Punkin Patch Daycare will receive a $40,000 loan from the Watertown Local Development Corp. to help pay off debt and purchase equipment.
The day care center opened in December at the site of the former Our Lady of the Sacred Heart Day Care, 320 W. Lynde St. The WLDC, also known as the Watertown Trust, recently approved the seven-year loan.
It will pay for outdoor playground equipment and new cribs, in addition to helping with debt.
The center employs 25 full- and part-time workers and serves 80 children. It is open from 5:30 a.m. to 5:30 p.m. weekdays.
The space in the former Sacred Heart Day Care became available in August after that center closed because of financial difficulties.