The Complete Guide to CWELCC Funding in Peel Region (2025 Edition)
If you own a child care center or are planning to open one in Brampton, Mississauga, or Caledon, you have likely heard about the Canada-Wide Early Learning and Child Care (CWELCC) system. Often called the "$10-a-day" program, it is the most significant change to the child care industry in a generation.
However, navigating the funding model can be confusing. As of January 1, 2025, the rules have shifted from a "revenue replacement" model to a "cost-based" model.
This guide will walk you through exactly how the funding works, who is eligible, and how to successfully navigate the build-out process in the Peel Region.
Part 1: Are You Eligible?
Before looking at the financials, you must determine if your program qualifies. The government is strict about where this funding goes.
General Eligibility
To qualify for CWELCC in Ontario, you must meet four core criteria:
Valid License: You must hold a current license to operate a child care program in Ontario. Unlicensed programs are not eligible.
Age Group: Your program must primarily serve children under the age of six (or children turning six before June 30th of that year).
The Agreement: You must sign a Service Agreement with the Region of Peel (your local service system manager). You cannot simply "opt-in" without this contract.
Compliance: You must be in full compliance with the Child Care and Early Years Act, 2014 (CCEYA).
Special Considerations
New Start-Ups: If you are opening a new center, your location must align with Peel Region’s "Growth Plan." Priority is currently given to neighborhoods that desperately need spaces for infants and toddlers.
Home Child Care Providers: If you run a daycare from your home, you cannot apply directly. You must register with a licensed Home Child Care Agency.
Excluded Programs: Generally, before-and-after school programs for children aged 6+ and school-based kindergarten programs are not eligible for CWELCC start-up grants.
Part 2: How the Funding Works (The New Cost-Based Model)
In the past, the government simply reimbursed you for the revenue you lost when you lowered fees. That system is gone.
As of 2025, Peel Region uses a Cost-Based Approach. This means the government funds you based on what it should cost to run a center of your size, rather than what you used to charge parents.
The 3 Pillars of Your Funding
Your "Program Cost Allocation" is made up of three parts:
Benchmark Allocation: The Region calculates the typical costs for staffing, rent, utilities, and food for a center of your size. Note: This includes a Geographic Adjustment Factor for the higher costs of operating in the GTA.
Growth Top-Up: If you are creating new approved spaces, you receive an extra percentage of funding. This recognizes that expanding businesses have inefficiencies and higher initial costs.
Amount in Lieu of Profit/Surplus: Since you cannot raise fees to create a profit, the formula includes a specific allowance for this.
For Commercial Centers: This is your profit margin.
For Non-Profits: This is your surplus.
Key Benefit: You can reinvest this, save it, or use it as you see fit.
The Start-Up Grant
On top of operating funding, you may be eligible for a Start-Up Grant to cover:
Leasehold improvements (renovations).
Equipment (cribs, changing tables, appliances).
Play materials and furniture.
Part 3: The Math (Calculating Your Funding)
While the full calculation is complex, the basic logic is:
(Benchmark Costs + Growth Top-Up + Profit Allowance) – Parent Fees = Government Funding
Because the funding relies on variables like your floor space, licensed capacity, and staffing ratios, Ontario has created a tool to help you estimate your numbers.
👉 https://www.ontario.ca/cost-based-child-care-funding-estimator/
Part 4: Step-by-Step Application Process in Peel
Applying for CWELCC in Peel Region is a formal process. It is not automatic.
Step 1: Research and Verify
Check Local Needs: Look at the Peel Region expansion priorities. Are you planning to open in a neighborhood that needs care, or is it already saturated?
Check Licensing: Ensure your status in the Child Care Licensing System (CCLS) is active. If applying for a new license, flag your intention to join CWELCC inside the application.
Step 2: Complete the Application
Get the Form: Download the CWELCC Expansion Application from the Peel Region GovGrants portal.
Financial Viability: You must provide a budget proving you can manage cash flow until funding arrives.
Be Thorough: Incomplete applications are often rejected immediately.
Step 3: Review and Decision
The Review: Peel Region reviews applications based on priority (Infant/Toddler spaces in high-need areas are first).
The Agreement: If approved, you will sign a Funding Agreement.
Part 5: The "Catch" (Your Obligations)
Receiving this funding comes with strict rules:
Fee Cap: You must charge parents the reduced rate (capped at roughly $22/day for base fees).
Wage Floor: You must pay your Registered Early Childhood Educators (RECEs) at least the provincial Wage Floor.
Audits: You must submit audited financial statements annually to prove the money was spent on eligible operating costs.
⚠️ CRITICAL NOTE FOR 2025:
For Commercial (For-Profit) Providers: The window for new commercial applications is restricted. Peel Region limits the ratio of for-profit centers. Always check the status before signing a lease.
Part 6: The HKC Advantage – Why Construction Matters
Building a child care center is not like building a standard commercial unit. It requires a specific understanding of how children move, play, and interact with their environment.
When you work with a contractor who understands the Child Care sector, you de-risk your project. Here is how HKC Construction actively supports your success:
1. We Bridge the Gap Between "Code" and "Licensing"
A standard builder follows the Ontario Building Code. But a Child Care facility must also pass the Ministry of Education's licensing inspection (O. Reg. 137/15). Sometimes, these requirements differ. We know the nuances—like specific window heights for supervision or finger-pinch protection on doors—ensuring you pass both inspections the first time.
2. Speed to Market
In the child care business, every week of construction delay is a week of lost enrollment revenue. Because we anticipate Ministry requirements, we avoid the "re-work" delays that plague inexperienced builders. We get you to the "Occupancy Permit" stage faster.
3. Material Durability & Safety
We don't just build walls; we build environments. We guide you toward materials that are non-toxic, easy to sanitize (crucial for health checks), and durable enough to withstand daily wear and tear.
The HKC Scope-of-Work Compliance Checklist
We ensure your facility is ready for licensing by managing the physical requirements while you handle the paperwork. Here is the framework we use to ensure your facility is inspection-ready:
Zoning Verification: Confirming the unit is zoned for Daycare use before hammering a single nail.
HVAC & Air Quality: Ensuring ventilation meets the specific air change requirements for child care spaces.
Plumbing Standards: Installation of toddler-height toilets and sinks at the ratio required by O. Reg. 137/15.
Acoustic Control: Installing proper baffling to manage noise levels in playrooms.
Safety Glazing: Ensuring all glass (windows/mirrors) is tempered or safety-rated for impact.
Accessibility: Full compliance with AODA standards for ramps, washrooms, and doorways.
Security: Access control systems for secure entry/exit of parents and staff.
Are you ready to build a facility that qualifies for funding and delights parents?
Contact HKC Construction today for a consultation on your Child Care project.
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From Ministry licensing requirements to child-safe materials, we understand the nuances of building educational spaces. Let's discuss your vision.
