
  • Workforce recruitment and retention, including costs related to: 
    • Employee background checks or screening. 
    • Individual certification and training, etc. 

Applicants must provide the following:

  • Current business plan. 
  • Personal financial statements. 
  • Two years of federal tax statements. 
    • New businesses must submit personal tax statements. 
    • Existing businesses must submit business tax statements. 
  • Cash flow projections, forecasting a minimum of two years of future operation. 

Once you submit your application, you can expect to hear back within six weeks from the date it was submitted.  However, additional documentation may be requested to properly process the application. Receipt of a loan may take up to twelve weeks to be awarded. 

No, but you may submit a new application with updated information. If you submit a new application with adjustments only the latest applications will be used to verify eligibility. 

Yes, you may reapply in the future to see if you become eligible. Staff will help provide feedback on areas of your application that will need attention to improve your eligibility for this program.

Loan payments depend on your request in the application and what expenses are deemed eligible after reviewing your application.  Proposals may receive up to a maximum award of $30,000.00 for eligible expenses.

Type A providers can care for 7 to 12 children at a time. Each staff member can care for no more than six children at one time (and no more than three children under 2 years old).   

Type B providers can care for no more than six children at one time (and no more than three children under 2 years old). Children under 6 years of age related to the provider (including the provider’s own children) and residents of the home must be included in total group size. 

Additional information regarding regulation, oversight, and licensing of childcare centers can be found through the Ohio Department of Job and Family Services at jfs.Ohio.gov/child-care 

For any questions or requests for additional information, please contact the City of Oxford’s Economic Development Specialist, Seth Cropenbaker, via email at scropenbaker@cityofoxford.org or via phone at (513) 524-5238.