Buying a Kiddie Academy franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 21 7(a) loans to buy an existing Kiddie Academy (classified mostly as Child Care Services), totaling $31.9M. The median loan was $1,063,800, 65% higher than the $645,250 median for all SBA-financed acquisitions. 7 of these loans were approved in the last two fiscal years.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Kiddie Academy resale loans landed between $518,000 and $1,975,000.
- Lender experience exists. Live Oak Banking Company alone has financed 5 Kiddie Academy resales.
- Guaranty. The SBA guaranteed 76% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Kiddie Academy resale
The median SBA 7(a) loan for a Kiddie Academy resale was $1,063,800 across 21 loans (FY2018 to FY2026). Live Oak Banking Company, Wilmington Savings Fund Society FSB and The Bancorp Bank National Association have financed the most Kiddie Academy resales. Too few of these loans are old enough to measure a charge-off rate; the average for all SBA acquisition loans is 3.5%.
Kiddie Academy acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 3 | $1.8M | $288,000 | |
| FY2019 | 2 | $1.3M | $641,500 | |
| FY2020 | 1 | $2.9M | $2,930,000 | |
| FY2021 | 3 | $1.5M | $477,000 | |
| FY2022 | 3 | $5.7M | $1,694,000 | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 2 | $871K | $435,250 | |
| FY2025 | 3 | $6.3M | $1,200,000 | |
| FY2026 | 4 | $11.4M | $3,012,500 |
How often do these acquisition loans fail?
Fewer than 20 Kiddie Academy acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
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Lenders financing Kiddie Academy resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 5 | 23.8% | $10.9M | |
| 2 | Wilmington Savings Fund Society FSB | 2 | 9.5% | $3.6M | |
| 3 | The Bancorp Bank National Association | 2 | 9.5% | $791K | |
| 4 | Plains State Bank | 1 | 4.8% | $4.3M | |
| 5 | First Utah Bank | 1 | 4.8% | $4.2M | |
| 6 | NewFirst National Bank | 1 | 4.8% | $1.7M | |
| 7 | Beacon Bank and Trust | 1 | 4.8% | $1.4M | |
| 8 | Atlantic Union Bank | 1 | 4.8% | $1.2M | |
| 9 | Wells Fargo Bank National Association | 1 | 4.8% | $1.1M | |
| 10 | Dime Commercial Bank | 1 | 4.8% | $615K |
States where Kiddie Academy units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Texas | 5 | 23.8% | $11.6M | |
| 2 | Virginia | 3 | 14.3% | $4.2M | |
| 3 | New York | 2 | 9.5% | $3.5M | |
| 4 | Arizona | 2 | 9.5% | $2M | |
| 5 | Maryland | 2 | 9.5% | $969K | |
| 6 | Utah | 1 | 4.8% | $4.2M | |
| 7 | North Carolina | 1 | 4.8% | $2.7M | |
| 8 | New Jersey | 1 | 4.8% | $1.4M | |
| 9 | Pennsylvania | 1 | 4.8% | $477K | |
| 10 | Alabama | 1 | 4.8% | $350K |
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How lenders classify Kiddie Academy
Lenders code each loan to a NAICS industry. For Kiddie Academy the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Child Care Services | 16 | 76.2% | $27.2M | |
| 2 | Elementary and Secondary Schools | 3 | 14.3% | $1.4M | |
| 3 | All Other Miscellaneous Schools and Instruction | 1 | 4.8% | $2.9M | |
| 4 | Educational Support Services | 1 | 4.8% | $273K |
Questions buyers ask
How much do buyers borrow to buy a Kiddie Academy franchise?
The median SBA 7(a) loan for a Kiddie Academy resale was $1,063,800 across 21 loans (FY2018 to FY2026). The middle half of loans ran from $518,000 to $1,975,000. The loan excludes the buyer's equity and any seller note and may include working capital, so the price is usually higher than the loan.
Which banks finance Kiddie Academy acquisitions?
Live Oak Banking Company has made the most SBA acquisition loans for Kiddie Academy (5, 24% of the total). Wilmington Savings Fund Society FSB, The Bancorp Bank National Association, Plains State Bank follow.
What interest rate and term do Kiddie Academy acquisition loans carry?
The average initial rate at approval was 6.96% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 10 years.
Is a Kiddie Academy resale riskier than other SBA-financed acquisitions?
Too few Kiddie Academy acquisition loans are old enough to measure. The benchmark for all SBA acquisition loans is 3.5% charged off in the FY2018 to FY2021 cohort.
Where are Kiddie Academy units being bought with SBA loans?
Texas (5), Virginia (3), New York (2), Arizona (2), Maryland (2). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- All Child Care Services acquisitions
- Texas acquisitions
- Virginia acquisitions
- New York acquisitions
- Live Oak Banking Company
- Wilmington Savings Fund Society FSB
- The Bancorp Bank National Association
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Kiddie Academy" (franchise code S0943). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.