FAQs
Updated 8/23/22
1. Applying
1.1 How far along in the planning does the project need to be to apply for this grant?
This is not intended to be a planning grant. The expectation is that awardees will be able to begin using the funds to implement solutions within a reasonable time frame upon execution of a grant agreement.
1.2 Who is required to submit a Risk-Assessment?
Only non-profit organizations. Public entities do not need to complete this form.
1.3 We are a newer non-profit and just in the process of our first audit and 990 preparation. Is a completed 990 required prior to the application submission?
No, grant applicants who have not been in existence long enough to have a completed IRS Form 990 or audit should submit their most recent board reviewed financial statements.
1.4 What is the appropriate organization to use for our Lead Applicant?
The lead applicant must also act as the fiscal agent for the grant and have the capacity and expertise to receive funds, make payments, monitor project expenditures, and manage the overall project.
1.5 Can a county apply as an intermediary and distribute funds to a collection of childcare providers within the county?
Yes.
1.6 If I was awarded during the first round of this funding, am I eligible to apply in this second round?
Yes.
1.7 Are grants available for projects in the metro area?
Yes, 50% of funds will go to Greater MN based projects.
1.8 Our organization receives state funding from other sources for this project or similar projects. Are we still eligible to apply for and receives these funds?
Yes. In your application identify any other state funding sources being used for this project. Should your proposal be awarded a grant it may affect the final amount of the award at the discretion of the Commissioner of DEED.
1.9 We are a local government looking to partner with one or more child care providers to expand the availability of child care in our community. We don't have experience specifically in child care but have experience in managing grants and supporting economic development projects. Are we an appropriate organization to be a lead applicant?
Yes. In your proposal you will be asked to demonstrate you have the capability to complete the project and that you have all the right partners, including child care providers, to complete the project successfully.
1.10 Would a collaboration between a county and a childcare provider who has a religious affiliation be eligible for funding?
Yes, childcare centers with a religious affiliation are still eligible for this grant. Religious organizations are eligible for Childcare Economic Development grants if they meet all the eligibility requirements and intend to use the funds for the purposes of the grant.
1.11 What do you define as a location or locations? Is it only for programs providing direct child care?
A location would be the facility in which a child program and child care services are being provided. The space in which the child care is being provided could be part of a larger facility that is not providing direct care.
1.12 We would like to utilize funding for staff incentives. Would this be an eligible project even though the staff incentives would not increase our capacity on our license?
Proposals must demonstrate how their project will increase the supply of child care in their community. A proposal that will not result in an increase would not score competitively.
1.13 Are we still eligible to apply for funding if the child care slots won’t be available by the contract end date?
The most competitive proposals will have new child care slots available by the contract end date, December 2023.
1.14 Do we have to already have a DHS license to received funding through this program?
No, you do not need a DHS license however, you must intend to receive your license during the grant period.
2. Grant Administration
2.1 When are grant funds disbursed?
Grant funds are disbursed on a reimbursement basis and no payment will be made until a grant agreement is fully executed between DEED and the grantee.
2.2 Are construction projects required to follow any prevailing wage guidelines?
If the amount of state funds the project is receiving is under $200k, prevailing wage requirements do not apply.
3. Matching Funds
2.3 Does the project have to be completed entirely by Dec. 31, 2023? What if there end up being delays in the project that impact when the availability of new slots created?
Proposals need to plan to end on or before Dec 31, 2023. There is some flexibility for projects if there are unforeseen delays.
3.1 Is the minimum match requirement 50% of the granted funds or a dollar-for-dollar match to the granted funds?
Minimum match requirement is 50% of the granted funds in cash or in kind. For example, if you're applying for a $150,000 grant, you would need $75,000 in match.
3.2 If we are working with several partners, does each partner need 50% match or can the 50% match be for the overall project?
The overall match must be 50% regardless of partners
3.3 Can matching funds be expended before an award and executed grant agreement?
No. Matching funds must be expended after the execution of a grant agreement. All project expenses that happen before a grant agreement is executed cannot be counted as match.
3.4 What does the in-kind match include? Is it just staffing costs or other costs such as travel, supplies, etc.?
In-kind match is the value of any real property, equipment, goods, or services contributed to this project that would have been eligible costs under this program if the grantee had to otherwise pay for such costs with project funds.
3.5 Does the match have to be deposited by the end of August, or can it be a letter pledging their amount?
Non-committed funds can be accepted as match as long as they are expected to be received prior to the grant end date. Please specify which sources of funding are committed vs. non-committed in your proposal.
3.6 How do I apply for a matching funds waiver?
When you submit your application, you will identify that you qualify for a matching waiver. It is located under question #21 of Form 1. You will need to select which criteria you qualify under.
3.7 Can local ARPA funds be used a match?
Yes, ARPA funds could be used as match for this grant.
3.8 Can state funds be used as match?
No, any other state funds used as a part of this project must be identified; however, they do not count as match.
3.9 Can federal funds be used as match?
Yes.
4. Evaluation
4.1 Are projects that have a greater reach more likely to receive funding?
Proposals that demonstrate that their project will serve more communities and/or create more new child care slots will increase the competitiveness of their proposal.
4.2 Do the bonus point focus areas only relate to the location of the program geographically? What if our new program is targeted to a specific BIPOC community and families in poverty from throughout the Twin cities, but our location may not be geographically within the bonus parameters.
The bonus points are specifically awarded based on the geographic location of the project. Please still specify that your program is targeted towards these groups as it will still impact your proposal evaluation.
4.3 How are new child care slots defined?
At minimum new child care slots are defined as an increase in licensed capacity. Proposals that demonstrate their project will increase licensed capacity AND fill those slots in a timely manner will be evaluated as more competitive proposals.
4.4 How do you calculate cost per child care slot?
Total cost of project in state grant funds ÷ projected number of child care slots created.
4.5 Will we get feedback on our proposal?
Yes, we will provide feedback on a proposal if requested by the applicant.
5. Eligible Uses
5.1 Can you explain in more detail under Eligible Uses the section where it states, "Assistance with licensing and other regulatory requirements?"
For example, funds could be used to provide technical assistance to providers looking to start a child care business or expand their business.
5.2 If we do not have a DHS license, can we use funds to help pay for the DHS licensing process?
Yes, funds may be used to help with improvements required for licensing, and assistance with licensing and other regulatory requirements as part of the licensing process.
5.3 Are indirect costs permitted as an expense?
Indirect costs are permitted as administration costs up to 10% of the total budget.
5.4 Can the grant be used towards the cost of acquiring a building or only for the cost of rehab?
Yes, this grant can be used towards the cost of acquiring a building as well as rehab/renovation costs.
5.5 Are "brick and mortar" projects eligible?
Yes.
5.6 What is the difference between "direct subsidies or incentives or retain employees" (an eligible cost) and "revenue for the financing of ongoing operations" (an ineligible cost)? Can you provide an example?
Direct subsidies or incentives can be utilized as part of an one-time use effort to expand the supply of childcare. This funding is not intended to finance and subsidize ongoing operations at current capacity levels.
5.7 Is a revolving loan fund as eligible use?
No, this grant cannot be used to create a revolving loan fund. Zero interest forgivable loans have been used in the past as part of accepted proposals.
5.8 If a new facility is built, is there a deadline to have the facility open?
There is no specific deadline for the facility to open but we want the funds getting to work as soon as possible.
5.9 Can funds be used for school aged children?
No, this program is intended to increase the supply of child care for non-school age children.
5.10 Can an applicant use capital funds to renovate a space to create a new child care room for the in-kind match?
Yes.
6. Partnerships and Collaboration
6.1 What level of commitment are partners required to contribute? Are they required to make financial contributions, or can it be sharing of space/resources?
Contributions can be either cash or in-kind.
6.2 If we have been working with Think Small and/or First Children's Finance, would they be considered as partners?
Yes, absolutely.
7. Funding
7.1 Would it be possible to split the max $300,000 in a way that one location could receive $250,000 and another location could receive $50,000 or is it a true max of $150,000 per location?
The maximum a single location center-based project could receive from this program is $150,000.
7.2 The maximum award is $300,000. Would the maximum award still be $300K to be split between the 2 organizations or would two organization be able to request more than $300K?
The maximum award per proposal is $300,000. The maximum number of awards is one per lead applicant. A lead applicant in one proposal cannot be a programmatic or financial partner in another proposal.
