Supplementary Capital Funding

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

Centres/agencies must first contact their District Consultant (DC) to determine eligibility to apply for Supplementary Capital Funding (SCF). To support this review, operators are required to email the following information to their DC:

  • Description of the issue, including scope of work and impacted areas
  • Explanation of urgency and impact on operations
  • Supporting documentation (e.g., photos, quotes, estimates), where available

If deemed eligible to apply, the DC will provide access to the SCF application form. The deadline to submit a completed application is November 30, 2025 (to be updated for 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” (2025 SFR in 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.

Updated: April 30, 2026