A top-seven class in Arkansas with smaller loans than the nation

Child care centers sit 7 of 39 among Arkansas asset classes, yet 47 loans over FY2017 to FY2026 totalling $32.4 million rank the state only 40 of 53, and a location quotient of 0.89x places the share a little below the national mix. The median loan of $346,600 is 0.77x the national midpoint for centers, and requests span a wide $79,200 to $757,500.

Programs, brands and lenders

SBA 7(a) carried 45 loans and SBA 504 carried 2. Franchise affiliation is 25.5% of loans. Southern Bancorp Bank holds 15 loans worth $19.1 million, while Arvest Bank holds 8 loans worth only $1.8 million, so Southern Bancorp holds much more in dollars. Benton County leads with 13 loans, Pulaski has 8, Washington 6, and Craighead and Hot Spring 4 each, while Faulkner has 3, Greene 2, and Boone, Carroll and Cross 1 each.

Light cancellation, charge-offs withheld

Slippage after approval was mild: at least 5.7% for approvals dated FY2017 to FY2024, and no higher at the ceiling.. Arkansas shows no charge-off percentage because the group of disbursed loans is under 30; that absence reflects missing data and should never be taken for a zero. Volume ranged from 1 loan worth $34,000 in FY2020 to 12 loans and $7.8 million in FY2021, with FY2022 delivering 7 loans worth $10.0 million. FY2017 had 4 loans worth $3.6 million, FY2018 and FY2019 had 3 each, FY2023 had 3 worth $1.6 million, FY2024 had 2 worth $470,000, FY2025 had 7 worth $5.1 million and FY2026 had 5 worth $1.7 million. Annual counts swing widely, so no single year is a safe guide.

Testing an Arkansas child care project

The study should count children by age band inside a short drive, licensed capacity and waiting lists, and the staff pool available at a realistic wage. State licensing rules on square feet per child set the building size, and that drives cost. Enrollment ramp and tuition determine coverage, so coverage should be run at partial enrollment. An appraisal should treat the centre as a special-purpose building and show what it is worth to a different operator.

The industry code for centers also includes in-home child care, so home providers are mixed in with these centers and cannot be separated.

SBA 7(a) and 504 child care center loans in Arkansas

Loans approved, FY2017 to FY2026	47
Gross dollars approved	$32.4 million
Median loan	$346,600
Middle half of loans, from	$79,200
Middle half of loans, to	$757,500
SBA 7(a) loans	45
SBA 504 loans	2
Franchise share of loans	25.5%
Rank among states for child care center loans	40 of 53
Rank of child care center among classes in Arkansas	7 of 39
Location quotient (share of loans against the national share)	0.89x
Median loan against the national median for the class	0.77x

Cancellation and charge-off

Cancelled after approval, FY2017 to FY2024 approvals (a floor)	5.7%
The same, counting loans still undisbursed as cancelled (a ceiling)	5.7%
Charged off to date, FY2017 to FY2021 disbursed loans (a floor)	not reported: fewer than 30 loans in the cohort

Both rates are floors. SBA withholds the status of open loans, so a loan counts as charged off only once SBA reports it; a rate needs at least 30 loans in its cohort and is otherwise not reported.

SBA 7(a) and 504 child care center loans approved in Arkansas, by fiscal year

Fiscal year	Loans	Dollars
FY2017	4	$3.6 million
FY2018	3	$1.1 million
FY2019	3	$969,500
FY2020	1	$34,000
FY2021	12	$7.8 million
FY2022	7	$10.0 million
FY2023	3	$1.6 million
FY2024	2	$470,000
FY2025	7	$5.1 million
FY2026	5	$1.7 million

Most active SBA lenders

SBA 7(a): lenders by loans approved (the current holder of each loan, as SBA reports it)
Lender	Loans	Dollars
Southern Bancorp Bank	15	$19.1 million
Arvest Bank	8	$1.8 million

Where the loans are, by county

County	Loans
BENTON	13
PULASKI	8
WASHINGTON	6
CRAIGHEAD	4
HOT SPRING	4
FAULKNER	3
GREENE	2
BOONE	1
CARROLL	1
CROSS	1

Family child care homes cannot be separated from centers. Shared code: 624410 also holds in-home child care.

Source: U.S. Small Business Administration, 7(a) and 504 loan-level FOIA files (data.sba.gov), as of 2026-09-30; Loan Analytics loan-outcome cell SA-AR-C36.

Related feasibility study pages

Loan Analytics prepares the feasibility study a lender reads before it commits: for a child care center project in Arkansas, financed under SBA 7(a), SBA 504, USDA Business and Industry or a conventional bank loan. Tell us the project and the lender's deadline, and we reply with scope, timeline and fee.

Daniel Smith, MAI

Child Care Center Feasibility Study in Arkansas