On December 27, 2020, the President signed into law the latest COVID-19 stimulus bill. This includes another round of Paycheck Protection Program (PPP), as well as some improvements to the process. It also changes and extends other stimulus programs that could be beneficial for early care and education organizations.
We encourage all early learning programs to explore these programs if you need financial assistance.
Child Care Associates, the Tarrant County Child Care Contractor, has developed some resources that they are making available to all child care providers. You can access the following resources to determine what is the best fit for you.
- Stimulus Navigator Guide to help you determine eligibility and apply using a step-by-step process
- Webinar recording of Stimulus Navigator: 6 Questions for Every Child Care Provider to explain the opportunities and the Stimulus Navigator Guide
- Find your Small Business Development Center contact who can provide technical assistance on applying for these programs
Frequently Asked Questions
See the Stimulus Navigator Guide for more information related to each question. This information will change frequently so this FAQ is current as of 1.19.2021.
Q: Can I apply for these programs even if I am a nonprofit?
A: Yes! If you have one or more employees, you may be eligible for these programs. This also applies to family child care homes.
Q: Do I have to pay back any funding received from PPP?
A: PPP loans are forgivable provided funds are used for allowable expenditures.
Q: When and where do I submit my PPP application?
A: PPP forgivable loans are administered by banking institutions. Applications are due March 31, 2021, but it is very likely that funding will run out before then. (The first round of PPP in 2020 was used up in 14 days.) The SBA provides an online search engine to find eligible paycheck protection program lenders. You may apply with multiple lenders, but once you are approved for a loan, you must withdraw your other applications.
Q: I didn’t apply for the first round of PPP. Can I apply now in 2021?
A: Yes, you can apply if you are eligible. Also, improvements were made to the program and there is funding set aside for businesses serving underserved communities (both centers and home-based). If you applied for the first round of PPP and did not receive the funding or full funding, please contact your local Small Business Development Center (SBDC) for assistance.
Q: I did receive the first round of PPP. Can I apply for a second time?
A: Yes, you can apply if you are eligible. You must prove that you made less money in 2020 than you did in 2019. You can qualify if you had a decrease in revenue from 2019 to 2020 of 25% or greater (comparing two years, or by comparing quarters such as Q2 2019 and Q2 2020).
In addition to the PPP, you can also apply for the Employee Retention Credit (ERC) if you meet either of the following:
- Had a drop in revenue from 2019 to 2020 in any quarter of 50% or greater; or
- Closed fully or partially due to COVID-19 restrictions (more info can be found here).
ERC is a refundable payroll credit of up to $10,000 and can be claimed retroactively.
Q: Some of my staff needed to take time off due to COVID-19 or remote school for their children. Is there any support for them?
A: Yes! They may be able to take advantage of the Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave Expansion Act. Contact your SBDC for information.
Q: My program is in a low-income community. Are there any other supports available to me?
A: Yes! The Targeted Economic Injury Disaster Loan (EIDL) Advance may be available to you. You apply directly through the Small Business Administration (SBA) and information is forthcoming. The advance of up to $10,000 is a grant, but the loan portion if you apply must be paid back with interest (3.75% for businesses and 2.75% for nonprofits).
Q: How do I get help filling out these forms?
A: You can watch the Stimulus Navigator Webinar for more information, use the Stimulus Navigator Guide, and find your Small Business Development Center contact who can provide technical assistance on applying for these programs.
Disclaimer: The information contained in this presentation has been prepared by Civitas Strategies, LLC and Child Care Associates (CCA) and is not intended to constitute legal advice. The Civitas Strategies and CCA team has used reasonable efforts in collecting, preparing, and providing this information, but does not guarantee its accuracy, completeness, adequacy, or currency. The publication and distribution of this presentation are not intended to create, and receipt does not constitute, an attorney-client any other advisory relationship. Reproduction of this presentation is expressly prohibited.