November 3, 2017
Most childcare center owners can see that their childcare center is doing well and that the childcare industry is a growing industry. Industry growth demands capital and loans. The question is, “How much is the lending volume increasing to the childcare industry in relationship to previous years?”
The last few years were good years for the childcare industry in getting additional growth capital. The number of SBA 7(a) loans in 2017 was 55% higher than the number of loans in 2010.
|Childcare Centers financed each year with a SBA 7(a) loan.|
|Year||Growth in number of loans as % of 2010 number of loans||Average Loan Size|
The average loan size has increased substantially from $340k in 2010 to $850k in 2017. This indicates that larger childcare centers are being acquired or built. These loans also include loans for working capital, so it may also indicate that there are fewer small loans being requested for working capital.