Child Care Business
Empowering Pennsylvania’s Child Care Entrepreneurs
Child care plays a vital role in Pennsylvania’s communities, supporting working families, strengthening businesses, and contributing to overall economic growth. At the same time, operating a child care business comes with unique challenges, from navigating regulations to managing staffing, finances, and day-to-day operations.
The Pennsylvania Small Business Development Centers (SBDC) is here to support child care entrepreneurs and providers by offering guidance, resources, and connections that help you make informed decisions and build a sustainable business.
- Start a Child Care Business
- Grow Capacity
- Improve Quality
- Find Funding
- Hire & Retain Staff
Child Care Business Success Stories & Testimonials

Saint Francis University SBDC
Top-Notch Prep Academy
Michele Fochtman, a lifelong educator with 19 years of teaching experience and a Master’s in Education and Principal Certification, had long nurtured a passion for early childhood development. After recognizing a growing need for child care in Somerset County, she saw the opportunity to transform a former elementary school into a vibrant early learning center. Working closely with Consultant Terry Anderson, Michele developed a comprehensive business plan and financial projections. With a solid roadmap and strategic guidance, she secured a $100,000 commercial loan from Somerset Trust and invested her own funds to begin renovations on the building. Read Michele’s Full Story

Temple University SBDC
Little Experts Academy
“Working with Temple University’s SBDC program has been a game-changer. Mark Tucker has gone up and beyond to help my business get where it needs to be. Their team is supportive, knowledgeable, and truly cares. They helped me turn ideas into action, answered every question with patience, and guided me through challenges. I felt heard, supported, and empowered. I highly recommend them to anyone starting or growing a business.” —Yaniris Dilone, Owner

University of Pittsburgh SBDC
Explore Your Senses
Casadi Seman, a passionate educator with a heart for inclusive learning, dreamed of creating a unique space where children of all abilities could play, explore, and grow through sensory experiences. The SBDC team guided Casadi through the entire process of starting a business in Pennsylvania, ensuring compliance and streamlining operations. They also assisted with marketing strategies, including search engine optimization (SEO) for her website.
57% OF PENNSYLVANIANS LIVE IN A CHILD CARE DESERT, DEFINED AS AN AREA WITH EITHER NO CHILD CARE PROVIDERS OR MORE THAN THREE TIMES AS MANY CHILDREN AS LICENSED CHILD CARE SLOTS.
Source: Pennsylvania Department of Human Services, 2026; NAEYC,2026

The Center of Exploration (CoE) for Child Care
The Shippensburg University SBDC serves as the Center of Exploration on Child Care for the PASBDC network. This Center acts as a centralized resource for subject-matter expertise and technical assistance, ensuring that business consultants statewide have access to practical industry knowledge.
Available Services and Expertise
- Startup and Acquisition Consulting: Specialist support is available for business plan development, financial projections, and market research to determine the feasibility of starting, expanding, or acquiring a child care center.
- Operational Guidance: Business owners can access advising on cash flow management, business formation, and long-term sustainability.
- Industry-Specific Training: The CoE organizes statewide webinars featuring experts such as bankers experienced in child care financing, specialists in Keystone STARS quality standards, and authorities on regulatory requirements for in-home centers.
- Workforce Development Pipeline: Through a partnership with the Shippensburg University Office of Workforce Development, the center provides information on credentials such as the online Early Childhood Director Credential and the Tuition-Free Child Development Associate (CDA) Credential.
Ready to grow your child care business?
Resources for Child Care Providers and Businesses
Essential Child Care Provider Resources
The following essential tools help child care businesses manage daily operations and stay compliant with Pennsylvania requirements:
- PA Provider Self-Service: An essential tool for providers to manage their profiles, submit documentation, and interact with state agencies.
- DHS COMPASS – Child Care Benefits: The primary portal for Pennsylvanians to apply for and manage social service benefits, including child care works subsidies.
- PELICAN (PA Early Learning Keys to Net): Pennsylvania’s integrated data system for early learning. Use this resource to manage licensing information, Keystone STARS participation, and professional development records for your staff.
Child Care Business Resources
Workforce & Professional Development
- PACCA (Pennsylvania Child Care Association): As the primary advocacy body for child care providers in PA, PACCA keeps small businesses informed on legislative changes and provides a collective voice to influence childcare policy.
- T.E.A.C.H. Early Childhood® Pennsylvania Scholarship: This program drastically reduces staff turnover by funding degrees and credentials for provider employees, allowing businesses to upskill staff with minimal out-of-pocket costs.
- PA Department of Health Child Care Forms: Utilizing these standardized templates ensures your business remains compliant with state health mandates and labor laws, reducing the risk of legal or safety oversights.
Quality Improvement & Licensing
- Keystone STARS: Moving up the STAR tiers increases a child care business’s professional reputation and, more importantly, unlocks higher subsidy reimbursement rates to boost their bottom line.
- Early Learning Resource Centers (ELRC): ELRCs act as local business partners, managing the “Child Care Works” subsidies that ensure child care providers get paid for serving low-income families. Providing a “Find Your ELRC” tool on their website to assist parents in identifying support systems to could assist in covering their childcare.
- Provider Certification & Inspection Review: Reviewing common compliance citations helps providers “self-audit,” increasing their understanding and ability to pass state inspections and avoid costly fines or license suspensions.
- Curriculum and Child Assessment Resources: Aligning your program with state standards ensures high-quality instruction, which is a requirement for advancing through the Keystone STARS levels. It is also important to review PA Early Learning Standards by age group.
Financial & Grant Tools
- Financial Pro Forma Templates: A downloadable Excel tool specifically for child care—pre-filled with industry categories like “Food Program Reimbursements” and “Staff-to-Child Ratio Labor Costs.”
- CACFP (Child and Adult Care Food Program): Understand how providers can get federally reimbursed for serving nutritious meals, which is a major hidden revenue stream for centers.
- Child Care Grant Information: Stay updated on state funding and grants that provide “infusions” of capital that can be used for facility repairs, staff bonuses, and more.
Marketing & Growth Tools
- Google Business Profile Guide: Optimizing your profile ensures your child care center appears at the top of local “Child care near me” searches, driving organic leads without a paid ad budget..
- Parent Handbook: Having a parent handbook is critical for protecting your business and maintaining compliance. Work with an SBDC business consultant to determine what should be included in your parent handbook.
- Digital Marketing Center of Excellence: Work with our Digital Marketing CoE to improve your child care business’s digital presence. Digital Marketing CoE at Pitt and Duquesne SBDC can help with technical SEO reports, social media audits, emerging digital tools, and hands-on learning.
- Waitlist Management Tips: Utilize CRM software (like Brightwheel or Procare) to manage enrollment pipelines.
Financial Resources and Tax Incentives for all Businesses
Providing child care resources is a proven strategy for reducing turnover and increasing workforce productivity. To make these benefits sustainable, small business owners can utilize specific economic frameworks and tax incentives designed to offset costs.
- Early Learning Investment Commission (ELIC): The ELIC serves as a bridge between the public and private sectors. By emphasizing the “business case” for early childhood investment, the commission helps owners identify high-impact partnerships that improve local economic outcomes and stabilize the labor pool.
- Federal and State Child Care Tax Credits: A primary tool for cost recovery, these credits are designed to reduce an organization’s overall tax liability. By leveraging federal incentives (such as the Credit for Employer-Provided Child Care Facilities and Services) alongside state-level programs, businesses can significantly lower the net cost of offering child care support to their staff.