Cape Cod 5 has announced a special $2 million loan fund for child care and early education providers to be administered by Coastal Community Capital, a local community development financial institution headquartered in Barnstable.
This unique loan pool recognizes the significant strain on the child care and early education industries as a result of the COVID-19 health crisis and the hardships it has presented for our workforce and youth. Closures and capacity reductions have severely impacted providers who must now find ways to rehire staff and pay other key costs in order to resume operations.
“Providing assistance to child care and early education providers is vital to enabling a significant portion of our workforce to go back to work. This program supports both working families and the local businesses who rely on them to serve their customers,” said Dorothy A. Savarese, chair and CEO of Cape Cod 5. “We value the partnership with Coastal Community Capital, as we believe their expertise will enable this program to reach the maximum intended recipients.”
“The majority of childcare is provided by small businesses who have suffered increased burdens due to the pandemic,” said Jeannine Marshall, president of Coastal Community Capital. “Ultimately, we hope this program will improve life for the children, families, businesses and community we live and work in. We commend Cape Cod 5 for their leadership on this pressing issue.”
The bank has committed to funding up to $2 million in loans of up to $50,000 each at a seven-year fixed rate of 3 percent to provide funding for reopening and retrofit costs for established child care and early education entities located in Barnstable, Nantucket, Dukes, Plymouth and Bristol counties. Cape Cod 5 will also provide Coastal Community Capital with a $10,000 grant to defray the cost of administering the loan pool and provide general support to the organization in its mission to provide loan capital to Massachusetts and rural New England businesses that contribute to local economies and create jobs. All loan inquiries and applications will be handled through Coastal Community Capital.