N.M. Code R. § 8.16.3.8

Current through Register Vol. 35, No. 11, June 11, 2024

Section 8.16.3.8 - ELIGIBILITY GUIDELINES FOR LOANS TO CHILD CARE FACILITIES

A. Loans to child care facilities must be used for health and safety improvements to a child care facility, including space expansion, in order to maintain an adequate and appropriate environment for a provider's clients.

B. An eligible applicant:

(1) has been licensed for three or more years;

(2) is not a head start grantee;

(3) has not received a loan in the last five years, unless the loan has been repaid;

(4) may be a private, for profit or non-profit provider;

(5) may be a family home that is a licensed facility;

(6) may be a provider moving to a new facility; and

(7) must comply with all applicable federal, state and local laws and regulations.

C. Priority for child care facility loans shall be given to eligible applicants that:

(1) have facilities serving a proportionately high number of state-subsidized clients and low-income families (by statute, this factor has priority over all others);

(2) intend to use the funds to increase the capacity of the facility;

(3) are non-profit organizations;

(4) intend to use the funds to serve children with special needs;

(5) intend to use the funds to reach levels 3, 4, and 5 of the department's stars program (please refer to 8.16.2 NMAC for further details regarding the department's stars program);

(6) intend to use the funds to increase their capacity to provide care during non-traditional hours;

(7) the department may consider other factors in determining the programmatic priorities of the project, including the proposed loan structure (percentage of equity contribution), programmatic need, loan size requested, and the length of time as a provider.

D. Loans may not be used for:

(1) day-to-day operating costs such as salaries, rent and food purchases;

(2) working capital to cover shortfalls or delays in payments to families, government agencies, or other funding sources;

(3) training expenses;

(4) purchase of televisions, videocassette recorders, DVD players, or related equipment;

(5) vehicle or transportation expenses; or

(6) repayment of loans or reimbursement of previously incurred expenses.

E. A provider that has received a loan from the fund in the immediately preceding five years shall not be given a loan.

N.M. Code R. § 8.16.3.8

8.16.3.8 NMAC - Rp, 8.16.3.7 NMAC, 09/14/07