RCAC loan bridges day care center funding gap

July 27, 2005

West Sacramento, Calif. — State budget delays that could have proved disastrous for one Monterey County day care center serving low-income families instead had no effect, thanks to a $100,000 loan from Rural Community Assistance Corporation (RCAC).

The King City Child Development Center (KCCDC), a nonprofit organization providing child care, child development, preschool and after school programs to working families — including many agricultural worker families — operates two facilities that serve nearly 150 Monterey County children. Although the Center was not in jeopardy of losing its California Department of Education funding, traditional budget glitches coupled with a customary four to six-week post-budget funding delay could have been devastating to the organization and the families it supports.

The RCAC loan, however, will allow KCCDC to transition smoothly to a new fiscal year without fear of an interruption in its childcare services.

“RCAC is very pleased to be able to help support, through our Loan Fund, the King City Child Development Center,” said Mike Flanagan, director of RCAC’s Loan Fund. “The Center offers wonderful help to the community and we’re happy to have a part in maintaining those services.”

This is the second year in which an RCAC loan has helped the Center bridge financing to maintain operations pending receipt of state contract funds.

“Our families don’t realize what goes on to keep the Center functioning, they only know that their children are happy and eager to come here while they work,” said Kathy Walsh, KCCDC program director. “We try to provide a sense of security for both children and parents who struggle with the complications of parenthood. We were very pleased to work with RCAC again this year.”

Headquartered in West Sacramento, California, and serving 13 western states, RCAC is a nonprofit agency providing technical assistance and training to rural communities seeking to develop a wide range of local services including, community facilities, affordable housing and water treatment facilities. The organization operates a loan fund with $50 million in lending capital that provides low-interest loans and grants to further rural communities’ goals. RCAC maintains field offices in West Sacramento, San Marcos and Ukiah.

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