Building Brighter Futures with Invest PGH’s CRiB Program: A Back-to-School Story

As summer winds down and the excitement builds for a new school year, families across Pittsburgh are prepping for the season. For many families, finding reliable, high-quality childcare is a crucial part of this preparation. At Invest PGH, we understand the role that childcare businesses play in our communities, and we’re committed to supporting these essential services through our Childcare Reinvestment Business (CRiB) program. This program is designed to empower childcare entrepreneurs and to ensure that children in Pittsburgh have access to a nurturing and stimulating environment as they embark on their educational journey.

Empowering Childcare Businesses with CRiB

This back-to-school season, we want to highlight the work being done by childcare providers in our city, and how Invest PGH can help them. The CRiB program offers forgivable loans ranging from $5,000 to $20,000 (or up to 90% of total project costs), with an additional $5,000 available for those entrepreneurs who complete The Business of Childcare program through our partners at Chatham University. These funds can be used for a wide range of essential needs, like working capital, payroll, enrollment scholarships, equipment, software, supplies, leasehold improvements, and even staff education. Our program helps to ensure that businesses receive the support they need not just to survive but to thrive at this critical time of year, and as the calendar pages turn.

Preference is given to minority-led businesses, entities that enroll a significant portion of children who receive subsidies, and applicants who demonstrate a financial need. This focus not only promotes the diversity of our providers but ensures that quality childcare is accessible to more families in Pittsburgh.

Over the three years that Invest PGH has offered the CRiB program, we have achieved remarkable successes. As of June 30, 2024:

• Invest PGH staff has closed 45 loans with 30 of them already forgiven

• 83% of businesses have reported increased enrollment as a direct result of the program

• More than $750,000 has been invested into minority- and women-owned businesses, which make up 84% of the CRiB portfolio

• Nearly 700 jobs have been created or retained

• CRiB has helped to add over 100 additional seats of childcare capacity, allowed for 866 children to receive subsidized care, and all funded businesses remain open and operational

These statistics are just a small slice of the transformative impact of CRiB, helping to make it a cornerstone of childcare business growth in the City of Pittsburgh.

Supporting Childcare Entrepreneurs with Chatham University

To further support childcare businesses, our partnership with Chatham University’s Center for Women’s Entrepreneurship (CWE) through The Business of Childcare program has provided an invaluable resource for providers. This is a free, application-based training program designed for providers in the Greater Pittsburgh region. With financial support from CWE, The Urban Redevelopment Authority of Pittsburgh, PNC Bank, and the Hillman Foundation, this partnership has come together to offer a comprehensive training program.

Participants in The Business of Childcare receive a tailored business curriculum, one-on-one coaching, entrepreneurial education, and a one-year membership to CWE for further immersive training and networking opportunities. This program is an eight-week intensive course designed to prepare entrepreneurs to launch or improve their childcare business, ensuring that they’re ready to meet the demands of a rigorous industry. It also provides a support network that assists providers with access to the financial and educational resources they need to succeed.

The Importance of Supporting Childcare Initiatives

Childcare is an essential service that significantly impacts the well-being and development of children, as well as the economic stability of families. In Pennsylvania, nearly 70% of children under age six have all parents and guardians in the workforce, emphasizing the high demand for and necessity of reliable childcare. In cities like Pittsburgh, quality care is not just a convenience, it’s mandatory.

However, the childcare industry faces numerous challenges. Providers often operate on very thin margins while struggling with staffing shortages. They also face the pressure of maintaining high standards of care. These difficulties are compounded by the fact that many families rely on subsidies to afford childcare, which makes the financial stability of those businesses even more precarious.

Four years after the onset of the COVID-19 pandemic, the number of available childcare seats is still down due to significant business closures and staffing challenges. Even with new facilities opening, Allegheny County has experienced a net loss of nearly 600 childcare seats from pre-pandemic levels, as of the end of last year. This reduction in childcare availability leaves families with fewer options and has forced many parents, particularly women, out of full-time employment. The need for high-quality childcare has never been more apparent.

This underscores the necessity for comprehensive support systems for childcare entrepreneurs and startups in Pittsburgh. While financing is a crucial component, addressing other challenges inherent in childcare is equally important. Providing the resources that help business owners navigate these obstacles is vital for the sustained growth and development of reliable childcare in Pittsburgh.

Invest PGH’s CRiB program plays a crucial role in addressing these challenges by providing much-needed financial support and resources to childcare providers. The success stories and statistics from the program highlight the positive impact that targeted investments can have on the availability and quality of childcare.

Initiatives like CRiB ensure that childcare businesses can continue to thrive, expand their capacity, and offer high-quality care to more children. The work Invest PGH does is vital, and ongoing funding and support for initiatives like these are crucial for sustaining and growing these efforts. By investing in childcare, we are not only supporting local businesses but also helping to build a stronger, more resilient community for the future.

As back-to-school season hits its stride, let’s remember the importance of quality childcare and the profound impact it has on our children, families, and communities. The work we do at Invest PGH, and in partnership with others, can help to ensure that every child can succeed – and every parent has the support they need to provide for their family.