Catherine, you are having some damping off of a few seedlings. We started seeds indoors over the winter for several years and stated having more problems daming off and mold so I changed and moved the operation outdoors last year. I built a hoophouse and planted seedlings all winter in cups and pots. We had great results with no damping off or mold.
Larry, I am not sure how your seedlings that are just sprouting will handle the freeze but if they have roots and growing baby plants I think they will survive. If you have them outside in the weather you could put them on the sunny side up against the house or just a small cover over them.
The temps are cold since my hoophouse is just a PVC frame and 6mil plastic cover. Last winter we had temps down to -4f and temperatures in the hoophouse got below freezing several times. We did not loose any seedlings to the cold temperatures.
I have about 1000 seedlings started and growing so far this winter in the hoophouse. Our forecast is for the next 6 days to be below freezing for high temps. Over the next 6 days temps from 5f to 28f will give these seedlings a freeze test. I use one small space heater in my 8' x 16' x 8' high hoophouse. It is not enough to keep it above freezing when temperatures drop into the teens and below.
I did not know just how well newly planted daylily seedlings would survive winter conditions but lots of experiments tell me that they are tough. I have tried just about everything here. I expect from our results last year that the new seedlings will survive. Some will go dormant until spring.
I sprout my seeds in the fridge in moist vermiculite and then plant them in cups and pots so they go in the hoophouse as newly planted baby plants.
This is what they look like when ready to be planted.
Here are plants in the hoophouse.