Change of Ownership Information

Child Care Learning Centers

The Georgia Department of Early Care and Learning (DECAL) values working with new owners during the change of ownership process. A Change of Ownership is required when:

1. A new owner buys an existing child care business, building, or property that remains in continuous operation.
2. The current owner changes the ownership type (e.g., Inc. to LLC).
3. The current owner creates a new corporation or LLC.

If your facility meets any of these criteria, complete the online Change of Ownership application via your DECAL Koala account. To establish an account, follow the instructions on the DECAL Koala website: https://www.decalkoala.com/Default

CHILD CARE SERVICES CHANGE OF OWNERSHIP

Change of Ownership Guidelines for Seller and Buyer

• Permit Issuance: DECAL acknowledges ownership change only after issuing a permit, which allows new owners to operate until the final license is granted. The new owner must submit all documents and cannot operate or care for children without a permit. The current program remains open and liable until the permit is issued.
• Negotiation and Closing: The buyer and seller must negotiate all terms and conditions of the business exchange. DECAL will issue a permit and close the seller’s license upon receiving the final closing documents, which also closes the DECAL Koala account for the license.
• New Owner Responsibilities: All documents must be submitted by the new owner, and all correspondence related to the application will be with the new owner.
• Closing Documents: Before issuing a permit, closing documents must be uploaded to the Change of Ownership application on or after the sale date. These documents can be formal closing agreements with both signatures or a notarized letter from the seller indicating the sale and date of the exchange.
• Record Check Clearance: Issuing the permit will automatically transfer all record check clearance letters to the new license number, notifying all staff associated with the current license. For more information, contact the Records Unit at 855-884-7444 or CRC@decal.ga.gov.
• Permit and Licensing Process: During the change of ownership, a new owner may receive a permit, temporary license, and finally a renewable license. Permits are valid for 21 days, during which additional documentation and approvals must be submitted, and an Initial Licensing Study visit will be scheduled. Once a permit is issued, programs can apply for various DECAL programs and resources.
• Types of Licenses:
  • Permit: Temporary authorization to operate without a license for a limited term.
  • Temporary License: Extended temporary authorization beyond the permit term.
  • Renewable License: Authorization to operate a center in accordance with DECAL’s rules and regulations.
• Application Submission: Ensure all application information and required documents are submitted promptly to avoid delays or application denial. Applications should be completed online via the New Owners DECAL Koala account.

For additional information regarding a change of ownership, you may contact CCSASUCOO@decal.ga.gov or ChildCareOwnership@decal.ga.gov

GEORGIA’S PRE-K PROGRAM CHANGE REQUEST PROCESS

Georgia’s Pre-K Program Change Request Process

Georgia’s Pre-K Program is generally non-transferable. When a center is sold, change of ownership requirements must be met before transferring the Pre-K program to the new owner. Eligible entities can apply for transfer as specified in the Georgia’s Pre-K Program Providers’ Operating Guidelines.

Requesting to continue services does not guarantee funding for the new owner, as funding decisions are at DECAL’s discretion. Payments are placed on hold during the change of ownership process, and business decisions should not assume automatic approval. The Pre-K Division will notify the new owner of the continuation status after a valid permit is issued.

If approved, the payment hold is released, and the new owner can continue Pre-K services. All equipment, supplies, and materials remain with the program, and the new owner accepts the current grant agreement conditions. For more information, refer to section 21.6 in the guidelines or email prekbusiness.support@decal.ga.gov

Quality Rated - Change of Ownership Information

Quality Rated Data Transfer Process

Programs undergoing a Change of Ownership may transfer Quality Rated (QR) data if the seller has a current and valid rating. Transferable data includes:

• Current rating and expiration date
• Cohort selection
• Portfolio in progress
• CAPS/QR Provisional or Probationary Status

When a child care program changes ownership, the program’s Quality Rating is not automatically transferable. The new owner must complete a Change of Ownership application within their KOALA Self-Service portal. DECAL will evaluate licensing history, staff and leadership retention, program standing with applicable DECAL divisions and anticipated program changes to determine if the rating can be transferred. Approval is not guaranteed, and Quality Rated benefits will not apply until the rating is officially transferred to the new license number.

If the rating is not transferred, programs planning to participate in CAPS may still qualify for the Quality Rated Provisional Status. This temporary status allows continued access to CAPS Scholarships while the new owner works toward earning an initial rating under the new license.

Tips to avoid delays for new owners:

Do Not create a new QR account during the transfer process to avoid delays.

Do not request CAPS/QR Provisional Status if you wish to transfer QR data. If the transfer is not approved, you will be guided to the CAPS/QR Provisional Status process.

For questions or to request a QR Data Transfer Application Form, contact the Quality Rated Help Desk at QualityRated@decal.ga.gov or 1-855-800-7747.

CAPS- Change of Ownership Information 

• CAPS Eligibility: To participate in CAPS, new owners must:
  1. Have a Quality Rated status (transferred or provisional).
  2. Receive a permit, temporary license, or continuing license from Child Care Services (CCS).
  3. Complete and have an approved enrollment application for CAPS.
• CAPS Enrollment Process:
  1. Apply for a Change of Ownership and receive the necessary permit or license from CCS.
  2. Contact the CAPS Provider Relations team at CAPSProviderSupport@decal.ga.gov for information on the CAPS change of ownership process.
  3. Receive a GACAPS welcome email from Provider Relations to start the enrollment process.
  4. Once set up and approved in GACAPS, scholarships will be transferred to the new owner based on the completion dates of Quality Rated and CCS licensing requirements.

• CAPS Enrollment and Payments:
1. CAPS enrollment and payments depend on meeting both Quality Rated and CCS licensing requirements.
2. Once the new owner receives their permit, temporary license, or continuing license, the seller can no longer provide care or receive CAPS payments.
3. CAPS payments received by the seller before the permit, temporary license, or continuing license issuance should be negotiated between the buyer and seller.
4. For more information about the CAPS program, visit www.CAPS.decal.ga.gov

Nutrition – Change of Ownership Information

How to Apply for CACFP

CACFP programs cannot be transferred. New owners must apply directly with DECAL or through an approved Sponsor.

Direct Agreement with DECAL:

1. Attend Training: Complete a 2-day Program Training to gain access to the online application.
2. Submit Application: Provide a completed application and supporting documents to DECAL.
3. Operate and Document: Run the CACFP and maintain required documentation for at least one month.
4. Pre-Operative Visit: Pass a satisfactory pre-operative visit.

To register for training, contact 404-657-1779.

Sponsorship with an Approved Administrative Sponsor:

1. Find a Sponsor: Use the “Search for Nutrition Programs” on the DECAL website or click here, https://www.decal.ga.gov/Nutrition/Search.aspx to find a list of approved sponsors.
2. Pre-Approval Training: Sponsors will provide necessary training and application materials.

Finance Requirements for USDA (United States Department of Agriculture) CACFP Programs

For New Owners Intending to be a Sponsor:

1. Complete Forms: Submit a Supplier (Vendor) Change Request Form and a Taxpayer Identification Number (TIN) Verification Form.
2. Payment Verification: These forms ensure payments are made via electronic disbursements (ACH) to vendor bank accounts.
3. Provide Banking Information: Required to establish electronic payments.
4. Ensure Correct Payment: Payments will be made to the entity owning the Child Care Learning Center license.

Change of Ownership Documents