Child care facilities have a direct impact on the quality of programs. Well-designed space encourages children to act independently and explore, and allows for more interaction between teachers and children. Recognizing the importance of developing quality space for early care and education, CHEFA and the State of Connecticut have developed three specialized child care facility financing programs and have become increasingly involved in a range of statewide initiatives to broaden access to quality programs.

Child Care Facility Loan Fund (CCFLF)

The CCFLF was created through Public Act 97-259, establishing three separate programs to finance the construction of child care facilities: The Tax-Exempt Financing Program, Guaranteed Loan Program and Small Direct Loan Program. Each is managed by the Department of Social Services and State Department of Education, and administered through CHEFA.

• Small Direct Loan Fund provides loans of up to $25,000 for minor renovations, licensure, or upgrading educational equipment. Borrowers can be either home- or center-based providers.
• Guaranteed Loan Fund provides loans of up to $2 million for new construction or renovation of facilities. These low-interest rate funds are available to experienced, center-based providers.
• Pooled Tax-Exempt Financing Program provides subsidized loans with the state paying at least 80% of the annual debt service for the expansion of child care facilities. Borrowers must be either a municipality, local board of education or 501(c)(3) not-for-profit center-based provider.


Applications: