Childcare and Early Childhood Education

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Starting a Childcare Business in Michigan

Michigan needs more licensed childcare providers. Today, there are more resources than ever to help aspiring providers get started. The State of Michigan recognizes three types of licensed childcare facilities:

  • Family Child Care Home — care for 1–6 unrelated children in your home

  • Group Child Care Home — care for 7–12 unrelated children in your home

  • Child Care Center — care in a commercial facility for any number of children under 13

Step-by-step guidance and licensing resources:

Step-by-Step Guide to Child Care Licensure in Michigan — a plain-language walkthrough of the full licensure process, from application and zoning approval through orientation, inspection, and your original license

Michigan Child Care Licensing Bureau (MiLEAP) — the official home for licensing rules, laws and regulations, applications and renewals, the CCHIRP provider portal, and parent and provider resources from the state agency that oversees all licensed childcare in Michigan

Our Strong Start (OSS) Program — a MiLEAP initiative specifically designed to support new providers entering the field, with coaching and resources to help navigate the licensing process

Great Start to Quality — Michigan's quality rating and improvement system for childcare providers; includes a searchable directory of licensed providers and quality improvement resources

Great Start to Quality U.P. Resource Center — local support for providers in the Upper Peninsula, including help connecting families to available care (call 906.228.3362)

Resources for Local Businesses and Families for Affordable Childcare

MI Tri-Share is a Michigan workforce development program that makes childcare more affordable by splitting the cost three ways: one-third paid by the employee, one-third by the employer, and one-third by the State of Michigan.

Who it's for: Michigan employers and working parents with household incomes between 201% and 325% of the Federal Poverty Level. Funds can be used for any licensed childcare provider serving children ages 0–17, including preschool, before/after school care, and summer programs.

For employers, participating in MI Tri-Share is a recruitment and retention tool — a meaningful benefit that helps your employees stay in the workforce without significant cost to your business

To learn more or get started:

Childcare Resources for Local Governments

Childcare isn't just a family issue — it's an economic development issue. Addressing childcare supply is essential to attracting and retaining the workforce our communities need to grow. A 2024 regional assessment by the Early Childhood Education Task Force of the Upper Peninsula found that in many communities in the U.P., three or more children compete for every licensed childcare spot — and in some areas, no licensed spots at all. In addition to the lack of access, over half of U.P. families surveyed were spending more than double the federally defined threshold for "affordable" childcare.

Childcare Is a Land Use Issue

Outdated or overly restrictive zoning can prevent childcare businesses from opening — even when the community desperately needs them. The U.P. ECE Task Force's municipal assessment found that a significant number of local master plans across the region are out of date, and that strategies addressing childcare are uncommon in U.P. plans. That's an opportunity.

Why it matters:

Access to childcare is inextricably linked with housing, transportation, and employment needs. Convenient, affordable childcare can create economic advantages for both families and communities. Treating childcare centers as commercial land uses rather than neighborhood-serving uses increases the cost and inconvenience of childcare for residents — and increased zoning barriers add directly to the cost of care.

Understanding the Childcare Landscape

These resources provide data and context on the scope of the childcare shortage in Michigan and the Upper Peninsula:

‍Michigan Child Care Mapping Project (MSU) — interactive maps from Michigan State University's Engaged Research and Evaluation Center, supported by MiLEAP, tracking childcare deserts, licensed provider counts by county, and how state investments are flowing. A powerful tool for understandingwhere new providers are most needed.

U.P. ECE Child Care Coalition 2024 Report and Actions — a comprehensive needs assessment covering all 15 U.P. counties, with data from surveys of parents, employers, childcare business owners, and municipal governments. Includes findings on availability, affordability, workforce wages, licensable building stock, and zoning barriers.

Good planning and zoning practices for childcare include:

Planning and zoning varies from community to community, but there are numerous practices that can help reduce barriers for childcare

  • The American Planning Association encourages communities to amend local zoning ordinances to remove obstacles to regulated group and family childcare in all appropriate and safe zoning districts — rather than requiring a special use permit or public hearing for every application.

  • Where conditional use permits are required, make them administrative (staff-level review, no public hearing) for smaller or lower-impact facilities. Lengthy, expensive approval processes disproportionately burden small, home-based providers who have the least capacity to absorb delays

  • Permit and impact fees designed for commercial development can be prohibitive for childcare entrepreneurs operating on thin margins. Many communities have begun waiving or reducing fees for childcare facilities the same way they do for affordable housing.

  • Long-range comprehensive plans set the framework for regulatory and programmatic change — evaluating these plans for areas that need more policy support for childcare facilities is an important first step. Communities that explicitly address childcare needs in their master plans create a foundation for the zoning and programmatic changes that follow.

  • Vacant commercial spaces, underused schools, and church buildings are often well-suited for childcare facilities. Zoning and local incentives can encourage their conversion.

  • In the U.P., older building stock, private well and septic systems, and long distances to inspection resources create unique barriers. Municipalities can help by streamlining local permitting steps that are within their control and actively connecting aspiring providers with state and regional navigation support.

Resources for local officials and planners:

Planning and Zoning Best Practices Guide for Child Care Facilities — developed by CUPPAD Regional Commission as part of the ECE Task Force's work; shared with planning commissions across the U.P.

APA Policy Guide on the Provision of Child Care — the American Planning Association's longstanding policy guidance on integrating childcare into local planning and zoning.

Reducing Barriers for Childcare Facilities, Parts 1 & 2 — a two-part series from MRSC (Municipal Research and Services Center) with practical examples of how communities are updating their codes to support childcare development.

Michigan Child Care Mapping Project — Child Care Deserts Map — use this to illustrate the need in your community when making the case for plan updates.

Questions?

The Western U.P. Planning & Development Region is a partner in the U.P. Regional Child Care Coalition. We can connect you with local resources, technical assistance, and programs that support employers, childcare entrepreneurs, and communities working to improve childcare access.