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New Montgomery County Celebrates First Cohort of Early Care and Education Facility Loan Program Awardees
Montgomery County’s Department of Health and Human Services (DHHS) recently celebrated the inaugural awardees of the County’s Early Care and Education (ECE) Facility Loan Program, a first-of-its-kind initiative designed to expand access to high-quality child care for Montgomery County families. Program investments are expended to help create nearly 200 new child care openings across the County.
The event recognized child care providers leading facility improvement and expansion projects through the program and highlighted the County’s continued commitment to strengthening the local child care system and supporting working families.
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Launched in October 2025, the ECE Facility Loan Program provides forgivable loans and zero-percent interest loans to help child care providers expand, renovate, and improve their facilities. The program supports both family child care providers and child care centers in increasing licensed capacity, enhancing program quality, and creating safe, nurturing learning environments for children.
“We know that the child care industry has operated for years on an unsustainable business model that leaves many providers without the capital needed to expand, modernize, or complete critical facility repairs,” said Montgomery County Executive Marc Elrich. “Investing in our youngest residents yields the greatest returns, for families, for our workforce, and for our community’s future. This first‑ever loan fund program strengthens our system that supports children and families. By directing funding to areas with the greatest shortages, we are helping more families access stable, high‑quality child care they deserve.”
The program generated significant interest during its first application cycle, receiving more than 100 applications from providers across the County. The response demonstrated the ongoing need for accessible capital and highlighted the importance of supporting child care businesses as they maintain and improve their facilities. Applicants represented a broad range of provider types, project scopes, and Maryland EXCELS quality levels.
Highlights from the first cohort of the ECE Facility Loan Program include:
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- More than 100 applications were received.
- Nineteen projects were recommended for funding.
- Total approved funding is $2.268 million, including $868,000 in forgivable loans and $1.4 million in zero-interest loans.
- Expansion projects account for most of the zero-percent interest loan funding and are projected to create 178 new licensed child care seats.
- Approved providers are located primarily in areas with high- and moderate-shortage of child care options, helping address critical access gaps for infants, toddlers, and high-quality programs across the County.
- Recommended projects include 12 family or large family child care providers and seven child care centers.
Among the selected projects, nine are forgivable improvement projects, and six are forgivable expansion projects. The program also includes one zero-interest improvement loan and three zero-interest expansion loans for child care centers. Five loans received Reinvestment Fund lending approval, and the first loan closed in late April.
For more information about DHHS’ early childhood initiatives, visit the Montgomery County ECE website.
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Read the original article at mcdhhs
