Supplementary Capital Funding (SCF) is available to support eligible licensed child care centres and home child care agencies with one-time, unexpected, and non-discretionary capital costs that cannot be funded through the Cost-Based Funding Allocation (CBFA), existing reserves, or other available funding sources. Please note, SCF is not intended to replace CBFA or reserves, but may be considered where those sources are insufficient.
Major vs. Minor Capital Costs
- Minor capital (repairs and maintenance): Minor repairs and routine maintenance costs are eligible under CBFA, as operators have flexibility within their allocation to support day-to-day operations.
- Major capital (significant repairs or replacements): Major capital costs are not eligible under CBFA. Operators are expected to first utilize reserves, retained earnings, insurance proceeds, or other available funding sources to address these costs.
Eligibility of Costs
SCF may be considered for both minor and major capital costs, where:
- The expense is one-time, unexpected, and non-discretionary
- The cost is required to maintain compliance under the Child Care and Early Years Act (CCEYA)
- There is a health and safety risk to children or staff, and/or
- The issue impacts the centre’s ability to operate (e.g., risk of closure or reduced capacity)
- The operator has demonstrated that the cost cannot be reasonably covered through CBFA (for minor costs), reserves (for major costs), or other available funding sources
Funding Availability
SCF is limited and subject to available funding. Approval is not guaranteed, and projects may be prioritized based on urgency, risk, and impact on service delivery.
Eligibility to Apply
The following centres/agencies are eligible to apply:
- CWELCC-enrolled operators serving children aged 0–12 (for capital costs attributable to the 0–5 age group only)
- Non-CWELCC-enrolled operators providing fee subsidy for children aged 6–12 (for capital costs attributable to the 6–12 age group only)
Application Process
The 2026 SCF application period will open on September 14, 2026. Completed applications must be submitted by October 2, 2026.
To determine eligibility to apply, centres/agencies must first contact their Consultant and provide:
- A description of the issue, including the scope of work and impacted areas
- An explanation of the urgency and impact on operations
- Estimated cost and any information on available CBFA, reserves and other funding sources, including why these funds are not available or insufficient to cover the cost
- Confirmation of whether Start-Up Grant funding was applied for or received for the same project or costs being requested
- Supporting documentation, such as photos, quotes or estimates, where available
If eligible, your Consultant will send you the 2026 SCF application form to complete by October 2, 2026.
SFR Reporting
Costs funded through SCF must be reported in the year the funding is received as “Actual Cost Covered as per Approved One-Time, Unexpected Cost” (2026 SFR cell 29 FIN). These costs are not considered eligible cost for Cost-based Funding and therefore are to be excluded from eligible costs reported under the SFR.
Audited Financial Statements
Expenses funded through SCF are not considered eligible costs for Cost-Based Funding and should therefore be excluded from the CWELCC note disclosure.
