Child Care Services: SBA business acquisition loan data
850 SBA 7(a) loans since FY2018 financed the purchase of an existing business classified as Child Care Services (NAICS 624410), totaling $1.1B. Median loan $763,300, 18% higher than the all-acquisition median. Annual volume rose 20% from FY2024 to FY2026. 22% of these deals were franchised units.
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The median SBA loan to buy daycares was $763,300 across 850 acquisition loans (FY2018 to FY2026), 18% higher than the $645,250 median for all SBA-financed acquisitions. Live Oak Banking Company, The Huntington National Bank and Beacon Bank and Trust made the most of them. Of 383 seasoned loans (FY2018 to FY2021), 0.8% were charged off, 78% lower than the 3.5% average for all SBA acquisition loans.
Reading this industry's numbers
- Deal size. The loan excludes the buyer's equity and any seller note and may include working capital. A loan request far above $1,619,500 would be in the top quarter of SBA acquisition loans in this industry.
- Share of all acquisitions. This industry is 1.7% of all SBA-financed business purchases, ranking #9 of 300 industries tracked.
- Geography. Florida leads with 138 loans; the top five states account for 49% of the industry's acquisitions.
- Jobs. Lenders reported 17,135 jobs supported across these loans, about 20.2 per acquisition, a rough proxy for the size of business changing hands.
Child Care Services acquisitions by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 84 | $101M | $631,400 | |
| FY2019 | 130 | $154M | $735,450 | |
| FY2020 | 69 | $85M | $835,000 | |
| FY2021 | 100 | $120M | $722,500 | |
| FY2022 | 72 | $114M | $1,125,000 | |
| FY2023 | 79 | $99.3M | $715,000 | |
| FY2024 | 92 | $112M | $803,850 | |
| FY2025 | 114 | $125M | $735,000 | |
| FY2026 | 110 | $158M | $944,000 |
How often do these acquisition loans fail?
Of the 383 Child Care Services acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 3 have been charged off by the SBA, a rate of 0.8% by loan count and 0.2% by dollars. 197 have already been paid in full.
For comparison, the charge-off rate across all SBA 7(a) acquisition loans in the same cohort is 3.5%, so Child Care Services is 78% lower than the acquisition-loan average. 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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Top states
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Florida | 138 | 16.2% | $150M | |
| 2 | Texas | 124 | 14.6% | $233M | |
| 3 | Georgia | 56 | 6.6% | $102M | |
| 4 | California | 54 | 6.4% | $73.9M | |
| 5 | New Jersey | 44 | 5.2% | $46.9M | |
| 6 | Colorado | 33 | 3.9% | $56.8M | |
| 7 | North Carolina | 32 | 3.8% | $73.2M | |
| 8 | Pennsylvania | 30 | 3.5% | $32.9M | |
| 9 | Ohio | 29 | 3.4% | $26.3M | |
| 10 | Illinois | 25 | 2.9% | $26.7M |
Most active lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 89 | 10.5% | $203M | |
| 2 | The Huntington National Bank | 48 | 5.6% | $48.1M | |
| 3 | Beacon Bank and Trust | 21 | 2.5% | $30.9M | |
| 4 | Wells Fargo Bank National Association | 20 | 2.4% | $19.3M | |
| 5 | Plains State Bank | 16 | 1.9% | $65.3M | |
| 6 | America First Federal Credit Union | 16 | 1.9% | $39.3M | |
| 7 | Bank of America, National Association | 15 | 1.8% | $29M | |
| 8 | PNC Bank, National Association | 14 | 1.6% | $30.1M | |
| 9 | TD Bank, National Association | 12 | 1.4% | $18.2M | |
| 10 | Gulf Coast Bank and Trust Company | 12 | 1.4% | $7.5M |
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Franchise brands in Child Care Services
22% of acquisition loans in this industry involved a franchised unit. Brands with the most SBA-financed resales:
| # | Brand | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Primrose Schools | 59 | 31.7% | $178M | |
| 2 | The Goddard School | 59 | 31.7% | $132M | |
| 3 | Kids 'R' Kids | 17 | 9.1% | $51.5M | |
| 4 | Kiddie Academy | 16 | 8.6% | $27.2M | |
| 5 | The Learning Experience | 12 | 6.5% | $12.2M | |
| 6 | Children's Lighthouse Early Learning Schools | 9 | 4.8% | $33.6M | |
| 7 | BrightStar Care | 1 | 0.5% | $315K |
Questions buyers ask
How much is a typical SBA loan to buy a business in Child Care Services?
Median $763,300 across 850 acquisition loans (FY2018 to FY2026); the middle half ran $368,750 to $1,619,500. That is 18% higher than the $645,250 median for all SBA-financed acquisitions.
Which lenders finance the most Child Care Services acquisitions?
Live Oak Banking Company (89), The Huntington National Bank (48), Beacon Bank and Trust (21), Wells Fargo Bank National Association (20), Plains State Bank (16).
Are businesses in Child Care Services often franchised?
Yes, often. 22% of SBA acquisition loans in this industry financed a franchised unit. Top brands: Primrose Schools, The Goddard School, Kids 'R' Kids, Kiddie Academy, The Learning Experience.
How risky are SBA loans for buying a business in Child Care Services?
Of 383 seasoned loans (FY2018 to FY2021), 0.8% charged off, 78% lower than the 3.5% benchmark for all SBA acquisition loans.
What loan terms are common for Child Care Services acquisitions?
Median term 10 years, average initial rate 7.55% at approval (blended across years and fixed/variable structures). Terms longer than 10 years usually indicate real estate was included in the purchase.
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