Calgary, June 5, 2025 – Childcare business owners risk loss of personal assets, including homes due to poor communication from the Alberta government. The Canadian Federation of Independent Business (CFIB)’s members say that Alberta’s administration of the for-profit space cap under the Canada-wide Early Learning and Child Care (CWELCC) program has blindsided childcare businesses who expected to receive grants.
An emailed letter to applicants from the Ministry of Education and Childcare on May 15 indicated that for-profit licensing applicants in the queue to receive $10/day grant funding under the CWELCC program would be cut off from the program with no notice. CFIB has heard from members that prior to this, the Ministry of Education and Childcare only communicated that all for-profit spaces “could be fully allocated by summer of 2025". The lack of transparency on the for-profit space cap limitations has left many businesses involved in the program incapable of pivoting or mitigating their investment risks this late in their business plan. Many business owners began construction on new spaces to support Albertan families with childcare only to be left in limbo.
“This announcement surprised many small business owners in the childcare space who had planned to take advantage of the $10/day childcare grant, and priced it into their business model,” stated Kayode Southwood, CFIB’s Senior Policy Analyst for Alberta. “Our members are telling us that the Alberta government is leaving their businesses on the hook for upwards of a million dollars in personal losses—including their homes—as many childcare operators have personal loan guarantees.”
Small businesses currently caught in this situation have experienced stalled applications, unresponsive communication from licensing authorities, and substantial uncertainty. Weeks before the program cutoff, CFIB’s members said it was business as usual in their meetings with the Alberta government, misleading them into continuing to make investments that would never materialize.
“It is critical that childcare operators interested in investing and taking entrepreneurial risks for Alberta’s economic benefit be provided with clear, timely communication from the government on an integral part of their business model,” added Southwood. “While Alberta’s long-term small business confidence remains near record lows, our members are calling on the Government of Alberta to address their communications failures and outline a path forward for childcare businesses in the province.”
Kayode Southwood, CFIB
403-489-7595
kayode.southwood@cfib.ca
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 100,000 members (10,000 in Alberta) across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.