The Growth And Decline In SBA Loans To Childcare Centers That Were Written Off By Lenders

During the last recession, the childcare center industry was hit hard and lots of childcare centers were closed down. Below is the number of SBA 7(a) loans to childcare businesses that were charged off by lenders. These charge-offs were from SBA 7(a) loans issued since 2000. The number of bank charge-offs for childcare center loans is down considerably from the peak in 2010.

Year # Charged off by Lenders
2001 2
2002 8
2003 11
2004 19
2005 22
2006 84
2007 60
2008 163
2009 101
2010 243
2011 176
2012 109
2013 68
2014 76
2015 146
2016 99
2017 42

 
Even though the childcare industry in general is doing well, there are still a number of bank foreclosures of childcare centers.

Amount of loan # Charged off by Lenders
$0 to $100k 870
$100k to $250k 215
$250k to $500k 142
$500k to $1m 132
$1m to $2m 68
$2m to $3m 1

Most of the SBA 7(a) loans for childcare centers that have been charged off are the smaller ones.

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