What is the Texas FCCN Start-Up Mini-Grant Initiative?

The Texas Family Child Care Network Start-Up Mini-Grant Initiative provides up to $15,000 per child care provider to help family child care providers cover costs to support them in becoming registered or licensed. Up to 200 providers will receive funding through this Texas Workforce Commission initiative.

Who can apply?

You must have an active application with HHSC Child Care Regulation (CLASS Letter 2875) to become a registered or licensed family child care home and be a member of the Texas Family Child Care Network. You'll need to submit your CCR application acceptance letter along with documentation of passed required background checks with your mini-grant application. Both existing and new providers are eligible to apply.

What does “Active Application” mean?

An "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, and CCR has accepted it and mailed you a Letter of Acceptance (CLASS Letter 2875)

Click here to view an example of the Letter of Acceptance.

Priority will be given to applicants who:

• Offer infant or toddler care (younger than 36 months)

• Operate within a child care desert

• Offer non-traditional hours (early morning care before 7:00 A.M., evening care after 7:00 P.M., overnight care, weekend care, and holiday care)

Do I need to be already permitted to apply?

No. You need an active CCR application to become registered or licensed, but you don't need to have your permit yet.

How are applications scored?

Applications are evaluated using a 100-point system across four categories:

• Provider Readiness: 30 points

• Proposed Use of Funds: 18 points

• Business Resilience: 42 points

• Interview: 10 points

To be considered for funding, applications must achieve:

• a minimum overall score of 70 points (70%),

• AND at least 70% of the maximum points within each category

  • Provider Readiness: 21,

  • Proposed Use of Funds: 13,

  • Business Resilience: 29,

  • Interview: 7

The most competitive applications demonstrate comprehensive planning across all categories. Meeting the minimum score does not guarantee funding— final selections are based on overall application strength and available budget.

What are the main parts of the application?

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

1. Provider Readiness (30 points):

• Goal & Need: why you want to start or advance your permit, and how this investment strengthens your business and quality of care

• Understanding Requirements: your understanding of the Minimum Standards for your permit type

• Timeline: using the required Timeline Template, showing your CCR permit stage and all grant-funded purchases within the six-month spending window

2. Proposed Use of Funds (18 points):

• Funding Request Template: an itemized list of items/services, purpose, and cost (max $15,000)

• Funding Narrative: justification for why each item is needed and how it supports your permit goals

3. Business Resilience (42 points):

• Rate Setting, Revenue Awareness, and Demand for Services narrative responses

• Cash Flow Template projection

• Two consecutive years of tax returns 2024, 2025, or 2026 (business, or personal if not yet operating) and proof of liability insurance

4. Interview (10 points):

• A short interview after you submit your written application, covering plan articulation and financial understanding

Other required documents (not scored, but required for eligibility):

• Proof of location,

• CCR Application Acceptance Letter,

• Current permit (if applicable), and

• Background check verification letters for all household members 14 years of age or older.

How much can I receive?

Up to $15,000 per child care provider. Your specific award amount will be determined based on your funding request supported by demonstrated need, and the strength of your financial planning.

How is funding distributed?

Funding is paid in one single payment which will be disbursed via direct deposit. Once you sign your award agreement, you’ll be invited to set up a profile in the mini-grant payment system, Gusto.

How do priority areas affect my application?

Applicants offering infant or toddler care, operating in a child care desert, or offering non-traditional hours are prioritized for resource distribution and support. These factors are considered as part of demonstrated need within your application primarily within the Business Resilience category, if applicable to you:

• Infant/Toddler Care (younger than 36 months)

• Child Care Desert Location

• Non-Traditional Hours Care (early morning care before 7:00 A.M., evening care after 7:00 P.M., overnight care, weekend care, and holiday care)

We will prioritize the review and scoring of applications that fall into one or more of these categories. You don't need to offer any of these to apply, but if you do, you'll sign a Docusign attestation specifying those services as part of the application review process.

What is a child care desert?

An area where the number of children under six with working parents is at least three times greater than licensed child care capacity. Check if your location qualifies at the Texas Workforce Commission (TWC) Child Care Desert List.

What are non-traditional hours?

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.

Do I need to offer priority services?

No, but offering one or more increases your competitiveness. Applications from providers not offering priority services are still eligible.

What can I purchase with the funds?

Mini-grant funds may be used for allowable expenses 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.

What CANNOT be purchased?

Funding from a mini-grant must NOT be used for the following items:

• 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

• 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

If you are unsure whether an item is allowable, we strongly encourage you to confirm with the Texas FCCN team before making a purchase at minigrant.texasfccn@civstrat.com.

For more information, visit our Spending Guide.

How long do I have to spend the funds?

You must spend your mini-grant funds within six (6) months of signing your award agreement.

All purchases must be made within this six-month period and required receipts and documentation must be submitted according to the reporting timeline outlined upon receipt of your agreement. Funding recipients must maintain financial documentation and receipts for all expenses related to this award for at least 3 years after receipt of funding.

If funds are not used within the required timeframe or are not properly documented, repayment may be required.

How do I apply?

Visit texasfccn.org to start your application. You can also download the application questions in advance to prepare your responses.

What documents do I need?

Required for all applicants:

To complete your Texas Family Child Care Network Start-Up Mini-Grant application, you will need:

• Documents which would prove your address location include a utility bill, rental agreement, property deed, or mortgage bill

• Proof of an active HHSC CCR Application for Registration or Licensure: Copy of your application acceptance letter from Child Care Regulation.

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

• Most recent Business Tax Returns (Two returns must be submitted): Business tax returns (personal returns if business returns are not available) from tax years 2024-2026

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

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

• A detailed cashflow analysis (Template provided)

• Any additional documentation requested to confirm eligibility or permitting progress

If selected for funding, you will also be required to:

• Sign a mini-grant agreement

• Set up direct deposit

• Submit receipts and payment documentation for all purchases

• Complete a Final Report

Applications that are missing required documentation may be delayed or deemed incomplete.

Can I edit my application after submitting?

No, review your application carefully before submitting. If your application qualifies for coaching (either optional or mandatory), you can revise and strengthen specific sections through that process.

Will I receive help with my application?

Yes, we want to help you succeed.  There are two types of coaching 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. This coaching is intended to strengthen your application in these areas. You’ll meet with a business coach one on one for up to three 30-minute coaching sessions to improve your application submission.

• Optional Business Coaching Referral: In some cases, applicants with notably low scores will be 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.

  • Note: Coaching is provided at no cost to you. Participating in coaching does not guarantee funding approval, but failure to participate in mandatory coaching when required will result in application disqualification.

I applied previously but wasn't selected. Can I apply again?

Yes! We encourage you to apply again. Round 1 applications do not carry over automatically — you'll need to submit a brand-new application for Round 2 at texasfccn.org.

I submitted my application and haven't heard back yet. What happens now?

Please double-check your email for any award notifications or messages from your coach — we'll be reaching out directly based on what you need to do next. If you have a question about your status, email minigrant.texasfccn@civstrat.com.

What's different about the application process now?

Applications are now scored on a 100-point system across four categories: Provider Readiness (30 points), Proposed Use of Funds (18 points), Business Resilience (42 points), and a new short Interview (10 points) after you submit your written application. To be considered for funding, you'll need a minimum overall score of 70 points (70%) and at least 70% of the maximum points within each category.

Do I need to submit new documents, or can I reuse what I submitted before?

You'll need to submit a complete new application, including current versions of your required documents (tax returns, background checks, budget/funding request, timeline, proof of liability insurance, etc.). Circumstances and requirements may have changed since your last application, so we ask everyone to submit fresh materials.

Is there a required interview now?

Yes — this is new. After you submit your written application, you'll complete a short interview covering your plan articulation and financial understanding, worth 10 of the 100 points.

I already received a Mini-Grant. Does anything about this update affect me?

No. Your award, six-month spending window, and reporting requirements are unchanged.

Can I apply for additional funding if I was already awarded a Mini-Grant?

No. If you were already awarded funding previously, you are not eligible to apply for additional funding at this time.

Do I still need to meet the same reporting and monitoring requirements?

Yes — nothing has changed here. You must use funds only for allowable expenses, keep documentation for at least 3 years, respond to monitoring requests within 15 calendar days, submit your Final Report, notify Civitas Strategies within 10 days of any eligibility changes, and return any unused funds.

What happens if my application is approved?

Applications must achieve a minimum score of 70 points (70% of the total 100 points), with minimum thresholds met in each category, after evaluation and necessary coaching. If awarded, you'll receive an email with your award agreement, which includes:

• Six-month spending timeline

• Reminder of commitment to participate in Texas Workforce Commission’s Child Care Services Program once licensed or registered

• Recordkeeping requirements

• Monitoring and reporting requirements

What are the reporting requirements?

You must:

• Use funds only for allowable expenses

• Keep all documentation for at least 3 years

• Respond to monitoring requests within 15 calendar days

• Submit required Final Report

• Notify Civitas Strategies within 10 days of any eligibility changes

• Return unused funds

If you were required to complete mandatory coaching, you may also participate in follow-up check-ins to ensure successful implementation of strategies developed during coaching.

For more information, visit our Monitoring Guide.

What if I don't comply with the requirements?

Non-compliance may result in fund recoupment and the prevention of participating in future TWC-funded initiatives.

Where can I get more information?

• General questions: texasfccn@civstrat.com

• Application help: minigrant.texasfccn@civstrat.com

• Resources and coaching: www.texasfccn.org

I have a specific situation. Can you help?

Yes! Contact us at the emails above. We're here to support you through the process.