Kelly, the President of Civitas Strategies, has spearheaded a $219 million funding initiative aimed at driving scalable solutions for microbusinesses, particularly in the child care sector. The initiative comes on the heels of a $39 billion investment in child care through the American Rescue Plan Act (ARPA), which provided a critical lifeline for an underfunded sector amidst challenging times. As the distribution of relief funds unfolds, important lessons have emerged that can guide future efforts to support the child care industry.
One key takeaway from the distribution of ARPA funds is the impact of constraints on the successful use of funds. Programs with fewer restrictions allowed child care business owners to allocate money to their greatest needs and improve their chances for success. On the other hand, funds earmarked for specific purposes limited flexibility and hindered effective utilization. Moving forward, future child care investments should aim to minimize constraints to empower local businesses to strategically use funds.
Clear communication of rules upfront is crucial for businesses to prepare for and navigate funding programs effectively. ARPA funds typically come with rules on spending, tax implications, and monitoring requirements, which, if not clearly communicated from the outset, can lead to unforeseen costs and challenges for recipients. Transparent guidelines help businesses factor in rules into their plans and avoid pitfalls, ultimately supporting successful funding outcomes.
Integrated support and coaching have been found to promote equitable access to funding opportunities. Initiatives that offer coaching support throughout the application and monitoring phases have resulted in greater and more inclusive access to funds. Programs such as Texas’s Child Care Provider Expansion Initiative, which provided coaching to applicants, saw a diverse pool of successful recipients, including people of color and family care businesses with historically limited access to funding.
Streamlined and simplified applications play a critical role in fostering accessibility to funding, especially when time and resources are limited. Balancing the need for comprehensive information with the constraints faced by child care business owners is essential to ensure broad participation in funding programs. By breaking down application requirements into digestible formats, such as distinct questions that can be answered in a few sentences, businesses are better able to navigate through the process and provide essential data to support their applications.
In conclusion, business leaders should pay close attention to the evolving landscape of child care funding and be intentional about developing opportunities that include supports for businesses with lower levels of business acumen or resources. By learning from the lessons of past funding initiatives and implementing strategies to empower small businesses, leaders can maximize the impact of funding while promoting equity and sustainability within the child care sector. Forbes Business Council, as a leading organization for business owners and leaders, offers a platform for networking and growth opportunities for those looking to make a difference in the business community.
