You should first have a business plan which includes all the costs related to a day care service. You will ideally need supplies, utilities, a building (rent), employees (wages), and insurance. Moreover, set aside the advertising and marketing cost.
Essentially you must be able to provide a plan regarding the amount of revenue you expect to generate. This is an important consideration as most government based grants may provide direct help to those families, who cannot afford a daycare service.
Profit or non-profit organization
Decide whether you want to register yourself as a profit making entity or a non-profit organization. If you choose the former category, you may not be entitled for state grants as the sole purpose is to make money for personal use. However, for non-profit organization, there may be various opportunities which one can purse.
If you choose to run the day-care business for money generating purpose, then you may need to contact a local bank. Provide the bank details of your credit history and hand them the business plan you have created.
Depending on your credit worthiness, the bank will grant you a loan and will charge you interest payments. Moreover, you can contact individuals or venture capitalists who usually charge a low rate as compared to banks, and provide more flexibility in the duration of the loan.
If you wish to establish yourself as a non-profit entity, then contact the local childcare resource and referral organization (CCR&R), which specifically deals in issues related to childcare. They will be able to provide initial grant which will allow you to buy equipment and other essential start-up materials. They may also assist you in finding potential clients, and further provide initial training.
For community based businesses, the ideal way to obtain grants is to network with other similar type of businesses. Although it may be time consuming, but allows you to interact with other helpful people.