The Child Care Loan Fund Act establishes a no-cost, zero percent interest loan program administered by the New Jersey Economic Development Authority (EDA) to support licensed child care centers and registered family day care homes. The program aims to increase the availability of child care slots statewide by providing financing for qualifying capital expenses, which include the renovation or expansion of existing facilities or the construction of new ones. The bill prohibits the use of loan funds for operating expenses and requires loan recipients to repay the loans within five years, secured by collateral, with a maximum equity contribution of five percent.

To facilitate the implementation of the loan program, the bill appropriates $10 million from the General Fund to the newly established Child Care Loan Fund. The EDA, in collaboration with the Department of Children and Families and the Department of Human Services, will review loan applications and provide technical assistance to recipients, including support for meeting licensing requirements and attracting qualified staff. The provisions of the act will take effect on the first day of the third month following its enactment.