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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

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?

REQUEST CONSULTING

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

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.

Kutztown University
de Francesco Building, Suite 120
College Blvd
Kutztown, PA 19530

To request consulting services, click below.

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Helping businesses start, grow, and prosper.

Pennsylvania Small Business Development Centers are funded in part through a cooperative agreement with the U.S. Small Business Administration, by the Commonwealth of Pennsylvania through the Department of Community & Economic Development, through support from Service Center host institutions, and by other sources of state and federal funding. Full disclosures available at pasbdc.org/funding-sources/. All services are extended on a non-discriminatory basis to all legal residents and citizens of the US. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA.

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