A.The "child care facility revolving loan fund" is created in the authority to provide low-interest, long-term loans to providers to make health and safety improvements in their facilities, expand their facilities, create new facilities and for operating capital. The fund shall consist of appropriations, gifts, grants and donations to the fund, which shall be invested as provided in the New Mexico Finance Authority Act [Chapter 6, Article 21 NMSA 1978]. Money in the fund shall not revert. Administrative costs of the authority may be paid from the fund.
B.Money in the fund shall be used to make loans to providers or to contract for services with providers that demonstrate the need for operating capital or to make health and safety improvements, including space expansion, in order to maint
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A. The "child care facility revolving loan fund" is created in the authority to provide low-interest, long-term loans to providers to make health and safety improvements in their facilities, expand their facilities, create new facilities and for operating capital. The fund shall consist of appropriations, gifts, grants and donations to the fund, which shall be invested as provided in the New Mexico Finance Authority Act [Chapter 6, Article 21 NMSA 1978]. Money in the fund shall not revert. Administrative costs of the authority may be paid from the fund. B. Money in the fund shall be used to make loans to providers or to contract for services with providers that demonstrate the need for operating capital or to make health and safety improvements, including space expansion, in order to maintain an adequate and appropriate environment for their clients; to providers seeking to expand child care facilities; and to providers seeking to create new child care facilities, including for employers to create child care facilities for the employer's employees. Loans from the fund are to be made at an interest rate greater than zero percent for a term that does not exceed the useful life of the project being financed. C. The department and the authority may contract for services with an eligible provider to provide child care for child care assistance eligible families as reasonably adequate legal consideration for money from the fund; provided that within a period of time prescribed in the contract of disbursement of the loan, the provider: (1) is located in a designated child care desert; (2) provides care during non-traditional hours; (3) demonstrates that at least fifty percent of the children that the provider or employer serves are recipients of a child care assistance program expanded or created by the provider; (4) demonstrates that the number of children served by the provider increased by at least ten percent; and (5) satisfies other qualifications as determined by the department and the authority. D. No more than twenty percent of the fund may be loaned for a single provider in a single project. The department shall give priority for loans to providers that serve proportionately high numbers of state-subsidized clients and low-income families that are located in communities with high poverty rates and that provide nontraditional-hour child care. E. The department, in conjunction with the authority, shall adopt rules to administer and implement the Child Care Facility Loan Act, including providing for eligibility requirements and for the selection of applicants based on department-defined priority. The rules shall become effective when filed in accordance with the State Rules Act [Chapter 14, Article 4 NMSA 1978].