Homebook Funding Helper · FAQ
Founder questions, answered
Straight answers to what founders ask most, each linked to the guide or listing it comes from. If yours isn’t here, email sam@gethomebook.com and we’ll add it.
Getting started
Is there a grant that will pay to open my microschool?
Rarely. The national startup grants we checked are closed, paused, invitation-only or nonprofit-only (Walton's Innovative Schools Program, Getting Smart, Drexel). Most usable startup money right now is loans plus small, targeted grants. See: How a microschool, private school or co-op actually gets money in Arkansas · Drexel Fund: Founders Program (paid fellowship, then startup funding), Walton Family Foundation: Innovative Schools Program
Why do I need money before school even starts?
EFA tuition is paid quarterly. For 2026-27 the first deposit to families was Aug 20, 2026, and schools are paid after parents accept their ClassWallet requests. Rent, deposits and supplies come due before that. See: Arkansas EFA for schools: participating private school vs. service provider
What's the cheapest money available?
Kiva lends $1K–$15K at 0% if you can rally 5–40 lenders from your own network first. Free coaching comes with ACC Capital's microloan, and ASBTDC consulting is free. See: How to apply for a small-business loan (and what lenders will ask for) · Kiva: Kiva US 0% loan, ACC Capital (formerly Arkansas Capital Corporation): Microloan Program
How much does it cost to start a microschool?
We haven't found a reliable published startup figure. The National Microschooling Center reports a median cost of $6,500 to educate one child per year in operating microschools. Price your own list. See: A startup budget for a microschool (with a template outline)
Structure
Should I be an LLC or a nonprofit?
That's a CPA or attorney question. It decides which money you can reach: SBA loans need a for-profit; most foundation grants need a 501(c)(3). See: LLC, nonprofit or church ministry: what each one can apply for
My school is an LLC. Can I get nonprofit grants?
Not in the LLC's name. A fiscal sponsor or a companion nonprofit can sometimes fund a separate charitable project, but some funders (Union Pacific) refuse fiscal-sponsor applicants. See: Fiscal sponsors and companion nonprofits: can a for-profit school get nonprofit grants?
Can my school use the short IRS Form 1023-EZ?
No. The 1023-EZ worksheet excludes schools. Schools file the full Form 1023 ($600 user fee). See: LLC, nonprofit or church ministry: what each one can apply for
We meet in a church. Does that make us a nonprofit?
No. You're either a ministry of the church (under its tax status) or a tenant with your own structure. Get it in writing. See: Church-hosted schools and co-ops: the model, what to put in writing, what to ask
EFA
Can a microschool take EFA money without being accredited?
Yes, as an approved service provider. The rule lists "micro-schools, learning pods, full-time home school co-op." Your students are then legally homeschoolers, and each family files a Notice of Intent. See: Arkansas EFA for schools: participating private school vs. service provider · Arkansas Department of Education (Office of School Choice and Parent Empowerment): Education Freedom Accounts: approved service provider (microschools, learning pods, co-ops, tutors)
What does it take to be an EFA participating private school?
Accreditation (or being in process), a financial-capacity proof, background checks with fingerprinting, annual norm-referenced testing for EFA students, and the four core subjects. See: Arkansas EFA for schools: participating private school vs. service provider · Arkansas Department of Education (Office of School Choice and Parent Empowerment): Education Freedom Accounts: participating private school
How much is an EFA for 2026-27?
$7,208 per student ($1,802 a quarter); $8,011 for "Succeed" students (ADE). See: Arkansas EFA for schools: participating private school vs. service provider
Can I charge EFA families more than other families?
No. The rule bars charging EFA families a different tuition. See: Arkansas EFA for schools: participating private school vs. service provider
Can homeschool co-ops be paid with EFA funds?
Yes, if the co-op is approved as a full-time or part-time service provider. See: Arkansas EFA for schools: participating private school vs. service provider and Homeschool co-op funding: structure, fees, insurance and the grants that actually fit
Loans
Will a lender fund a brand-new school?
Some will. ACC Capital lists "Startup Costs." The Lending Lab wants signed tuition contracts with deposits, and says first-year founders often use one cycle to get their file ready. See: How to apply for a small-business loan (and what lenders will ask for)
Do I have to personally guarantee a loan?
Usually. The Lending Lab, Communities Unlimited and SBA (20%+ owners) all require it. See: How to apply for a small-business loan (and what lenders will ask for)
Are there loans for Christian schools?
Yes. America's Christian Credit Union, AdelFi and LCEF (LCMS schools) lend to churches and Christian schools. ACCU offers an operating line of credit for schools waiting on "quarterly state voucher disbursements." See: America's Christian Credit Union: School Loans (incl. operating line of credit), AdelFi Credit Union (formerly ECCU and Christian Community Credit Union): Ministry real-estate loans, lines of credit, term loans
What will a lender ask for?
An EIN, a separate business bank account, clean monthly books, a five-year budget in Excel, signed enrollment contracts, a lease or facility plan, and liability insurance. See: Insurance and paperwork funders and lenders ask for
Grants
Which grants can a small private school actually get?
Small, specific ones: Walmart Spark Good (nonprofit private schools), Snapdragon and the Laura Bush Foundation (library books), Pets in the Classroom, KidsGardening, Arkansas State Parks field trips, and Fund for Teachers (teachers). See: How to write a grant application as a small school
Can private schools use DonorsChoose, NEA or AFT grants?
No. DonorsChoose "does not serve private, parochial, non-profit, or home schools." NEA Foundation grants are for NEA members. AFT's fund goes to union locals. See: DonorsChoose: Classroom crowdfunding, NEA Foundation: Student Success and Learning & Leadership grants
Are there grants for homeschool co-ops?
A few: HSLDA Group Grants (reopen early 2027), the Arkansas State Parks Field Trip Grant (names homeschool groups), KidsGardening, and First Book if 70%+ of kids are low-income. See: Homeschool co-op funding: structure, fees, insurance and the grants that actually fit
Is the HSLDA Compassion grant for co-ops?
No, it's for families ($300–$400 per child). A family can spend it on co-op tuition. Families using public funds such as ESAs appear to be excluded; confirm with HSLDA. See: HSLDA Compassion: Curriculum Grant (for families)
How do I write a grant application?
Check eligibility first, pick a small concrete project, write a short need statement, and attach a budget that adds up. See: How to write a grant application as a small school
Someone wants a fee to "unlock" grants. Should I pay?
No. Every program on our list is free to apply for (some, like NASE, need a paid membership, and we say so).
Donations and other money
Are gifts to my school tax-deductible?
Only if you're a qualified organization, such as a 501(c)(3) or a church. Gifts to an LLC aren't, and tuition never is (IRS Pub 526). See: Donations and crowdfunding for small schools: what's tax-deductible and how to raise money honestly
Can I use GoFundMe or Givebutter?
Yes. Givebutter supports organizations, including non-nonprofits. Personal GoFundMe gifts generally aren't deductible. See: Donations and crowdfunding for small schools: what's tax-deductible and how to raise money honestly
What's the new $1,700 federal tax credit?
Starting Jan 1, 2027, donors can claim up to $1,700 for gifts to scholarship organizations. Arkansas has opted in. Arkansas's list of scholarship organizations isn't out yet. See: Scholarship tax credits: Arkansas PIAK and the new federal credit (2027)
What is PIAK?
Arkansas's tax-credit scholarship. Donors get a 100% state credit, and income-eligible students get scholarships for private schools the scholarship organization approves. See: Scholarship tax credits: Arkansas PIAK and the new federal credit (2027)
Paperwork
Do we need to register as a charity in Arkansas?
A charity soliciting Arkansas donors generally registers with the Secretary of State first (no fee). Some groups file for an exemption instead. See: Fiscal sponsors and companion nonprofits: can a for-profit school get nonprofit grants?
What insurance do we need?
Lenders and church hosts commonly ask for $1M general liability. Many groups also carry abuse/molestation and directors-and-officers coverage. Ask an agent. See: Insurance and paperwork funders and lenders ask for
About this tool
Is this really free?
Yes. There’s no fee, no account and no email signup. You can browse every listing and guide without giving us anything.
Homebook builds it and keeps it free. Homebook is a school-records app, but you don’t need it, or anything else, to use this.
Who is this for?
Founders and leaders of microschools, small private schools and homeschool co-ops. Use the School type filter on the funding list to narrow it down.
It starts with Arkansas, plus national programs anyone in the US can apply to. More states can be added later.
My school is for-profit (an LLC, Inc. or sole owner). What can I apply for?
On the funding list, set Can a for-profit school apply? to Yes. Every listing answers that question using the funder’s own words, and says Unclear when the funder doesn’t say.
Be ready for the honest answer: right now, most money open to a for-profit school is a loan, not a grant. The top of the list shows the current count.
Are microschools for-profit or nonprofit?
Both, plus church ministries and schools still waiting on their 501(c)(3). In a check of 74 Arkansas EFA microschools, about 1 in 4 had their own 501(c)(3) on file with the IRS. See For-profit, nonprofit or church ministry? What microschools actually are for what that means for funding.
What’s the difference between a grant, a loan and a prize?
A grant is money you don’t pay back. A loan you pay back, usually with interest, and small-business loans often ask the founder to personally guarantee it. A prize is a competition: you apply, and a few winners are picked.
Every listing is labeled, so you always know which one you’re looking at.
How current is this information?
Every listing was checked on the funder’s own site and shows Last checked with the date. If a listing isn’t re-checked for 90 days it gets a warning flag, and closed programs move to Watch for the next round.
Funders change their rules, so always confirm on the funder’s page before you apply. Each listing links to it.
Can I get reminders before a deadline?
Yes, in your own calendar. Open a listing with a deadline and click Add deadline to my calendar. It adds the date with a reminder a week ahead. Nothing is stored on our side and there’s no email list.
Why isn’t a funder I’ve heard of listed?
We only list what we could confirm on the funder’s own site. Funders we couldn’t confirm are under Still checking at the bottom of the funding list. Names founders often hear about that don’t fit, or no longer exist, are under Checked: not an option.
Know of one we missed? Email sam@gethomebook.com with a link to the funder’s page.
I found a mistake. How do I report it?
Use Report a correction at the bottom of any page, or email sam@gethomebook.com. We re-check it against the funder’s own page and fix it.
Is this legal, tax or financial advice?
No. It’s a starting point. Whether your school should be for-profit or a nonprofit, use a fiscal sponsor, or take on a loan is a decision for your CPA or attorney.