Merrimack County Savings Bank Takes Bold Steps to Address Childcare Crisis in New Hampshire

October 1, 2023 — In an effort to combat the escalating childcare crisis, Merrimack County Savings Bank, affectionately known as The Merrimack, has launched an innovative initiative. The CareWork Loan Program, specifically designed for licensed childcare providers, aims to address the shortage of affordable childcare options in New Hampshire.

The Merrimack, partnered closely with A Place to Grow, offers comprehensive financing solutions coupled with support, fostering a robust ecosystem for optimal childcare center operations. The impetus for this program stemmed from the dire crisis of inadequate childcare as “The lack of affordable childcare is a top concern among the communities we serve,” explained James Gallagher, Senior Vice President and Commercial Loan Officer at The Merrimack.

In conjunction with A Place to Grow, a franchised childcare provider, Merrimack’s strategy keeps childcare business sustainability at the forefront, assisting early childhood educators with loans as well as supportive, management measures targeted at building operational resilience. Jennifer Legere, Founder and Director of A Place to Grow, commented, “Solving the childcare crisis will require a lot of out-of-the-box thinking, as traditional lending programs just don’t work for early childhood educators. By partnering with experts in the industry, like A Place to Grow, The Merrimack is able to support those who would like to transition from worker to owner/entrepreneur.

As many people and institutions increased the burden on childcare providers during the COVID-19 pandemic, the need for childcare centers remains steep, with a highly tumultuous pattern continuing to stretch on. Kathleen Lyons, a local childcare provider in New Hampshire, shared her insights: “The pandemic spotlighted the fragility of our childcare system. Many experienced staff shortages or closures, leaving families with limited options.

The Merrimack’s CareWork Loan Program, tailoring and providing the capital and financial tools needed to empower the development and sustaining of childcare centers,” Gallagher reiterated, “Whether you’re just starting out or looking to expand services, The Merrimack can help provide the capital needed to jumpstart a business, purchase equipment or cover operational expenses. Created with childcare providers in mind, the CareWork Program empowers growth without the fear of not being able to make ends meet.”

For more granular information, examples and trends, take a look at an October 2023 statement put out by National Association of Early Childhood Educators (NAECY) to better illustrate childcare working conditions in today’s healthcare drama unfolding across the U.S:

The persistent and escalating crisis regarding childcare is compounding with escalating needs for parents to be able to afford quality childcare services for their young children while continuing to maintain careers.” Further, recent policy documents published by NAEH indicate profound rises in the quantity of homes reconditioned or extended as childcare facilities during 2022-2023 period in response to CareWork-like programs.

— NAECY, October 2023

Some critics argue that financial programs alone may not eradicate the childcare crisis. There certainly may be still much work to do to completely render this problem solved. For instance, critics have proposed that social policy may need changes to address additional issues such as teacher pay for childcare educators. Further problems may stem from the ongoing effects of COVID-19, including labor shortages at the state and local levels. State officials like State senator Margaret Brown urged, “While financial support such as CareWork is great, additional improvements, including better coverage provision, are needed to truly reduce the gravity of the childcare crisis”, Brown reiterated.

There is considerable resistance to government involvement from social perspectives concerned with personal autonomy and small business development, in context to citing practices in sectors such as the taxi industry, effects of labor laws on gig economy, and existing government-sponsored social welfare provisions. Consequently, critics might push further for improvements to local laws and state policies.