Child Care Services acquisitions in California: SBA loan data
Since FY2018, SBA lenders have approved 54 7(a) loans to buy an existing business classified as Child Care Services in California, totaling $73.9M. The median loan was $876,700. That is 1.0% of the 5,184 acquisition loans in California.
- Loans, FY2018-FY2026
- 54
- Median loan
- $876,700 (middle half $442,500 to $2,067,250)
- Top lender
- Live Oak Banking Company (17%, 9 loans)
- Charge-off, FY2018-FY2021 loans
- 0.0% (all-acquisition: 3.5%)
- FY2026 loans (latest complete year)
- 5 (-62% vs FY2025)
SBA lenders approved 54 7(a) loans to buy a business classified as Child Care Services in California from FY2018-FY2026, with a median of $876,700 and a middle half of $442,500 to $2,067,250. Live Oak Banking Company made 17% of them. FY2026 had 5 loans, down 62% from FY2025.
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How Child Care Services in California compares
| Measure | Child Care Services in California | California, all industries | Child Care Services, nationwide | All acquisitions |
|---|---|---|---|---|
| Median loan | $876,700 | $600,000 | $763,300 | $645,250 |
| Middle half of loans | $442,500 to $2,067,250 | $296,225 to $1,395,000 | $368,750 to $1,619,500 | $283,000 to $1,465,000 |
| Average initial rate | 8.04% | 7.87% | 7.55% | 7.76% |
| Median term | 10 years | 10 years | 10 years | 10 years |
| Charge-off rate (seasoned loans) | 0.0% | 4.1% | 0.8% | 3.5% |
| Loans in sample | 54 | 5,184 | 850 | 48,902 |
The median for loans to buy daycares in California is $876,700, well above the $600,000 median for all California acquisitions, slightly above the $763,300 median for Child Care Services acquisitions nationwide and above the $645,250 median for all SBA-financed acquisitions nationally.
The middle half runs $442,500 to $2,067,250, against $283,000 to $1,465,000 nationally; the median term is 10 years, the same as the national median; the average initial rate is 8.04%, above the 7.76% national average.
None of the seasoned loans were charged off, against 4.1% for all California acquisitions, 0.8% for Child Care Services acquisitions nationwide and 3.5% for all acquisition loans.
Loan size distribution
| Loan size | Child Care Services in California | All acquisitions |
|---|---|---|
| Under $350K | 17% | 30% |
| $350K to under $1M | 44% | 33% |
| $1M to under $2M | 13% | 19% |
| $2M and over | 26% | 17% |
Most loans to buy daycares in California (61%) were under $1M, and the largest single band is $350K to under $1M at 44%, against 33% of all acquisition loans.
Bands are fixed dollar ranges chosen for comparison. They are not SBA program limits.
Lender concentration
Live Oak Banking Company made 17% of loans to buy daycares in California, and the top three lenders together made 39%. 5 of the 28 lenders involved made three or more. Repeat experience is spread across many banks. That is a rough guide to how many banks have seen this kind of deal before.
Recent activity
In FY2025 and FY2026 combined, 18 loans to buy daycares in California were approved. That is 64% more than the 11 approved in FY2023 and FY2024. The median was $965,000, slightly above the $876,700 median across all years.
Child Care Services acquisition loans in California by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 5 | $3M | $840,000 | |
| FY2019 | 5 | $6.4M | $854,400 | |
| FY2020 | 6 | $7.9M | $626,500 | |
| FY2021 | 6 | $6.9M | $1,048,000 | |
| FY2022 | 3 | $6.2M | $899,000 | |
| FY2023 | 6 | $10.5M | $927,450 | |
| FY2024 | 5 | $10.3M | $2,500,000 | |
| FY2025 | 13 | $14.9M | $950,000 | |
| FY2026 | 5 | $7.8M | $981,500 |
How often do these acquisition loans fail?
Of the 22 Child Care Services in California acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), none have been charged off by the SBA. 14 have already been paid in full.
For comparison, Child Care Services in California has none charged off, against the 3.5% average across all SBA 7(a) acquisition loans in the same cohort. 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.
Seller note standby terms and third-party consents are reviewed before closing.
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Top lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 9 | 16.7% | $21.8M | |
| 2 | Plumas Bank | 8 | 14.8% | $11.2M | |
| 3 | United Business Bank | 4 | 7.4% | $8M | |
| 4 | Fremont Bank | 3 | 5.6% | $2.7M | |
| 5 | BMO Bank National Association | 3 | 5.6% | $2.5M |
Top franchise brands
No franchise brands recorded in this combination.
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Questions buyers ask
How much do SBA loans for Child Care Services acquisitions in California run?
The median SBA 7(a) loan was $876,700 across 54 loans (FY2018 to FY2026), with the middle half between $442,500 and $2,067,250. 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 Child Care Services acquisitions in California?
Live Oak Banking Company (9), Plumas Bank (8), United Business Bank (4), Fremont Bank (3), BMO Bank National Association (3). Some lenders repeatedly finance this industry in this state; the counts above show which.
How often do Child Care Services acquisition loans fail in California?
Of 22 seasoned loans (FY2018 to FY2021), none were charged off, against the 3.5% rate for all SBA acquisition loans. With a sample this size, treat the figure as a direction, not a precise rate.
Are franchised businesses part of Child Care Services acquisitions in California?
3 of the 54 loans (6%) involved a franchise brand.
How much do you need down for an SBA loan to buy a daycare in California?
The SBA requires the buyer to make an equity injection, commonly 10% of total project cost, and a lender may ask for more. The SBA file does not record injections, so the figures here are the financed portion: the median for loans to buy daycares in California was $876,700, and the middle half ran $442,500 to $2,067,250.
How long does an SBA acquisition loan take?
For a change-of-ownership 7(a) loan, 45 to 90 days from application to close is typical. It varies by lender and by how quickly third-party reports, such as the business valuation and appraisal, come back. The SBA file records approval dates, not application dates, so this site cannot measure it. Lenders approved 18 loans to buy daycares in California in FY2025 and FY2026.
Which banks make SBA loans for a daycare in California?
By loan count, FY2018 to FY2026: Live Oak Banking Company (9), Plumas Bank (8), United Business Bank (4), Fremont Bank (3), BMO Bank National Association (3). Live Oak Banking Company made 17% of loans to buy daycares in California. Counts show past approvals only and do not predict whether a lender will approve a particular deal.
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Related
- All California acquisitions
- Financing one? How to get an SBA loan to buy a child care center
- Child Care Services nationally
- Child Care Services in Florida
- Child Care Services in Texas
- Child Care Services in Georgia
- Child Care Services in New Jersey
- Child Care Services in Colorado
- Child Care Services in North Carolina
- Child Care Services in Pennsylvania
- Child Care Services in Ohio
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Small samples move a lot: each loan in this combination is 2% of the count. Industry is the NAICS code the lender recorded. See the methodology.
Cite this data
SBA Acquisition Data, "Child Care Services in California: SBA acquisition loan data", https://sbaacquisitiondata.com/state/ca/child-care-services-624410 (data as of September 30, 2026). Source: U.S. Small Business Administration 7(a) loan file, data.sba.gov. Aggregated by SBA Acquisition Data.
The figures on this page are also published as JSON at https://sbaacquisitiondata.com/data/state/ca/child-care-services-624410.json.