Child Care Services acquisitions in Massachusetts: SBA loan data
Since FY2018, SBA lenders have approved 13 7(a) loans to buy an existing business classified as Child Care Services in Massachusetts, totaling $6.4M. The median loan was $250,000. That is 1.3% of the 963 acquisition loans in Massachusetts.
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How Child Care Services in Massachusetts compares
| Measure | Child Care Services in... | Massachusetts, all industries | Child Care Services, nationwide | All acquisitions |
|---|---|---|---|---|
| Median loan | $250,000 | $410,000 | $763,300 | $645,250 |
| Middle half of loans | $135,000 to $661,500 | $175,000 to $1,041,000 | $368,750 to $1,619,500 | $283,000 to $1,465,000 |
| Average initial rate | 7.82% | 7.34% | 7.55% | 7.76% |
| Median term | 10 years | 10 years | 10 years | 10 years |
| Charge-off rate (seasoned loans) | n/a | 3.2% | 0.8% | 3.5% |
| Loans in sample | 13 | 963 | 850 | 48,902 |
The median for loans to buy daycares in Massachusetts is $250,000, below the $410,000 median for all Massachusetts acquisitions, well below the $763,300 median for Child Care Services acquisitions nationwide and well below the $645,250 median for all SBA-financed acquisitions nationally.
The middle half runs $135,000 to $661,500, 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 7.82%, in line with the 7.76% national average.
Too few of these loans are old enough to measure a charge-off rate; the national rate for seasoned acquisition loans is 3.5%.
Loan size distribution
| Loan size | Child Care Services in... | All acquisitions |
|---|---|---|
| Under $350K | 54% | 30% |
| $350K to under $1M | 31% | 33% |
| $1M to under $2M | 15% | 19% |
| $2M and over | 0% | 17% |
Most loans to buy daycares in Massachusetts (85%) were under $1M, and the largest single band is Under $350K at 54%, against 30% of all acquisition loans.
Bands are fixed dollar ranges chosen for comparison. They are not SBA program limits.
Lender concentration
Santander Bank, National Association made 38% of loans to buy daycares in Massachusetts, and the top three lenders together made 69%. 1 of the 7 lenders involved made three or more. Only 1 lender has repeat experience here. That is a rough guide to how many banks have seen this kind of deal before.
Recent activity
In FY2025 and FY2026 combined, 6 loans to buy daycares in Massachusetts were approved. Fewer than 10 loans were approved in FY2023 and FY2024, so no change is computed. The median was $175,000, below the $250,000 median across all years.
Child Care Services acquisition loans in Massachusetts by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 1 | $355K | $355,000 | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 3 | $1.3M | $387,900 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 1 | $135K | $135,000 | |
| FY2024 | 2 | $1.8M | $911,700 | |
| FY2025 | 1 | $250K | $250,000 | |
| FY2026 | 5 | $2.6M | $100,000 |
How often do these acquisition loans fail?
Fewer than 20 Child Care Services in Massachusetts 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.
The purchase agreement decides what you bought, not the loan approval.
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Top lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Santander Bank, National Association | 5 | 38.5% | $1.5M | |
| 2 | Live Oak Banking Company | 2 | 15.4% | $2.3M | |
| 3 | The Millyard Bank | 2 | 15.4% | $1.7M | |
| 4 | Northern Bank and Trust Company | 1 | 7.7% | $388K | |
| 5 | Cornerstone Bank | 1 | 7.7% | $248K |
Top franchise brands
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The Goddard School | 2 | 15.4% | $1.7M |
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Questions buyers ask
How much do SBA loans for Child Care Services acquisitions in Massachusetts run?
The median SBA 7(a) loan was $250,000 across 13 loans (FY2018 to FY2026). 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 Massachusetts?
Santander Bank, National Association (5), Live Oak Banking Company (2), The Millyard Bank (2), Northern Bank and Trust Company (1), Cornerstone Bank (1).
How often do Child Care Services acquisition loans fail in Massachusetts?
Fewer than 20 loans in this combination are old enough to measure losses reliably, so no rate is shown. The national benchmark for all SBA acquisition loans is 3.5% (FY2018 to FY2021 cohort).
Are franchised businesses part of Child Care Services acquisitions in Massachusetts?
2 of the 13 loans (15%) involved a franchise brand, most often The Goddard School (2).
How much do you need down for an SBA loan to buy a daycare in Massachusetts?
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 Massachusetts was $250,000, and the middle half ran $135,000 to $661,500.
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 6 loans to buy daycares in Massachusetts in FY2025 and FY2026.
Which banks make SBA loans for a daycare in Massachusetts?
By loan count, FY2018 to FY2026: Santander Bank, National Association (5), Live Oak Banking Company (2), The Millyard Bank (2), Northern Bank and Trust Company (1), Cornerstone Bank (1). Santander Bank, National Association made 38% of loans to buy daycares in Massachusetts. Counts show past approvals only and do not predict whether a lender will approve a particular deal.
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Related
- All Massachusetts acquisitions
- Child Care Services nationally
- Child Care Services in Florida
- Child Care Services in Texas
- Child Care Services in Georgia
- Child Care Services in California
- Child Care Services in New Jersey
- Child Care Services in Colorado
- Child Care Services in North Carolina
- Child Care Services in Pennsylvania
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Small samples move a lot: each loan in this combination is 8% of the count. Industry is the NAICS code the lender recorded. See the methodology.
Cite this data
SBA Acquisition Data, "Child Care Services in Massachusetts: SBA acquisition loan data", https://sbaacquisitiondata.com/state/ma/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/ma/child-care-services-624410.json.