So far, half of the £2m Childcare Business Grant, which was launched last year, has been paid out to more than 4,500 entrepreneurs, leaving a further £1m still available.
To mark the milestone, childcare and education minister Sam Gyimah visited Brown Bears Nursery in Tottenham, which owner Cheryl Brown opened up after accessing funding through the grant.
The Childcare Business Grant is available to individuals who want to set up their own childcare business and provides help with costs such as training, equipment and adapting premises.
Grants of £500 are available to those looking to start nurseries or care for disabled children, and £250 to prospective childminders. The deadline for grant applications is 31 December 2014.
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