COVID-19 Financial Resources for Child Care Providers

Small Business Loan Information

Small Business Administration Payroll Protection Program

The Payroll Protection Program (PPP) allows small businesses (including child care providers) to apply for a forgivable loan to keep their workers on the payroll.

The Payroll Protection Program (PPP) allows small businesses (including child care providers) to apply for a forgivable loan to keep their workers on the payroll. Loans may be forgiven in all or in part if employees are kept on the payroll for eight weeks and the funds are used toward payroll, rent, mortgage interest or utilities.

Here’s what child care providers should know:

  • Apply early. The program will award loans on a first-come, first-served basis with funding caps in place, and providers are encouraged to apply early.
  • You apply for PPP directly through your local lender. Start by contacting your local bank or lender and ask them if they are participating in PPP. If they are not participating, ask them if they have a relationship with a bank or credit union that is.
  • Eligible providers can borrow up to 2.5 times average monthly payroll or up to $10 million, whichever amount is less. This amount is intended to help cover 8 weeks of payroll expenses as well as mortgage interest, rent, and utilities.
  • If you meet all the requirements of the loan, it becomes a grant and is forgiven for the total of an 8-week period of payroll, rent, leases, utilities and existing interest payments on mortgages. Part of the loan can also be used for other business-related expenses, like supplies, but that portion of the loan will not be forgiven.

Where to get help:

The state of Michigan has created a website to help you learn more and decide if this opportunity is right for you. Visit the website for more detailed information, FAQs, a list of authorized lenders, webinars, and more.

The First Five Years Fund has also created an FAQ, especially for child care providers. This two-page summary is a helpful tool to determine if you qualify and if the program matches your needs.

Small Business Association of Michigan – Loans & Funding Information 

The Child Care Relief Fund is a non-competitive grant program that helps child care providers in Michigan cover costs during the COVID-19 state of emergency. The goal of the program is to help child care providers stay in business and make child care more affordable for Michigan families.

Learn More and Apply


Unemployment Information

Gov. Gretchen Whitmer, under the federal CARES Act, signed an agreement between Michigan and the U.S. Dept. of Labor to implement Pandemic Unemployment Assistance (PUA) for workers who do not already qualify for state unemployment benefits. Workers include self-employed, 1099 independent contractors, gig and low-wage workers who can no longer work due to the pandemic.

Department of Labor and Economic Opportunity Unemployment Insurance Agency (UIA) follow this link

*As of April 5, 2020, the UIA is working on PUA guidance regarding eligibility and the application process. This information will be released in the coming days.

Self-Employed Question and Answer from the Department of Labor and Economic Opportunity

Question: What if I am a self-employed worker? With PUA, including those who don’t typically qualify for unemployment benefits, such as self-employed workers, independent contractors, low-wage workers and those with limited work history may qualify for PUA. Under PUA individuals will receive an established weekly benefit amount and an additional $600 per week in Pandemic Unemployment Compensation. A new resource could help get you $500 cash assistance now - here's how.

A new resource could help get you cash assistance now - here's how you qualify.

Additional Resources for Child Care Providers


  • What do licensed and license-exempt childcare providers need to know during the COVID-19 State of Emergency?
  • Keeping children and families safe

These resources come from Lake Michigan Credit Union:

We also recommend these sources for Small Businesses managing their COVID-19 responses:

NAEYC recently held a webinar called "Paying Yourself, Your Staff, and Your Bills: Helping Child Care Programs Understand and Navigate SBA Loan Options" You can find the webinar and slides here.

Important Web Pages and Social Media Sites to follow:

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