FAIRMONT– The Fairmont Economic Development Authority previously started a Child Care Loan Program. FEDA recognized that child care is a challenge in the community and designed the loan program to encourage people to stay in child care and attract people who want to start a child care service.

According to a study done by FEDA, Fairmont has a shortage of 72 licensed child care slots. This also relates to employees in the area. This affects different aspects of life including employment, financially and risk of could development.

Child care-related issues represent 45 percent of employee absenteeism in the workforce. Sixty-five percent of parents’ work schedules are affected by child care challenges.

It’s estimated that businesses lose $3 million annually because of child care issues. Early childhood development is crucial and a part of child care services. According to studies, 90 percent of brain development happens within the first five years of life.

Economic Development Coordinator Linsey Preuss said that up to 10 child care providers can be helped in this community and if it’s successful the program can be allocated more funds. The investment amount is up to $1,000 per applicant until $10,000 is expended. The interest rate of that loan is 0 percent. The loan is forgiven quarterly by 25 percent and if the child care business remains in business for one year the loan is forgiven entirely.

“The hopes for this new program is that we will continue to retain our child care providers that we have because we really at this point don’t want any to leave the field because that will increase our shortage,” Preuss said. “We also want to encourage new child care providers to enter the field.”

The eligibility criteria for this loan are to childcare providers located within Fairmont. Businesses must provide full-time childcare services and primary consideration will be given to projects which will create new childcare slots.

The use of funds can be used for structural maintenance relating to providing child care, equipment, and code work. An example of structural maintenance is putting an egress window. Equipment can be things such as toys or plates. Codework could be things such as putting in a new railing on a house’s stairs.

Following loan approval, the borrower shall execute a promissory note. Awarded funds will then be disbursed upon the submittal of receipts or invoices for purchases. The proposed expenses though must be submitted within six months of loan approval.

Applications will be reviewed on a first-come-first-serve basis until allocations are gone for the year. Applications will be reviewed for eligibility and overall merit by FEDA staff. Your application may be approved as is, approved with changes, or denied. In general, an application will be reviewed within 14 days of submittal of a complete application. The loan closing will be scheduled within 21 days of the submittal of evidence of purchases and payment.

The overall message Preuss wanted to send to readers and the community is that there is a need for child care and that FEDA realizes the need.

“The reason that FEDA is involved is because we work with businesses a lot,” Preuss said. “One of the challenges for businesses is they can’t find employees and one of the reasons why is there is a child care shortage and a housing shortage. So those are two things we are really trying to work on so we can encourage more people to get back into the workforce.”