Borrower guide · Use case
SBA loan for a daycare
Child care is a steady, in-demand business that SBA lenders understand well — provided the licensing and the real estate line up.
Why lenders are comfortable
Child care has durable demand and recurring monthly revenue, which underwrites well. An existing, licensed, enrolled center with a track record is an especially clean file; a new center is fundable but leans more on your plan and experience.
Licensing and facilities
State licensing and code-compliant facilities are the gating requirements — capacity, ratios, safety. Lenders will want the license (or a clear path to it) and a facility that supports the projected enrollment. Build the ramp-up into your working capital.
Buying the building
If real estate is part of the deal, standard SBA real-estate terms apply — up to 25 years, roughly 10% down for general-use property. Compare 7(a) and 504 on your numbers in the program guide.
Business affordability calculator
Enter enrollment revenue and price to see whether a child-care deal services the debt.
Check the coverage →Daycares in the record
our dataChild day care is a well-represented SBA category; see loan sizes, active lenders and default performance on our child-care industry page. Size your deal below.
Common questions
Can you get an SBA loan for a daycare?
Yes — steady demand and recurring revenue make child care a solid file, especially when buying an existing licensed, enrolled center.
What do lenders require for a daycare loan?
State licensing (or a clear path to it), code-compliant facilities that support your enrollment projection, and adequate working capital for the ramp-up.
Can I buy the building with the same loan?
Yes — real estate follows standard SBA terms, up to 25 years and roughly 10% down for general-use property.
Keep going
Rules described here follow SBA SOP 50 10 8 (effective June 1, 2025) and can change; lenders add their own overlays. This is education, not advice — confirm specifics with your lender. Figures cited as “our data” come from the SBA 7(a) & 504 FOIA record, released 2026-06-30.