589213 - 2024 Child Care Business Incentives 2.0
Funding Opportunity Details

Future Ready Iowa

Final Application Deadline: Dec 23, 2024 2:00 PM

Description

• Description

  Notice of Funding Opportunity

  State Agency Name: Iowa Department of Workforce Development

  Funding Opportunity Title: 2024 Child Care Business Incentive Grant 2.0

  Announcement Type: Initial

  Assistance Listing Number (formerly CFDA Number): 21.027 American Rescue Plan - Coronavirus State and Local Fiscal Recovery Funds

   

  IMPORTANT DATES

  Deadline: Grant applications are due by Monday, December 23, 2024, at 2:00 p.m. Central Standard Time.

  Application Webinar Date: Iowa Workforce Development (IWD) will host a webinar to provide additional information on Tuesday, December 3, 2024, 11:30A.M.-12:30P.M.

  Application Notification: A Notice of Funding Opportunity will be posted on the following websites:

  www.iowagrants.gov

   

  PROGRAM DESCRIPTION

  Purpose

  The purpose of the 2024 Child Care Business Incentive Grant is to encourage and enable businesses and employer consortiums to build local, State of Iowa licensed, child care centers in the community (not at the expense of existing or available slots in the local area) to address the supply/demand and child age group gaps within their community. This grant program advances one of the top recommendations of the Child Care Task Force - to incentivize additional business engagement in child care.

   

  Funding Priorities

  Priority will be given to applicants that:

  · Projects located in an Iowa county classified as a high Child Care need/demand (see map). Counties with a greater demand will receive additional priority. Applicants should take into account the child care age groups based on the supply/demand gaps within the community.

  · Projects that utilize funding to increase the capacity of the child care center by creating additional child care slots across multiple age groups will receive priority. Applicants requesting additional funding to maintain current slot capacities will not receive priority.

  · Priority will be provided for projects that build onsite child care centers.

  · Projects that have not received previous Child Care Challenge or Investing in Iowa’s Child Care (IICC) funding in either 2021 or 2022. This does not exclude partnering with an existing child care facility that may have already received a Child Care Challenge or Investing in Iowa’s Child Care funding, provided there is direct linkage between providing additional slots to the employer’s employees (additional slots must be new and not previously counted for in prior grant applications).

   

  Program Authority

  IWD’s authority to award these grants may be found in the American Rescue Plan Act of 2021, (H.R.1319), as delegated by Governor Kim Reynolds pursuant to her authority under the same act.

   

  AWARD INFORMATION

  Funding

  Governor Kim Reynolds has reserved funding under the federal American Rescue Plan Act (H.R.1319) of State and Local Fiscal Recovery Funds E.C. 2.11 for this Notice of Funding Opportunity. As a condition of receiving the funds appropriated under this Notice of Funding Announcement (NOFO), the subrecipient shall testify upon the request of any committee or subcommittee of the State of Iowa General Assembly regarding the expenditures of such funds.

  Age-specific, child care slot capacities listed in the subrecipient application are factored into the final awards totals; award totals may be adjusted if slot capacities decrease.

   

  Estimated Award Amount

  The estimated total award amount will be based on the number of eligible applicants, the number of approved awards and the amount of available funding. The total amount of funding previously made available in the 2022 Child Care Business Incentives program was $26.6 million. Individual grant awards will vary in amount as determined by the scope and eligibility of the project.

   

  Projects that propose building a new facility will have a $3 million maximum award amount. Projects that propose expanding, retrofitting, and/or renovating a facility will have a $1.5 million maximum award amount.

  Funding decisions are made as funding is available. IWD is not obligated to provide the maximum grant amount requested.

   

  NOTE: Employers may not use grant funds to provide direct payments to employees, nor can the benefit of providing child care slots be used to offset a reduction in income or other benefits, such as health care insurance, etc. Grant funds will only be provided to the employer for validated construction expenses.

   

  State or Federal Match Requirement

  Projects are required to have a 50/50 private match requirement for all grant funds provided. Validated documentation of private match expenses must be expended and validated by IWD prior to grant funds becoming available. Grant funds are administered as a reimbursement only and no advance payments will be provided. In-kind and volunteer expenses are not eligible under this award.

   

  Project and Award Period

  Pursuant to the American Rescue Plan Act of 2021, (H.R.1319), funds received as part of this program must be entirely spent by June 30, 2026. Any funds not expended for activity completed by June 30, 2026, will be forfeited and IWD will not be obligated to provide additional funding for program completion. Grant award funds must be obligated by the subrecipient (awardee) and under contract by June 30, 2025, which will provide subrecipients an additional twelve months to expend funds. If subrecipients are unable to obligate funds by June 30, 2025, IWD reserves the right to rescind the award agreement at IWD’s discretion. Awarded projects not meeting these timelines may result in a default of the award and all grant funds may be required to be returned to IWD.

   

  The funds for this award are provided by the State and Local Fiscal Recovery Fund (SLFRF), part of the American Rescue Plan. SLFRF requires that all costs incurred for this project must align within the federal award period. The period of performance for this program begins February 1, 2025, and ends June 30, 2026, providing up to 17 months for the award period.

   

  All projects must be completed, licensed as a child care center by the State of Iowa, open for operation and grant funds expended by June 30, 2026. All projects must have approved architectural floor plans by the State of Iowa building code as well as an approved Fire Marshall inspection from the State of Iowa to ensure compliance. Expenses incurred related to this program outside of the period of performances are not eligible for reimbursement under this award.

   

  Type of Award

  Awarded businesses will be considered subrecipients under 2 CFR 200. Grant funds are administered as a reimbursement only and no advance payments will be provided.

   

  Use of Funds

  Provided funds are designed to address various needs as a result of the economic impact of the COVID-19 pandemic.

   

  Grant funds provided to eligible employers can only be used for expenses related to construction to the child care project identified in the approved application. Direct payments to employees for child care expenses are prohibited. Grant funds cannot be used to subsidize the existing child care expenses of employees.

   

  Expenses related to the private match requirement must be expended and fully validated prior to subrecipients becoming eligible to submit reimbursements for grant awarded funds. Validation of both match and award funds will be subject to evidence that funds were expended in compliance with procurement processes outlined in 2 CFR 200.317-200.327 and state procurement policies, and defined by the contract agreement. To be considered, all expenses must be entered and submitted on the IWD expense tracker document and include, at minimum, proof of purchase and proof of payment documentation for validation.

   

  Specific expense categories eligible for grant and private match funds include:

  · Construction Costs – Architecture

  · Construction Costs – HVAC

  · Construction Costs – Electric

  · Construction Costs – Plumbing

  · Construction Costs – Roofing

  · Construction Costs – General

  · Playground and Landscaping

  · General Building Supplies

  · Furniture and Storage

   

  Travel Reimbursements

  Travel is not an eligible expense category under this award. If travel expenses were allowed for reimbursement for this award, all travel expenses incurred by the subrecipient or beneficiary shall follow the guidelines in the Department of Administrative Services – State of Iowa travel policies in effect at the time of the beginning of the award period.