EL PASO COUNTY, Colo. (KOAA) — People looking to fill the childcare shortage in southern Colorado have a new way to get funding through a loan fund aimed at reducing costs and barriers.
Eastern Colorado Springs has been referred to as a childcare desert, with the highest need located on the east side.
- Watch News5's coverage on the "childcare desert" below:
For many, the cost of childcare is equivalent to in-state tuition, reaching around $20,000 a year.
- Watch News5's coverage on childcare costs below:
This week, a possible solution was introduced to help childcare facilities shoulder costs. The Child Care Loan Fund comes from the Colorado Enterprise Fund (CEF), a nonprofit that helps small businesses get loans when they do not qualify for traditional financing.
"It’s part of our community. We just really feel strongly about supporting childcare ecosystem(s) as much as we can here in Colorado," said Nim Patel, Chief Operating Officer of CEF.
CEF has provided loans to childcare centers across the state for some time. However, this new program lowers the interest rates from nearly 10% to as low as 3.99%.
"A much lower rate than what we’re able to provide to other businesses," said Patel.
"What we control is offering those providers who want to go out and start their service or expand it, an affordable option," said Patel.
The money comes from CEF’s own funds received from state, local and federal grants. Patel said a philanthropic investment organization is giving CEF an insurance policy of up to $1 million, which is why they can lower the loan rates.
Mike Bottoms, a parent who lives on the East Side of Colorado Springs, spends his afternoons with his two children. He and his wife alternate their work schedules to manage childcare.
"I alternate with my wife. She works days, I work nights, Mondays and Fridays, we alternate," said Bottoms. "There were babysitters looking for $30 an hour and childcare centers wanting $1,200 a month."
The prospect of more childcare centers opening could provide parents with more options and more affordable care.
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