State to offer $100,000 loans to rapidly expand child care centers to meet universal care deadline

By NM Political Report

New Mexico officials outlined plans Wednesday to expand child care access and improve program quality as the state prepares to implement universal child care beginning Nov. 1.
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The Early Childhood Education and Care Advisory Council discussed several initiatives aimed at strengthening the state’s child care system during its meeting in Silver City, including a newly launched low-interest revolving loan fund to help providers expand facilities.

“Universal child care is about making good on New Mexico’s commitment to families and educators,” said Kendal Chavez, deputy secretary of the Early Childhood Education and Care Department.

Gov. Michelle Lujan Grisham has prioritized transforming early childhood education in New Mexico. Chavez said the universal child care expansion represents the completion of a promise that will benefit multiple generations.

The Child Care Facility Loan Fund provides low-interest, long-term loans starting at $100,000 to help providers build and improve child care facilities. The fund is a partnership between the Early Childhood Education and Care Department and the New Mexico Finance Authority.

Loans carry a fixed interest rate of 2% annually and can be used for projects including construction, renovation, equipment purchases and operating capital. The program prioritizes projects in underserved communities, particularly those serving infants and toddlers.

Council members also received updates on the redesign of FOCUS, New Mexico’s quality rating and improvement system for early childhood programs. Department leadership noted the FOCUS redesign operates on an independent timeline from the universal child care rollout.

“New Mexico is making significant investments in building a robust future for early childhood education,” said Dr. Cindy Martinez, an advisory council member and director of the New Mexico Center of Excellence for Early Childhood Education.
Martinez said the initiatives, including increased reimbursement rates and facility improvements, aim to create an environment where providers can flourish and educators can develop professionally.

The council’s agenda also included regional highlights from community partnerships, updates on data collection efforts and a report on home visiting program standards.

Eligible applicants include child care providers, employers who want to provide employee child care, and entities owned or managed by tribal governments. Projects in high-poverty areas or those offering non-traditional hours receive priority consideration.

Some borrowers may qualify for partial loan forgiveness through a “contracts for services” program that reduces loan payments in exchange for expanding services by at least 10%.

The advisory council will meet next on Dec. 10 from 1 to 4 p.m. in Albuquerque.
The council includes state and local education leaders, early childhood professionals, service providers, tribal representatives and parent representatives. It engages stakeholders to help create a comprehensive prenatal-to-5 system for New Mexico children and families.

The advisory council fulfills a federal requirement for states to establish a state early childhood council.