Cape Cod 5 has partnered with a local community development financial institution to create a $2 million loan fund for child care and early education providers.
“This unique loan pool recognizes the significant strain on the child care and early education industries as a result of the Covid-19 health crisis and the hardships it has presented for our workforce and youth,” Cape Cod 5 said in a statement. “Closures and capacity reductions have severely impacted providers who must now find ways to rehire staff and pay other key costs in order to resume operations.”
Cape Cod 5 has partnered with Barnstable-based CDFI Coastal Community Capital on the initiative. Coastal Community Capital will administer the new loan program.
The bank will fund up to $2 million in loans with a maximum loan amount of $50,000. The loans will have a 7-year fixed rate of 3 percent and can be used to fund costs for reopening and retrofitting established child care and early education entities in Barnstable, Nantucket, Dukes, Plymouth and Bristol counties.
“Providing assistance to child care and early education providers is vital to enabling a significant portion of our workforce to go back to work,” Dorothy A. Savarese, chair and CEO of Cape Cod 5, said in the statement. “This program supports both working families and the local businesses who rely on them to serve their customers. We value the partnership with Coastal Community Capital, as we believe their expertise will enable this program to reach the maximum intended recipients.”
Cape Cod 5 said it will also provide Coastal Community Capital with a $10,000 grant to defray the cost of administering the loan pool and to support the organization as it provides loan capital to Massachusetts and rural New England businesses.
“The majority of child care is provided by small businesses who have suffered increased burdens due to the pandemic,” Jeannine Marshall, president of Coastal Community Capital, said in the statement. “Ultimately, we hope this program will improve life for the children, families, businesses and community we live and work in. We commend Cape Cod 5 for their leadership on this pressing issue.”