SBA Loan Pre-Qualification To Buy Or Start A Childcare Center

Request a SBA Loan Pre-Qualification to Find Out 1) How Much, and 2) The Lowest Interest Rate You Qualify For!

Submit your information online if you are interested in financing an acquisition of a Childcare Center, or starting a childcare center . This preliminary application will get us started so that we can start to identify lenders, and determine loan terms & interest rates.

All information that you provide is completely confidential and will only be used by Childcare Broker to help finance yourloan. If you have already identified a specific center to buy, you will likely need to refer to the center’s income statement (P&L statement), and select other financial information to answer the questions. If you have not yet identified a childcare center to buy, we can pre-qualify you for financing based on your personal financial information and experience.

We will be in touch with you shortly after receiving your online answers to provide estimates on how much you qualify for and the interest rate.

To secure a loan, additional documentation will be needed such as income tax returns, financial statements, and information on the childcare center. To secure a loan with low interest rates and good loan terms, we will need to understand all the factors that lenders look at.

Thank you for choosing to submit your information online. Childcare Brokers does not pull credit reports, so starting to finance a childcare center with us will not affect your credit score. It is our view that it is best for the borrower to provide a credit report for interested lenders to review, instead of each interested lender pulling a credit report. If you have already identified a childcare center to buy, soon you will need a credit report, so if you don’t have a credit report, here is a website for you to get one for free, but, really you can get it anywhere: www.AnnualCreditReport.com/index.action.

This reports on historical interest rates given by SBA 7(a) lenders over the last year to childcare center borrowers. . . . We report on the interest rates broken out by 1) loan size, and 2) if the loan was for the business only, or for both the real estate and the business. . . . There are about a thousand SBA loans to childcare centers each year that we analyze and report on.
Generally, SBA lenders require a minimum Equity Down Payment from the buyer of 10% of the total acquisition cost of the center. If an existing childcare center owner is buying an additional center, some SBA lenders may not require any equity down payment. There are a few SBA lenders that will only require a 5% down payment from a buyer if the buyer is currently the director of the center she is buying. . . . Depending on a borrower's related experience, having a 15% down payment (instead of a 10% down payment) may be required, or will affect the loan's interest rate. . . . A larger equity down payment is often required to start a childcare center, but, some franchisees with very low loan default rates only require a lower down payment. . . . As a FYI, many people are not aware that funds in a retirement account can be used to buy or start a business without paying any taxes or penalty for early withdraw.
The amount of related experience to owning a childcare center can either help, or hurt, a potential borrower's chance of getting a loan, the amount of down payment required, and the interest rate that lenders will give to the borrower. . . . Please describe any related experience. . . . Examples of experience that is related: School teacher, managed XX people (an owner of a childcare center will manage many employees), salesperson (sales skills are required to enroll), your young children have attended a childcare center for X years (you have consumer experience in childcare), business owner of a business in another industry (You understand how to own/manage a business), business person, ...
Some lenders have a national footprint, while other lenders will lend in just a few states, just one state, or even just in a smaller local area. . . . Some national or regional lenders only loan to metro areas, while others will only loan to rural areas. . . . Providing your targeted location(s) will allow us to match your loan with all lenders that lend to your center's targeted geographical area.
Some lenders give very low interest rate to franchises that have low failure rates.
When would you like to buy/start a childcare center? ...OR...When is the target closing date?

OPTIONAL INFORMATION:

The below questions are optional, but, can be important to help us determine the refinancing you qualify for. Please take a few minutes to answer whatever questions you can.
Please describe any negatives to get a loan.
SBA lenders generally require a credit score of 580 or above.

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