Capital Finance

Capital Finance: Are There Effective Public-Private Strategies for Building Early Care and Education Facilities?

This issue brief from the conference, 2004 Learning Community on Early Care & Education Finance Reform, describes financing approaches for building early care and education facilities. Grant funds, general obligation bonds, tax credits, loans, credit enhancements, nonprofit community development lenders, and 501(c) 3 revenue bond debt are addressed. Public-private partnerships, including lenders, philanthropies, public officials, and child care practitioners and advocates can most effectively combine resources and expertise. Successful supply-building programs provide both grant and debt capital and specialized technical assistance on both facility design/construction and financing. A systems change agenda is needed to improve child care revenue streams and generate appropriate sources of capital subsidy for facilities development. Discussion questions and resources are included.