MCDC COVID19- Updated Operating Status 4-1-20

MCDC Families,

We hope this message finds you well. First and foremost, we greatly appreciate your understanding and patience during this unprecedented situation. The Board has been working diligently to find a way to balance the needs of parents as well as ensuring our staff is well taken care of since they are the heart and soul of MCDC. The Board has come up with a viable solution to overcome the challenging weeks ahead.

We have 3 months of operating expenses in our reserves; however, we cannot predict when this pandemic will end, and the resulting economic impacts after businesses open again. As part of the COVID-19 aid bill signed by President Trump on 3/27, the Paycheck Protection Program (PPP) is one of the options meant to help small businesses during this pandemic. A PPP loan/grant will provide 8 weeks of payroll and health insurance for our staff. We are currently filling out and providing the appropriate paperwork associated with this, and have already had conversations with our banking institution on options and requirements. It may take a few weeks for the loan application process to be completed. Our goal is to use this loan (if approved), reduced tuition, and fees (not all in parallel and not in that order) to extend the MCDC operations for as long as possible.

If we are approved for the PPP, and spend it all on payroll and health insurance within 8 weeks, the loan can be forgiven (there are stipulations which are being considered and discussed with our financial institution). If the loan does not get approved, the board would re-assess the situation.

Our current plan and expectations are, including unknowns based on data not yet in hand:

1. Ensure all tuition is paid in full through April 3rd. Please send checks to: MCDC; PO Box 9138; MSFC, AL 35812. These tuition payments will replenish our savings account, which is the account that will pay our staff while we wait on the PPP loan to activate. 90 % of tuition payment goes to teacher salaries and benefits.
2. For a period of time starting on April 6th until the PPP funds become available, a discount of 25% will be applied to all tuition payments, and savings account funds will be used to make up the difference for salaries and insurance benefits. New tuition rates are outlined in the table below. Please mail your checks weekly to the PO Box.
3. For the duration of the PPP loan, starting when the PPP funds become available, a $25 fee will be required per week, per child. Tuition will be waived during this time.
   1. This fee reserves your child’s spot in the center, while also replenishing our savings that were used for payroll (in conjunction with the reduced tuition) waiting for the PPP funds.
4. For the time after the PPP loan ends or if the PPP loan is not approved, the board is currently assessing options including tuition payment amounts, lay-offs, reduced staffing and/or closure.
5. During times of reduced tuition, should parents feel so inclined, funds received above the reduced tuition rate (via a separate check) can be considered a donation and a receipt can be provided upon request.

Rest assured that the Board is actively working on potential solutions.