| (a) Eligibility.
(1) Prospective sponsoring organizations of day care
homes, participating sponsoring organizations of child care centers
or outside-school-hours care centers, independent centers, and participating
sponsoring organizations of less than 50 homes may apply once for
start-up payments to develop or expand successful CACFP operations
in day care homes.
(2) Participating sponsoring organizations of day care
homes may apply for expansion payments to initiate or expand CACFP
operations in day care homes in low-income or rural areas.
(3) Participating sponsoring organizations of day care
homes may apply for expansion funds more than once provided 12 months
or more have elapsed since satisfactorily completing a start-up or
expansion payment agreement with TDA and the contractor proposes to
expand into an area or areas different from those identified in previous
start-up or expansion payment agreements.
(b) Application.
(1) A contractor must submit a completed application
to TDA to be considered for start-up or expansion payments. TDA approves
or denies applications for start-up and expansion payments according
to 7 CFR §226.12(b), and this chapter.
(2) A contractor must contact TDA to request an application
for start-up and expansion payments.
(3) TDA will notify an applicant of the application's
approval or denial, in writing, no later than 30 days of TDA's receipt
of a complete application.
(4) If an applicant submits an incomplete application,
TDA will notify the applicant within 15 days of receipt of the application
and provide technical assistance, as needed, to assist with completion
of the application.
(5) Denial of an application for start-up or expansion
payments may be appealed. All appeals shall be conducted in accordance
with §§1.1000 - 1.1004 of this title (relating to Appeal
Procedures for the CACFP).
(6) A contractor approved for start-up or expansion
payments shall enter into a written agreement with TDA.
(7) A contractor that breaches the written agreement
with TDA may be required to repay all or part of the start-up or expansion
funds.
(c) Issuance of Start-Up and Expansion Payments.
(1) TDA issues start-up and expansion payments according
to 7 CFR §§226.2, 226.6, 226.7, 225.12, and written guidance
from USDA.
(2) The amount of start-up or expansion payments issued
to an eligible contractor shall be determined by the anticipated level
of start-up or expansion costs incurred by the contractor and any
alternate sources of income, as identified in the contractor's application.
However, a payment shall not be issued for less than the determined
anticipated administrative reimbursement for one month nor be greater
than the determined anticipated reimbursement for two months. Any
issued payment shall not exceed the following:
(A) Shall not be calculated for more than 50 day care
homes;
(B) Start-up payments to a contractor with less than
50 day care homes under their jurisdiction may not exceed 50 day care
homes including those homes under the contractor's jurisdiction at
the time of application; or
(C) Expansion payments may not exceed the product of
50 times the dollar amount identified in 7 CFR §226.12(a)(i).
(d) Use of Start-Up and Expansion Funds.
(1) Start-up and expansion payments must be used according
to 7 CFR §226.2 and §226.12, written guidance from USDA
and the written agreement with TDA.
(2) Start-up and expansion payments may not be used
to recruit day care homes that are already participating in CACFP
under an approved sponsor.
(e) Review and Monitoring Requirements.
(1) Upon expiration of the written agreement the contractor
must provide TDA documentation of activities performed and costs incurred
under the terms of the written agreement. If the contractor has not
made every reasonable effort to carry out the activities specified
in the written agreement, the contractor must repay all or part of
the payments, as determined by TDA.
(2) TDA may monitor the contractor's start-up or expansion
activities during or after the expiration of the written agreement
and may do so by announced or unannounced visits.
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