Child Care Services acquisitions in Texas: SBA loan data
Since FY2018, SBA lenders have approved 124 7(a) loans to buy an existing business classified as Child Care Services in Texas, totaling $233M. The median loan was $1,139,400. That is 3.0% of the 4,080 acquisition loans in Texas.
- Loans, FY2018-FY2026
- 124
- Median loan
- $1,139,400 (middle half $586,000 to $3,228,350)
- Top lender
- Live Oak Banking Company (14%, 17 loans)
- Charge-off, FY2018-FY2021 loans
- 3.3% (all-acquisition: 3.5%)
- FY2026 loans (latest complete year)
- 24 (+140% vs FY2025)
SBA lenders approved 124 7(a) loans to buy a business classified as Child Care Services in Texas from FY2018-FY2026, with a median of $1,139,400 and a middle half of $586,000 to $3,228,350. Live Oak Banking Company made 14% of them. FY2026 had 24 loans, up 140% from FY2025.
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How Child Care Services in Texas compares
| Measure | Child Care Services in Texas | Texas, all industries | Child Care Services, nationwide | All acquisitions |
|---|---|---|---|---|
| Median loan | $1,139,400 | $870,000 | $763,300 | $645,250 |
| Middle half of loans | $586,000 to $3,228,350 | $384,025 to $1,883,250 | $368,750 to $1,619,500 | $283,000 to $1,465,000 |
| Average initial rate | 7.15% | 7.78% | 7.55% | 7.76% |
| Median term | 25 years | 10 years | 10 years | 10 years |
| Charge-off rate (seasoned loans) | 3.3% | 4.8% | 0.8% | 3.5% |
| Loans in sample | 124 | 4,080 | 850 | 48,902 |
The median for loans to buy daycares in Texas is $1,139,400, above the $870,000 median for all Texas acquisitions, well above the $763,300 median for Child Care Services acquisitions nationwide and well above the $645,250 median for all SBA-financed acquisitions nationally.
The middle half runs $586,000 to $3,228,350, against $283,000 to $1,465,000 nationally; the median term is 25 years, longer than the national median of 10 years; the average initial rate is 7.15%, below the 7.76% national average.
Seasoned loans were charged off at 3.3%, below the 4.8% rate for all Texas acquisitions, well above the 0.8% rate for Child Care Services acquisitions nationwide and in line with the 3.5% rate for all acquisition loans.
Loan size distribution
| Loan size | Child Care Services in Texas | All acquisitions |
|---|---|---|
| Under $350K | 15% | 30% |
| $350K to under $1M | 31% | 33% |
| $1M to under $2M | 19% | 19% |
| $2M and over | 35% | 17% |
Most loans to buy daycares in Texas (55%) were $1M or more, and the largest single band is $2M and over at 35%, against 17% 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 14% of loans to buy daycares in Texas, and the top three lenders together made 36%. 11 of the 52 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, 34 loans to buy daycares in Texas were approved. That is 70% more than the 20 approved in FY2023 and FY2024. The median was $1,051,400, slightly below the $1,139,400 median across all years.
Child Care Services acquisition loans in Texas by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 13 | $24.1M | $853,300 | |
| FY2019 | 25 | $42M | $1,126,000 | |
| FY2020 | 9 | $15.2M | $1,180,000 | |
| FY2021 | 13 | $16.8M | $690,000 | |
| FY2022 | 10 | $29.5M | $2,578,050 | |
| FY2023 | 6 | $19.9M | $3,487,100 | |
| FY2024 | 14 | $16.7M | $596,000 | |
| FY2025 | 10 | $13.4M | $818,500 | |
| FY2026 | 24 | $55.8M | $2,216,500 |
How often do these acquisition loans fail?
Of the 60 Child Care Services in Texas acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 2 have been charged off by the SBA, a rate of 3.3% by loan count and 0.7% by dollars. 25 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 in Texas is 5% 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 lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 17 | 13.7% | $48.8M | |
| 2 | Plains State Bank | 16 | 12.9% | $65.3M | |
| 3 | The Huntington National Bank | 12 | 9.7% | $17M | |
| 4 | America First Federal Credit Union | 5 | 4.0% | $14M | |
| 5 | Wells Fargo Bank National Association | 5 | 4.0% | $3.1M |
Top franchise brands
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Primrose Schools | 16 | 12.9% | $48M | |
| 2 | Children's Lighthouse Early Learning Schools | 9 | 7.3% | $33.6M | |
| 3 | Kids 'R' Kids | 9 | 7.3% | $26.6M | |
| 4 | The Goddard School | 5 | 4.0% | $18.3M | |
| 5 | Kiddie Academy | 5 | 4.0% | $11.6M |
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Questions buyers ask
How much do SBA loans for Child Care Services acquisitions in Texas run?
The median SBA 7(a) loan was $1,139,400 across 124 loans (FY2018 to FY2026), with the middle half between $586,000 and $3,228,350. 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 Texas?
Live Oak Banking Company (17), Plains State Bank (16), The Huntington National Bank (12), America First Federal Credit Union (5), Wells Fargo Bank National Association (5). Some lenders repeatedly finance this industry in this state; the counts above show which.
How often do Child Care Services acquisition loans fail in Texas?
3.3% of 60 seasoned loans (FY2018 to FY2021) were charged off, against 3.5% 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 Texas?
45 of the 124 loans (36%) involved a franchise brand, most often Primrose Schools (16).
How much do you need down for an SBA loan to buy a daycare in Texas?
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 Texas was $1,139,400, and the middle half ran $586,000 to $3,228,350.
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 34 loans to buy daycares in Texas in FY2025 and FY2026.
Which banks make SBA loans for a daycare in Texas?
By loan count, FY2018 to FY2026: Live Oak Banking Company (17), Plains State Bank (16), The Huntington National Bank (12), America First Federal Credit Union (5), Wells Fargo Bank National Association (5). Live Oak Banking Company made 14% of loans to buy daycares in Texas. Counts show past approvals only and do not predict whether a lender will approve a particular deal.
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Related
- All Texas acquisitions
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Small samples move a lot: each loan in this combination is 1% of the count. Industry is the NAICS code the lender recorded. See the methodology.
Cite this data
SBA Acquisition Data, "Child Care Services in Texas: SBA acquisition loan data", https://sbaacquisitiondata.com/state/tx/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/tx/child-care-services-624410.json.