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7 Best Grants to Start a Daycare [Government Grants Included]

Yes. There are available grants to consider when looking to start a daycare center in the United States. Truth be told, venturing into this business can be quite costly and daunting. However, by leveraging the wide range of grants available for these businesses, you can start up this business and enjoy a rewarding experience.

By taking the time to research grants, understanding your eligibility, and putting out a viable grant application, you can obtain the resources you need to start your daycare center. There are numerous grants available to aid you with starting a daycare center.

Aside from government grants, there are also private grants for day-care providers who require financial assistance for their operations. Most often, businesses in this line require money to cover construction and renovation projects, equipment purchases, and labor and administrative costs. Grants also help low-income parents with paying for childcare expenses.

Available Grants to Start a Daycare Business

  1. Community Development Block Grant

The U.S. Department of Housing and Urban Development over the years has sponsored the Community Development Block Grant program. These grants are routed via state and local government agencies to fund capital projects and bolster the living and economic conditions of communities.

Most often, these projects will encompass land purchases, acquiring, constructing, or renovating public facilities such as daycare centers, neighborhood centers, and other nonresidential buildings.


Qualified grantees include;

  • Principal cities of Metropolitan Statistical Areas (MSAs)
  • Other metropolitan cities with populations of at least 50,000
  • Qualified urban counties with populations of at least 200,000 (excluding the population of entitled cities)
How to Apply

Reach out to your state department Housing and Urban Development.

  1. Community Facilities Grant Program

This is another option to consider especially since the U.S. Department of Agriculture awards grants via its Community Facilities Grant Program to rural areas. The essence of these funds is to support the construction, expansion, and renovation of essential facilities utilized for community, public safety, healthcare, and public services such as day-care centers.


Cities, towns, and districts with less than 20,000 residents are qualified to apply for grants. Places with the lowest population and income levels obtain higher priorities for funding.

How to Apply

Visit your state department of agriculture

  1. Child Care Development Block Grant

Note that these grants are awarded to state and local government agencies and nonprofit organizations to ensure that low-income families can pay for day-care services while they work or prepare for work. The work of this grant is to augment the differences between the applicants’ co-payments, which are dependent on numerous variables such as incomes, family sizes children in daycare, and the full costs of childcare services.

Aside from that, the grant program also financially helps day-care centers in making vital modifications to their facilities to meet health and safety standards.


This 30-year-old funding stream is used to help low-income, working families afford child care while supporting children’s learning and development.

How to Apply

Visit your state Department of Health and Human Services

  1. Child Care Access Means Parents in School

Universities and colleges will qualify for this particular grant if they are looking to put in place grants to establish day-care centers for low-income students.

The Department of Education provides grants to academic establishments whose students cumulatively obtained more than $350,000 the previous academic year to fund child-care services operating prior to and after school hours so students who are parents can continue with classes.


To take part in this program, you will need to be a low-income parent who is qualified to receive a Federal Pell Grant.

How to Apply

Every applicant is expected to submit an application online through

  1. Child and Adult Care Food Program

Regardless of whether you own and manage a licensed daycare out of your home or a day-care center, it is possible to apply for the Child and Adult Care Food Program. Have it in mind that this program is federally funded, but distributed by the state.

Those interested apply to be reimbursed for nutritious meals and snacks that they make available to kids who attend that come from low-income families.

  • Child Care Centers
  • Adult Day Care Centers
How to Apply

Visit the CACFP web page and fill out the necessary forms.

  1. The U.S. Small Business Innovation Research Program (SBIR)

If your intention is to start a daycare that can revolutionize the daycare industry, the Small Business Innovation Research Program (SBIR) has grants you should look into. Via a competitive awards-based program, SBIR makes it possible for small businesses to explore their technological potential and make available the incentive to profit from its commercialization.


To be eligible for funding through the SBIR, you will need to first register your business on their website. You will also have to be classified as a Small Business Concern (SBC). An SBC will also need to be at least 50% American-owned by at least one or more individuals who are permanent residents of the United States.

How to Apply

Register with SBA in the Company Registry Database at and send in a certification with its SBIR application to the SBIR agency.

  1. S. Department of Commerce Minority Business Development Agency (MBDA)

This is another valid option to consider if you are looking to start a daycare in the United States. The MBDA is a Washington, DC-based organization established in 1969 by President Richard Nixon.

The sole intention of this grant is to boost more minority-owned businesses in the United States. This organization over the years has offered numerous programs either to boost your existing business or to help you in starting and managing one.


To be eligible, your business will need to be “at least 51% owned and operated by an individual that is at least 25% African American, Asian, Hispanic, or Native American” per Fundbox. To obtain funding, your daycare center will also have to be certified by the Small Business Association.

How to Apply
  • Register your business to apply for an MBDA grant
  • Understand the Grant Announcement
  • Attend a pre-application teleconference to learn more about the grant and requirements
  • Understand the evaluation process
  • Prepare and Submit the Application.

Mentioned above are top grants to consider when looking to start a daycare business in the United States. By taking the time to research grants, understanding your eligibility, and putting out a viable grant application, you can obtain the resources you need to start your daycare center.