ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Community Banking

Pandemic Spotlights Critical Links Between Childcare and the Economy

March 5, 2021
Reading Time: 3 mins read
Pandemic Spotlights Critical Links Between Childcare and the Economy

Photo by BBC Creative on Unsplash

By Corey Carlisle

Throughout the COVID-19 pandemic, we’ve experienced or empathized with parents trying to work while caring for young children. One study estimates that, on average, a working parent lost around eight hours or one full workday each week—and more for low-income workers and people of color—during the pandemic because of their childcare duties. To ensure essential workers with young children stay engaged in the workforce and support this important backbone of the economy, many banks have stepped up their support for and collaboration with community-based nonprofits offering funding and supportive services to childcare providers.

Approximately one-third of the U.S. workforce consists of working parents. Millions rely on home-based providers to care for their children. Yet, much of this industry is comprised of small businesses—many very small and very often run by women—that are on the brink of collapse and may not reopen. Adding to the multitude of challenges in operating these businesses, childcare facilities in many states are or were operating under reduced capacity and social distancing orders. According to the National Association for the Education of Young Children, only around 25 percent of the childcare market received a Paycheck Protection Program loan during the first round. With millions of families relying on childcare as critical connective tissue for families and communities, the health and vitality of this sector will do much to ensure Americans can quickly return to work and to support our nation’s overall economic recovery.

Abilene, Texas-based First Financial Bancshares and Scott Dueser, its chairman, president and CEO, knew the role of childcare providers in ensuring that the economy kept going, even in the midst of the school shutdowns that were just beginning and which continue today in many parts of the country. First Financial called on community leaders and formulated a sustainable plan that drew local nonprofits.

The United Way of Abilene stepped up to the plate and partnered with YMCA, Boys and Girls Club, and the Alliance for Women and Children, among others, with emergency approval to use nearly $25,000 per week for free daycare for essential workers from a fund originally designated to assist local nonprofits and service providers. First Financial remains one of the United Way of Abilene’s largest corporate campaigns.

“First Financial will always be committed to our community partners who keep our local economies Texas Strong, especially during the pandemic,” says Dueser. “Creating a strong bond with our early education organizations and partners organized and funded by the United Way of Abilene to ensure essential workers have access to excellent childcare is so important to keep our employees working and the economy going.”

Meanwhile, the Low Income Investment Fund—one of the nation’s leading community development financial institutions, supported in large part by grants and other funding from banks—supports sustainable, community-based systems for financing and developing childcare facilities through capital investments and capacity building. LIIF provides grant and loan capital for facilities development and improvement. In combination with these loans, LIIF delivers specialized business support and development, including training and technical assistance on facilities design, development, financing and operations.

Since the start of the pandemic, LIIF has provided grants, technical assistance and PPP funds worth over $23 million to nearly 400 family childcare business owners. These funds helped pay for expenses like rent, mortgage, payroll, cleaning supplies and safety equipment—ultimately helping an estimated 700 providers stay open or reopen their businesses. In November 2020, thanks to a grant provided by LIIF to close a fundraising gap after another funder pulled out as a result of COVID-19, a new Kidspace center that offers free care and education to families in need was opened in Washington, D.C.

The pandemic has underscored the key role childcare plays in the economy—both in making sure essential workers with young children can get to their jobs and in helping parents stay engaged in the workforce so they can support economic recovery.

Corey Carlisle is executive director of the ABA Foundation.

ADVERTISEMENT
Tags: Community developmentCommunity engagementCoronavirusSBA Paycheck Protection Program
ShareTweetPin

Related Posts

Research finds finance industry leads in corporate social responsibility

Research finds finance industry leads in corporate social responsibility

Community Banking
June 27, 2025

Financial institutions are at the forefront in volunteering engagement at 22.2%, nearly a 50% increase from 2023.

OCC seeks comment on digitalization challenges for community banks

ABA offers recommendations to boost community bank digitalization

Community Banking
June 26, 2025

The OCC should proactively support responsible community bank digitalization through transparency, information sharing and meaningful dialogue with stakeholders, ABA said.

ABA faults banking regulators for confusing CRA rule rollout

Regulators release 2025 list of distressed, underserved communities

Community Banking
June 25, 2025

Federal banking regulators made available the 2025 list of distressed or underserved nonmetropolitan middle-income geographies.

OCC sees need for regulatory reform in bank merger process

First Financial in Ohio to buy Westfield Bancorp

Community Banking
June 24, 2025

First Financial Bancorp in Cincinnati has agreed to buy Westfield Bancorp in Westfield Center, Ohio.

Podcast: Staying close to clients amid tariff-driven volatility

Podcast: Staying close to clients amid tariff-driven volatility

ABA Banking Journal Podcast
June 18, 2025

Amid tariff-related volatility, how are small and midsize businesses and the banks that serve them faring?

FDIC, OCC tighten policy considerations for bank merger applications

Report: Bank merger activity continues at steady pace

Community Banking
June 18, 2025

While there was a temporary stall in bank merger activity in early 2025 because of the economic fallout of tariffs and other Trump administration policies, overall quarterly deal announcements have held steady, according to a new analysis by...

NEWSBYTES

ABA asks IRS to delay new reporting requirement

June 30, 2025

ABA supports climate disclosure exclusions, warns of alternative disclosures

June 30, 2025

OCC report: Banking system sound, key risks highlighted

June 30, 2025

SPONSORED CONTENT

AI Compliance and Regulation: What Financial Institutions Need to Know

Unlocking Deposit Growth: How Financial Institutions Can Activate Data for Precision Cross-Sell

June 1, 2025
Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025
Six Payments Trends Driving the Future of Transactions

Six Payments Trends Driving the Future of Transactions

March 15, 2025

PODCASTS

Podcast: Inside ABA’s new Treasury Check Verification System API

June 25, 2025

Podcast: Staying close to clients amid tariff-driven volatility

June 18, 2025

Podcast: Old National’s Jim Ryan on the things that really matter

June 12, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.