As Granite State families confront the shortage of approximately 9,000 licensed childcare slots, Merrimack County Savings Bank is bridging the gap with its CareWork Loan Program. The program is geared to helping people starting or expanding childcare centers located in people’s homes.
“The lack of affordable childcare is a top concern among the communities we serve,” says James Gallagher, senior vice president and commercial loan officer at The Merrimack. “To address the growing issue, we had to think outside the box to create a program that not only supports childcare providers but families in New Hampshire.”
Working in partnership with A Place to Grow, which has childcare centers in Brentwood, Durham and Salem, the CareWork Loan Program offers financing and support.
Jennifer Legere, founder and director of A Place to Grow, says coming up with tens of thousands of dollars needed for improvements to family-based childcare centers is often out of reach for these providers. People who qualify for the loan program are eligible for up to $150,000. “This is a perfectly appropriate amount. The most expensive thing to add to a center is fencing, typically costing around $10,000,” Legere says. “Equipment is number two.”
Legere says the program’s origin was a Goldman Sachs business program where she learned about Merrimack Savings Bank’s commitment to housing and childcare. “Their focus on solving community problems spoke volumes about them being a community bank,” she says.
The plan bypasses large down payments of 5% to 20% that many people can’t afford, Legere says. “Access to capital is a big issue in childcare,” she says. Not only does the CareWork Loan Program not require capital up front, it is also flexible on credit scores. “They’re looking for these borrowers to be working with a partner or a business consultant,” she says. “It’s so important to make sure someone is supporting you because most businesses in New Hampshire fail in 3 to 5 years.”
Legere is available to provide education and support for those who receive loans. “We want people to identify that they can do this, because funding is the largest barrier to opening a business,” she says. For more information, visit themerrimack.com/business/lending.
