Grants for Opening a Daycare in Ontario (2025–2026): What Funding Is Actually Available

Grants for Opening a Daycare in Ontario (2025–2026): What Funding Is Actually Available

If you’re planning to open a licensed daycare in Ontario, the biggest question is usually funding. The good news is that Ontario’s main child care expansion funding is active through 2026, with real money available for new spaces — but only if your project fits your region’s growth plan. In 2025 alone, Ontario committed $366.5 million toward start-up grants to help create 86,000 new licensed spaces by the end of 2026.

This guide focuses on grants for opening a daycare in Ontario, not loans or tax credits. It also reflects how funding actually works on the ground — through your municipality, not a single provincial application.

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The Main Grants for Opening a Daycare in Ontario

1. CWELCC Start-Up Grants (Primary Funding Source)

The Canada-wide Early Learning and Child Care (CWELCC) Start-Up Grant is the core funding program for new daycare operators in Ontario.

Who it’s for

• New or expanding licensed child care operators
• Centre-based and licensed home child care
• Projects approved under Directed Growth in your region

How much funding you can get

• Up to $350,000 per 20 new centre-based spaces
• $1,200 per home child care space
• Maximum $7,200 per home child care provider

What it can cover

• Leasehold improvements and renovations
• Equipment and furnishings
• One-time start-up costs tied to creating new spaces

How to apply You do not apply directly to the province. Applications go through your local:

• CMSM (Consolidated Municipal Service Manager), or
• DSSAB (District Social Services Administration Board)

Each region decides:

• Whether it needs more spaces
• What age groups are prioritized
• Which applications get approved

Tip: Tools like GrantHub’s eligibility matcher can help you filter programs by province, industry, and business type in seconds — especially helpful when funding is handled locally.

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2. ELCC Infrastructure Fund (Capital Funding)

Ontario also offers capital funding through the Early Learning and Child Care (ELCC) Infrastructure Fund. This is separate from start-up operating grants.

Key details

• Focused on creating new licensed spaces
• Capital-only (builds, renovations, major retrofits)
• Not-for-profit operators are the main eligible group
• Extended through December 2026 under the CWELCC one-year extension

This fund is commonly stacked with CWELCC Start-Up Grants when a project involves major construction or facility upgrades.

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3. CWELCC Operating Funding (Not a Start-Up Grant, But Critical)

While not a lump-sum grant, CWELCC operating funding is essential to your business plan.

How it works

• Ontario moved to cost-based funding for CWELCC operators
• Funding is calculated using a provincial estimator
• Final amounts are approved by your CMSM/DSSAB

This funding helps cover:

• Staffing costs
• Day-to-day operations
• Reduced parent fees under the $10-a-day system

You can use Ontario’s official 2025–2026 cost-based funding estimator to model expected support, but approvals remain regional.

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How Local Approval Really Works in Ontario

One of the most misunderstood parts of grants for opening a daycare in Ontario is that funding depends on where you open, not just what you open.

Your municipality decides:

• If new spaces are needed
• Which neighbourhoods qualify
• Whether infants, toddlers, or preschool spaces are prioritized

For example:

• Toronto, Peel, York, and Ottawa each run separate intakes
• Some regions only fund not-for-profit centres
• Others prioritize expansions over brand-new operators

This is why two identical daycare projects can get very different answers in different cities.

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Common Mistakes to Avoid

1. Assuming there is a province-wide application There isn’t. Every CWELCC start-up application goes through your local service manager.

2. Signing a lease before funding approval Many CMSMs require proof that funding is approved before major financial commitments.

3. Ignoring Directed Growth priorities If your region needs toddler spaces and you propose preschool-only care, funding is unlikely.

4. Confusing operating funding with start-up grants CWELCC operating funding helps cash flow but won’t pay for renovations or equipment.

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Frequently Asked Questions

Q: Can I get grants for opening a private daycare in Ontario?
Yes, but approval depends on your municipality. Some regions fund private operators, while others restrict start-up grants to not-for-profits.

Q: Is there a maximum grant amount for daycare start-ups?
For centre-based care, funding can reach $350,000 per 20 spaces, depending on eligible costs and local approval.

Q: Are home daycares eligible for start-up grants?
Licensed home child care can receive $1,200 per space, up to $7,200 per provider under CWELCC.

Q: Do I need to join CWELCC to get funding?
Yes. CWELCC participation is mandatory for start-up and operating funding tied to reduced parent fees.

Q: When do applications open for 2026?
There is no single date. CMSMs open intakes at different times throughout the year based on local planning cycles.

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Next Steps

Opening a daycare in Ontario is less about finding a single grant and more about aligning your project with your region’s child care plan. The right funding can cover hundreds of thousands in start-up costs — but only if your location, licence type, and timing line up.

GrantHub tracks 2,500+ active grant programs across Canada — including municipal CWELCC intakes — so you can check which ones match your business profile and region. For broader context, you may also want to explore Funding Opportunities in Ontario or Money from the Ontario Government in 2025 as you plan your launch.