Applicant serves a proportionately high number of state-subsidized clients and low-income families  

• You can receive additional prioritization if more than 50% of the children served by your program receive Child Care Assistance, AND 

• if more than 50% of the families you serve are low-income. You can document this in your application in a few different ways: 

• If you are a current child care provider serving families enrolled in Child Care Assistance, you can demonstrate this requirement by reporting on the share of families you serve in the following Child Care Assistance priority categories:  

• Families receiving temporary assistance to needy families (TANF) benefits 

• Families whose income is at or below one hundred percent of the federal poverty level 

• Families transitioning off TANF. 

• Families whose income is above one hundred percent of the federal poverty level but at or below two hundred percent of the federal poverty level. 

• If your program participates in the Child and Adult Care Food Program (CACFP), you can meet this requirement based on the percentage of families in your program that qualify for the higher CACFP reimbursement rate for low-income families.  

• If you have another reliable source of data on the income levels of families in your program (e.g., collecting it on application forms or through a family survey), you may submit that data for consideration.  

Applicant is located in a community with high poverty rates  

Your application will be prioritized if your project will serve a low-income community. Prioritization will be determined at a neighborhood or Census tract level, with progressively higher priority awarded for projects serving neighborhoods or tracts with higher percentages of families with children in poverty. 

Applicant will provide non-traditional hour child care  

“Non-traditional hours” means care that is provided outside of traditional working hours, defined as care that is earlier than 7 a.m. in the morning and later than 7 p.m. in the evening, or care that is provided on the weekend. Applicants can receive additional prioritization if they will provide non-traditional hours of care through the project. 

Applicant will provide infant and toddler care (Department Priority for 2025 Funding Cycle)  

Applicants can receive additional prioritization if they will provide care for infants and toddlers through the proposed project for which you are requesting a loan. “Infants” means children ages zero to 23 months, and “toddlers” means children ages 24 to 35 months. 

Who is eligible to apply for loans? 

Child care providers, including individuals, private businesses, non-profit organization, or entities owned or managed by tribal government in New Mexico are eligible to apply. Employers who wish to provide child care to their employees are also eligible. 

All applicants must be licensed in good standing with ECECD to provide child care, or hold a “provisional loan license” (see below). “Licensed in good standing” means that you hold a current license from ECECD; are in compliance with all applicable laws, regulations, and requirements; and, are in full compliance with any Conditions of Operations imposed by ECECD.  

Are home-based child care providers eligible to apply? 

Yes, home-based programs are eligible to apply as long as they are licensed and in good standing with ECECD to provide child care or hold a “provisional loan license” (see below). Licensed child care facilities of all types, including homes and centers, may apply.  

Provisional Loan Licenses 

What is a provisional loan license? 

All applicants must be licensed in good standing by ECECD in order to be eligible for a loan. However, some applicants may be renovating a facility that doesn’t have a license yet, building a brand new facility that cannot be licensed until construction is finished, or expanding from a registered home to licensed home-based care. 

If you are applying for a loan to build or renovate a child care facility that is not licensed by ECECD, you will need to apply for a provisional loan license as part of this application. You will need to provide a professional blueprint or similar other detailed documentation of all proposed construction plans, as well as a detailed description of your plans to obtain a license to provide care after your facility project is complete. ECECD and NMFA need this information to confirm that the unlicensed facility you are applying for may become licensed in the future. If this information is not included in your application, the proposed project will be deemed ineligible.  

You will need to submit your information to be granted a provisional loan license through the Child Care Facility Loan Fund application. There is not a separate application process to obtain a provisional loan license. The online CCFRLF application will prompt you to provide the information needed to be granted a provisional loan license. 

IMPORTANT: A provisional loan license is NOT a license to provide child care. Provisional loan licenses are issued for the purposes of this loan application only. After your project is complete, you will need to submit a separate licensing application to ECECD’s Child Care Regulatory Unit and become a licensed child care provider before you may provide services to children. A provisional loan license is also not a promise by ECECD to issue a license once the project is complete and the applicant will have to go through the licensing process, and complete all requirements, before ECECD will issue a license to provide child care. 

Who needs a provisional loan license? 

You will need to apply for a provisional loan license if you are not currently licensed to provide child care in the facility for which you are requesting a loan. For example, you may need to apply for a provisional loan license if you are: 

1. Constructing a completely new building. 
2. Renovating another type of facility, such as a home or other building, into a child care facility. 
3. Renovating an existing child care facility that does not have a current license in good standing. 

You will not need to apply for a provisional license if you are renovating an existing child care facility that has a current, unexpired license in good standing from ECECD. 

What type of projects can this loan be used for? 

Your project must involve the physical improvement, repair, maintenance, or expansion of a child care facility, or the creation (building acquisition) of a new child care facility. The project must involve a child care facility licensed by ECECD, or a facility granted a provisional loan license through this application. 

Eligible uses of loans for capital projects might include land or building acquisition, renovation and construction costs, roof repairs, heating, ventilation, and air conditioning equipment, plumbing systems, health and safety and accessibility upgrades, window repairs and replacements, and internet connectivity. 

Loans may also be used for operating capital. Operating Capital includes funds needed to meet short-term obligations, such as accounts payable, wages, debt servicing, or lease and income tax payments, that are related to the creation or expansion of a child care facility and provider services. 

Partial Loan Abatement through Contracts for Services 

Additionally, on March 21, 2025, Governor Michelle Lujan Grisham signed into law Senate Bill 175, which again amended the Act to allow the NMFA to enter into contracts for services with certain borrowers. The following will provide an overview of contracts for services. 

What is contracts for services, and how does it work?  

Contracts for services is an additional option available to loan applicants. A contract for services is an agreement between a child care provider, NMFA, and ECECD that allows qualified borrowers to reduce some of their loan repayment in return for providing child care services. In order to qualify, you must meet additional eligibility requirements and agree to increase the number of children you serve by at least 10% after your project is complete. In return, NMFA will “abate,” or reduce, some of your loan repayment. 

You must agree to meet specific requirements for 36 months within the first 48 months following the completion of the project. Once you meet these requirements, NMFA will abate 25% of the project amount and modify your debt service accordingly. NMFA may abate another 10% of the project amount if at least 50% of the expanded child care capacity you provide is filled by infants and toddlers. 

Complete details on the contract for services policy can be found in NMFA’s Child Care Facility Revolving Loan Fund Policy. Please use this document to review the complete requirements to qualify for contract for services, and loan abatement amounts and conditions. 

Who is eligible for contracts for services? 

You must meet specific criteria and agree to provide specific services in order to be eligible for a contract for services.  

In order to qualify, you must: 

Be located in a child care desert 

• A “child care desert” is a geographic area where the demand for child care exceeds the supply of available care. For the purposes of the 2025 application, a provider will be considered in a child care desert if they are located in a county with a shortfall in either the supply of care overall or the supply of infant and toddler care, according to the 2025 child care supply and demand study commissioned by ECECD and conducted by the Low-Income Investment Fund.  

Provide care during non-traditional hours 

• “Non-traditional hours” means care that is provided outside of traditional working hours, defined as care that is earlier than 7 a.m. and later than 7 p.m., or care that is provided on the weekend. Providers will need to offer non-traditional hours of care in order to meet this criterion. 

Certify that at least 50% of children served receive Child Care Assistance 

• Providers will need to demonstrate that at least 50% of the total number of children they serve receive Child Care Assistance.  

Increase the number of children served at the facility by at least 10%  

• Providers will need to agree that they will serve at least 10% more children at their facility as a result of the loan.  

How do I apply for contracts for services? 

You will be able to indicate in the application whether you are interested in applying for contracts for services. You will need to certify in the application that you meet each requirement above.  

NMFA publishes the complete Child Care Facility Revolving Loan Fund Policy for your reference. This document includes complete details about loan financing, structures, parameters, and other financial requirements for borrowers. Be sure to review this resource to understand the financial requirements for loans from this program before applying. 

What size of loan can I apply for? 

The CCFRLF is intended to provide financing for large capital projects. Loans from this fund may be for amounts between $100,000 and $2,500,000.  

What are the loan terms? 

Applicants may borrow for Facility Loans and Operating Capital Loans.  

Facility Loans: Loans made to acquire, construct, renovate, improve or equip a child care facility will be structured as construction loans, where interest is charged on amounts drawn for a period of up to two years. After the earlier of the completion of the construction or two years, the loan will convert to monthly principal and interest payments for a period of up to 20 years. Loan terms cannot exceed the useful life of the project being financed. 

Operating Capital Loans: Eligible providers may borrow for Operating Capital needed to support the start up or expansion of eligible child care facilities. These loans may be structured as follows: 

1. Lines of Credit for terms of six months that NMFA, in its sole discretion, may renew for up to two additional six-month terms. The lines of credit may be structured as draw down or revolving lines of credit. Interest will be charged monthly on amounts drawn. Outstanding amounts due at maturity may be converted to Term Loans upon approval by NMFA. 
2. Operating Capital Term Loans. NMFA may make Operating Capital Term Loans with terms of up to 18 months with principal and interest due monthly. 

What are the interest rates on loans? 

Interest rates are fixed at two percent (2%) per annum. 

What other financial requirements are needed from borrowers? 

Borrower Equity Requirements. A minimum of ten percent (10%) of total project costs must be contributed to the project budget by the borrower. Equity contributions may be cash or tangible in-kind contributions (e.g. property, materials). 

Personal Guarantees. All financings require personal guarantees from every owner with twenty percent (20%) or more ownership in the applicant. 

Debt Service Coverage Ratio. The NMFA will require Debt Service Coverage Ratio greater than or equal to 1.15x. This evaluation will take into account historical and/or projected revenues to establish the applicant’s ability to cover any existing and proposed debt service. At its sole discretion, NMFA may undertake a multi-year approach to determine eligibility under this test. 

What training opportunities are available that could help me prepare an application? 

The University of New Mexico Early Childhood Services Center will offer a Strengthening Business Practices Training.  

Description: Strengthening Business Practices provides early childhood business professionals with a foundational knowledge of fiscal terms, concepts, and practices for their business. This training provides tips and best practices to help break down fiscal and business processes into manageable steps.  

The training dates are: 

Strengthening Business Practices In-Person events (English): 

• Albuquerque: September 27 at 9 a.m.– 4 p.m.  

• Las Cruces: October 18 at 9 a.m.– 4 p.m. 

• Virtual: October 8 and October 9 at 5 – 8 p.m. 

Strengthening Business Practices In-Person events (Spanish): 

• Albuquerque: October 18 at 9 a.m.– 4 p.m. 

• Las Cruces: October 4 at 9 a.m.– 4 p.m. 

• Virtual: October 6 and October 7 at 5 – 8 p.m. 

To register for one of these trainings, visit nmels.org for registration or email nmels@unm.edu with questions. 

 What other supports can I access? 

UNM Early Childhood Services Center – Provides professional development and support for early learning programs through 5 regional hubs (Albuquerque, Española, Gallup, Roswell, Las Cruces), with a focus on culturally and linguistically responsive practices. Website: Early Childhood Services Center | The University of New Mexico Contact(s): Sarah Simms, ssimms01@unm.edu; Shannon Bracamonte, bracamonte@unm.edu 

ECECD Quality Initiatives Team – Provides information about New Mexico’s Quality Rating and Improvement System (QRIS) FOCUS, and how to participate Website: FOCUS Tiered Quality Rating and Improvement System | Early Childhood Education & Care Department Contact(s): Deanna Balderrama, Bureau Chief Deanna.Balderrama@ececd.nm.gov, Rosario Roybal, Program Manager rosario.roybal@ececd.nm.gov  

Escalones Program – Growing Up New Mexico: Supports family child care providers statewide with coaching, professional development, local networks, and business supports to strengthen quality and sustainability. Website: Escalones Child Care Business Support – Growing Up New Mexico : Growing Up New Mexico Contact(s) 505-819-0136 or escalones@growingupnm.org 

THE Accelerator Program – Growing Up New Mexico: A six-month bilingual program offering professional development, coaching, and expert support to help family child care providers grow high quality programs and strong businesses  Website: THE (Training Home Educators Accelerator) – Growing Up New Mexico : Growing Up New Mexico Contact(s) 505-819-0136 or accelerator@growingupnm.org  

WESST: Provides consulting, training, incubation, and lending to help individuals start and grow sustainable child care businesses.  Website: Child Care – WESST | Consulting, Training, Lending, Incubation Contact(s) Marcela Mendoza at mmendoza@wesst.org. 

ECECD Child Care Business Toolkit: A free online resource (register to access) with policies, forms, and tools for budgeting, marketing, classroom activities, and more to help child care programs save time, reduce costs, and improve quality. Website: ECECD Biz ToolkitLog In  Contact(s): Help@ECECDBizToolkit.org  

Resources 

• NMFA Child Care Facility Revolving Loan Fund Policy 

• 8.9.9 NMAC: Regulations Governing the Child Care Facility Loan Act 

• 8.9.4 NMAC: Child Care Licensing Regulations for Center and Homes 

• 8.9.6 NMAC: Regulations Governing Background Checks and Employment History Verification 

• ECECD Regulatory Oversight Unit 

• ECECD Employer’s Guide to Supporting Employee Child Care