Child Care Center Feasibility Study in the Chicago-Naperville-Elgin, IL-IN Metro Area

422 child care center loans in Chicago

Approved dollars of $328.7 million back 422 child care center loans in the Chicago area, FY2017 through FY2026. A middle-of-the-road loan is $377,000; the middle half covers $150,000 to $910,700. Compared with the national median for child care center, Chicago, IL stands at 0.83x, which is below it.

Chicago-Naperville-Elgin ranks 2 of 493 for child care center

Counting Chicago-Naperville-Elgin by program, 7(a) has 330 loans and 504 has 92, so 7(a) leads. The 330 7(a) loans around Chicago have room for working capital; the 92 504 loans stay with fixed assets. The franchise share, 20.1%, shows how much of the Chicago class is branded. The class holds 3 of 39 among Chicago industries, and Chicago, IL holds 2 of 493 among areas for child care center. 1.35x is the Chicago, IL quotient: the class is tilting Chicago lending toward the class more than the nation does, which cuts in both directions. The leading counties lead: Cook County, IL (256), DuPage County, IL (37) and Will County, IL (35) loans. Chicago, IL is not a one-state market: IL, IN all fall inside it.

Floors and holders for child care center in Chicago

By year, FY2025 tops the series with 61 loans and $45.9 million, while FY2019 trails with 28 and $29.7 million. In Chicago, IL, 7(a) loans sit mostly with The Huntington National Bank (49 loans, $21.0 million); Byline Bank (27 loans, $27.3 million); U.S. Bank, National Association (26 loans, $15.8 million). A child care center borrower in Chicago should see that Byline Bank leads on dollars and The Huntington National Bank on loans. The Huntington National Bank shows 49 loans just as SBA names it holder; the $21.0 million says nothing about lending standards. For 504, SomerCor 504, Inc., 47 loans, $32.0 million and Small Business Growth Corporation, 36 loans, $34.8 million lead the Chicago list. Cancellation after approval is 15.1% at minimum and 18.6% at most, for Chicago approvals of FY2017 to FY2024. The $328.7 million Chicago-Naperville-Elgin record carries no charge-off rate, as the matching cohort is small, and the blank is not zero.

The Chicago study: demand, cost, coverage, appraisal at $910,700

Revenue around Chicago rests on the waiting list a new center can expect, the local share of working parents and the staffing ratios that licensing sets, built from the ground up, not from 422 past loans. A sound Chicago budget lists safety upgrades, a payroll that starts before enrollment fills and classroom furnishings, then tests each line against Chicago comparables. Coverage in Chicago is tested at $377,000, $150,000 and $910,700 alike, because the file spans that range. The appraiser probes Chicago, IL collateral too, namely the licensed building, enrollment goodwill and the land; a Chicago study anticipates each. 422 Chicago-Naperville-Elgin loans show what was financed, not what will be, so the study judges the next project on its own facts.

Limits behind 422 Chicago-Naperville-Elgin loans

By project county, Chicago claims 422 loans. Cook County, IL and the other counties of Chicago are matched by name to the July 2023 delineation. SBA's code does not divide Chicago centers from in-home care; the 422 loans here blend both. Rates in Chicago name their own cohort years here in Chicago, IL, so cancellation and charge-off differ in (median $377,000) span.