Eligible applicants include:

• New family child care providers seeking to become registered or licensed

• Existing providers advancing from Listed to Registered

• Existing providers advancing from Listed to Licensed

• Existing providers advancing from Registered to Licensed

Applicants must also:

• Be members of the Texas Family Child Care Network

• Pass required background checks for permitting to be considered for funding

What “active application” means:  

• You have already submitted your application to HHSC Child Care Regulation (CCR) to become a Registered or Licensed family child care home

• CCR has accepted it and mailed you a Letter of Acceptance (CLASS Letter 2875).

Note: You can qualify before your permit is issued. You do NOT need to already have your permit in hand — you need a submitted application that CCR has accepted/confirmed.

Offering Infant or Toddler Care

Eligible providers offering or planning to offer care for infants or toddlers younger than 36 months of age should demonstrate a plan and ability to serve infants and toddlers within required child/caregiver ratios. This information is considered as part of the application's scoring, supported by a Docusign attestation and CCR permit application and inspection information.

Child Care Desert

Applicants who are applying to become a registered or licensed family child care home within a child care desert should indicate this on their application.

A child care desert is defined in Texas Labor Code §302.0461(b)(2)(A)(i) as an area where the number of children younger than six years of age with working parents is at least three times greater than the capacity of licensed child care providers in the area.

An applicant's location zip code determines child care desert status. The child care home must be physically located within a designated child care desert zip code. Applicants will attest via Docusign that they are operating or will be operating in a child care desert.

Non-Traditional Hours

Applicants operating or planning to operate during non-traditional hours should indicate this on their application. Non-traditional hours' care is defined as early morning care before 7:00 A.M., evening care after 7:00 P.M., overnight care, weekend care, and holiday care.

Applicants must demonstrate they currently offer or will offer care during non-traditional hours. Applicants must attest via Docusign to the specific hours of care. Applicants must certify that the attested hours are the official operating hours for the location listed in their application.

Note: These focus areas are considered as part of the application's scoring. You do not need to provide services within these three focus categories to apply.

What Funding is Available?

Recipients may receive up to $15,000 per provider. Your specific award amount will be determined based on demonstrated need, funding request, and the strength of your financial planning.

Allowable Use of Award Funds

Allowable costs under the Mini-Grants are those related to health, safety, and child learning, which include:

• Indoor furnishings and supplies;

• Outdoor learning materials;

• Instructional materials;

• Child safety items;

• Personal protective equipment, cleaning, and sanitization supplies;

• General liability insurance;

• Minor repairs and building modifications necessary to ready the dedicated indoor and outdoor learning areas, including fencing, only if and to the extent required for licensing, and excluding construction or major renovation;

• Kitchen and household safety materials or supplies, including fire extinguishers, smoke detectors, and carbon monoxide detectors;

• Permitting fees, for example, for CCR or as related to inspections; and

• Outreach costs associated with recruitment of families and staff.

Reimbursements are only allowable upon request for HHSC CCR application fees and/or required background checks. Reimbursements must include a payment receipt for each paid amount dated within three (3) months prior to the reimbursement request. Please know that reimbursement requests may require an amendment to your award agreement and that your total funding cannot exceed $15,000.

Unallowable Uses of Award Funds

Mini-Grant funds may only be used for the allowable expense categories listed above. Any cost that does not fall within an allowable category is not permitted, whether or not it appears below. The following items are explicitly called out as not allowable under any circumstance:

• Down payments, security deposits, and other one-time payments associated with securing a location to provide child care;

• Construction of new facilities;

• Payments for providers and staff (this includes stipends and salaries)

• Training costs for staff

• Annual training hours (post licensure/registration)

• Major Renovations to existing facilities;

• Vehicles; and

• Equipment - defined as physical items lasting more than 1 year and costing $5,000 or more per item (including acquisition cost)).

Major renovation is defined as:

• (1) structural changes to the foundation, roof, floor, exterior, or load-bearing walls of a facility, or the extension of a facility to increase its floor area; or

• (2) extensive alteration of a facility such as to significantly change its function and purpose, even if such renovation does not include any structural change.

Equipment is defined as physical items that:

• Last more than 1 year

• Cost $5,000 or more per item, including acquisition cost

Acquisition cost means the total cost to buy the item and get it ready to use. This includes:

• The purchase price

• Any needed modifications or accessories

• Installation or setup

For more details about allowable and unallowable costs, visit our spending guide here.

How Can I Apply?

Visit the Texas FCCN website to view or print your application. We recommend saving a copy to help you prepare your responses in advance.

Your application will include key information about your child care business and your plan to become a registered or licensed family child care home.

Step 1: Complete Your Written Application

If you have an active application to become a registered or licensed family child care home, you've already got a plan in mind. As part of the application process, you'll document this plan through a series of questions and detailed business planning components.

Begin by reviewing the application questions available on the Texas FCCN website. Prepare your responses offline before submitting.

Your application is scored across four categories, totaling 100 points:

• Category 1: Provider Readiness — 30 points

• Category 2: Proposed Use of Funds — 18 points

• Category 3: Business Resilience — 42 points

• Interview — 10 points

Category 1: PROVIDER READINESS (30 points)

Goal & Need: Why do you want to start a child care business or advance your permit type? How will this investment strengthen your business and the quality care that you provide? Describe the reason you want to start or advance your child care permit type and explain how the Mini-Grant investment will strengthen your business and the quality of care you provide or will provide. Have you reviewed the Minimum Standards for your permit type, and how will the requested funds help you meet them? Describe your plan to fund the changes you'll make to become a registered or licensed child care provider.

Timeline: Provide a detailed timeline using the Timeline Template, showing the required regulatory steps and all purchases or changes to be funded by the grant, with specific estimated start and end dates. Your timeline should reflect your actual documented CCR permit stage and account for realistic lead times, with all required minor repairs or modifications finishing within the six-month spending window. Submit your timeline using the timeline template.

Category 2: PROPOSED USE OF FUNDS (18 points)

This category asks whether your funding request is justified, allowable, and connected to opening or advancing your home in ways likely to improve quality and/or business resilience.

What is your detailed, itemized plan for using these funds? For each item, what is it, what is its purpose for your program, and how much does it cost? Provide a detailed, itemized list of how you would use these funds. For each item, include a description of what it is, its purpose for your program, and its cost. Use the Funding Request Template to complete your request. The itemized total in your completed template must match the amount you request.  Your funding request should focus on expenses that directly support your efforts to achieve licensure or registration. Funds must be spent within six months after your award agreement is granted. Use exact dollar amounts when possible and keep your goals realistic.

Category 3: BUSINESS RESILIENCE (42 points)

The business resilience section requires detailed information about how you plan to financially support your business. This will include:

Rate Setting: How do you set (or plan to set) the rates you charge families? Briefly explain how you applied your selected method to set your rates and how often you plan to review them. This helps us understand how you set your rates and whether that approach will support a financially sustainable business.

Revenue Awareness: What are (or will be) your program's sources of income? What funding must be secured for your permit change, other than this grant? If you have other funding sources besides this grant and your own investment, have you already secured them?

Demand for Services: How do you know families in your area need the services you will provide? (For example: a waitlist, a new large employer opening nearby, nearby providers closing, or other signs of demand.) Share how you know the families in your area need your services.

• If you're located in a child care desert: How does operating in this area strengthen your business? What evidence do you have of that demand?

• If you offer or plan to offer infant/toddler care: How will offering infant and toddler care affect your business's revenue stability and resilience? What changes (staffing, ratios, space, material) does it require?

• If you offer or plan to offer non-traditional hours: How will offering non-traditional hours strengthen your business?

Note: These focus areas are one way to demonstrate demand for your services. You do not need to offer care within these categories to apply, and not offering them will not count against you.

Cash Flow Forecast: Submit a projected cash flow statement using the provided guide and template. This helps us confirm you're able to manage your cash flow by saving during high-income months to offset low-income months.

Tax Returns: Upload two current tax returns. Business tax returns are preferred (tax years 2023, 2024, 2025, or 2026). An IRS Tax Return Transcript is acceptable. If you are not yet operating a business, personal tax returns will be used instead. This helps us understand your financial track record and whether your business (or personal finances, if you're not yet operating) show consistent financial stability.

Category 4: INTERVIEW

After you submit your written application, you'll take part in a short interview as part of the review process. This is your chance to speak directly about your plan and your finances.

How the interview is scored?

Plan Articulation: Help us to understand your plan by clearly explaining your goal, how the investment strengthens your business and/or improves quality of care, and your plan for staying financially sustainable.

Financial Understanding: Help us to understand your financial picture by clearly and accurately explaining your rates, your key operating costs, and your revenue sources. Your answers should also be consistent with the financial documents you submitted in your application.

Minimum Funding Consideration: 70 Points (70% of 100 total points)

To be eligible for funding, applicants must meet both of the following:

• Applicants must achieve at least 70 points overall, and

• Applicants must achieve at least 70% of the maximum points in each category:

  • Category 1: Minimum 21 points

  • Category 2: Minimum 13 points

  • Category 3: Minimum 29 points

  • Category 4: Minimum 7 points

Meeting both requirements does not guarantee funding, as final selections are based on overall program priorities and available budget. Applicants who do not meet these minimums are not eligible for funding consideration.

Step 2: Gather Your Documentation

In addition to your application materials, you'll also need to provide some documentation to help the review team confirm your eligibility to apply and verify your information. To streamline your application, gather this information in advance:

• Documents that would prove your address location include a utility bill, rental agreement, property deed, mortgage bill, or your current permit if you are permitted.

• Proof of an active HHSC CCR Application for Registration or Licensure: Copy of your application acceptance letter from Child Care Regulation. (CLASS Letter 2875 - click here for an example)

• Background check verification for all required household members (age 14 and older)

• Most recent Tax Returns (Two returns must be submitted): Business tax returns (or personal tax returns if you do not have business tax returns) from years 2023-2026

• A detailed funding request showing the items you are requesting and estimated costs (Template available)

• A detailed timeline outlining the steps you expect to take to obtain your child care permit (Template available)

• Cash Flow Forecast: Submit a projected cash flow statement using the provided guide and template

• Current Permit: If you are currently permitted, upload a copy of your current and active HHSC CCR permit.

• Receipts for application fees and required background checks – these are reimbursable within three months of payment if you provide documentation to support your request.

• Any additional documentation requested to confirm eligibility or permitting progress

Step 3: Submit Your Application Materials

Gather the following supporting documents to strengthen your application:

• General business contact information

• Prepared responses to the application questions, timeline, and financial planning documents (see Step 1)

• Upload the required documentation (see Step 2)

For priority focus areas: If your family child care home is located within a child care desert, offering infant and toddler care, and/or non-traditional hours, you will be asked to sign an attestation form specifying your services as part of the application review process.

Before submission, carefully review your entire application to ensure all sections are complete, clear, well-researched, and your funding request is appropriate. A polished, thorough application reflects your professionalism and attention to detail. You will not be able to edit your application after it is submitted, but revisions may be assigned during application coaching.

Step 4: The Interview

After you submit your written application, you'll take part in a short interview as part of the review process. This is your chance to speak directly about your plan and your finances.

 During the interview, you should be prepared to:

• Explain your goal for starting or advancing your business, and how this investment strengthens your business and improves the quality of care you provide

•  Describe your plan for staying financially sustainable over time

• Explain your rates, your key operating costs, and your revenue sources

Your interview answers should be consistent with what you submitted in your written application and supporting documents.

Step 5: Complete Application Coaching (if needed)

Two types of coaching are available:

• Mandatory Coaching: If your application scores below specific thresholds in key business areas, you will be required to participate in application coaching before final evaluation. Mandatory coaching is designed to support, not penalize, by providing targeted assistance to improve your business operations. Applicants can participate in up to three 30-minute one-on-one coaching sessions with a business coach, with a focus on areas of need identified in the initial scoring of your application.

  • Important: Coaching is provided at no cost to you. Our goal is to help you put together the strongest possible application. Please understand that participating in coaching doesn't guarantee funding approval, but it's a mandatory part of the process when required. Failure to participate in required coaching will result in disqualification.

• Optional Business Coaching Referral: In some cases, applicants with notably low scores will be initially declined for funding and referred to business coaching. In these instances, low scores indicate that key business practices must be put into place prior to consideration for funding. Applicants in this category will be referred based on their area of need. These applicants may also reapply for funding.  

Understanding the Award Approval Process

After submitting your application, it will be evaluated based on eligibility requirements and the strength of your proposal using a scoring system with an overall score of 100 points:

• PROVIDER READINESS (30 Points)

• PROPOSED USE OF FUNDS (18 Points)

• BUSINESS RESILIENCE (42 Points)

• INTERVIEW (10 Points)

Minimum Score: Applications must achieve at least 70 points (70% of the total 100 points) to be considered for funding.

• Up to 200 applicants will receive funding, or until available funds are exhausted.

• Applications that do not achieve a fundable score, or that remain pending when funds are exhausted, will be notified by email that their application has been declined.

Disqualification Criteria

Applications may be disqualified for:

• Incomplete applications

• Funds used for non-approved purposes

• Missed reporting deadlines

• Failure to participate in mandatory coaching

• Low-scoring application materials

• Noncompliance or fraudulent submissions

Step 6: Award Agreement

If your application is approved, you'll receive an email notification with information on reviewing and signing the award agreement outlining specific terms and conditions. This agreement will specify:

• The timeline for spending funds within six months of agreement execution

• Your commitment to participating in CCS once licensed or registered

• Requirements for maintaining proper financial records

• Reporting and monitoring requirements for how funds are used

• Conditions under which funds might need to be returned

Take time to review this agreement carefully before signing, as it constitutes a binding commitment to use the funds as specified.

You will also receive information about submitting required reporting and monitoring documentation in case you wish to complete this obligation as soon as you finish spending your funds. You can learn more about reporting and monitoring in our guide.

Managing Your Texas Family Child Care Start-Up Mini-Grant Award

Payment Distribution

After your award agreement is signed, your one-time disbursement of allotted funds will be processed via direct deposit. Funding recipients will receive onboarding information from Gusto, the Texas FCCN payment system. Funding recipients will be able to enter their payment details into the system directly, after which payments will be sent by direct deposit.

Awards will be disbursed shortly after completion of Docusign agreements and Gusto setup. Applicants will have six months to spend their award and will then be required to submit reporting and documentation of their spending on allowable costs.

Compliance Requirements

You'll need to comply with several important requirements as part of receiving funding:

• Use funding only for allowable expenses

• Retain documentation of all spending for at least 3 years

• Comply with monitoring and reporting requirements within 15 calendar days upon request, including your Final Report using the provided templates

• Notify Civitas Strategies within 10 calendar days if any situation arises that would impact your eligibility

• Return any unused funds at the end of the funding period

Important: You must spend all funds within six months after signing your agreement. If you do not submit requested documentation within 15 calendar days of the initial request, your award may be flagged for noncompliance.

Read the guides Texas FCCN Start-Up Mini-Grant Reporting and Monitoring Guide and the Texas Family Child Care Network Start-Up Mini-Grant Initiative Spending Guide to learn more about documentation requirements and monitoring processes. Failure to comply with terms and conditions may result in recoupment of funds and prevention of participation in future TWC-funded initiatives.

Best Practices for Recordkeeping

If you're awarded a Texas Family Child Care Start-Up Mini-Grant, start good recordkeeping habits right away. Create a folder, either paper or digital, just for grant-related documents. Place all receipts in this folder as soon as you make purchases with grant funds. You should be keeping all grant-related documentation for at least 3 years. This will help ensure you're able to participate in all required reporting and monitoring processes quickly and easily.