Child Care Center Feasibility Study in the Des Moines-West Des Moines, IA Metro Area

Des Moines child care: a strong class with large tickets

Child care is a prominent class in Des Moines-West Des Moines: the location quotient is 1.76x, the class ranks 4 of 39 locally, and the metro is 51 of 493 for child care loans. The 38 loans add up to $27.4 million, and a median of $423,500, 0.94x the national figure, means tickets are close to the national middle while the class itself weighs far more than nationally.

Programs, amounts and counties

The central half runs from $134,825 to $710,750. The program mix is notable: 23 loans are 7(a) and 15 are 504, so 504 is a sizable share of the cell. Franchise units are 15.8% of loans. No lender has enough loans to be named. Polk County supplies 26 of the loans and Warren County 5.

The page prints an empty year: FY2026 shows 0 loans and $0. Other printed years are 5 loans in FY2018 ($1.7 million), 6 in FY2021 ($4.6 million) and 6 in FY2023 ($8.3 million). Seven more years stay unpublished, and so do the two outcome rates. The industry code also covers child care run from homes, so some rows are not centers. A withheld value is not a zero, but the zero in FY2026 is real.

Why the location quotient matters to a new center

A class that weighs this much in local lending already has many centers financed with SBA help, so a new center has to show where the unmet demand is. The study should map enrollment demand by age group against licensed capacity, compare tuition and hours with nearby centers, and show staffing ratios and wages. A purchase of the building should be valued apart from the operating business.

Taken together, the figures show a class that carries real weight in local SBA lending and uses both programs. A new applicant should read that two ways. The record gives reference points, and it also means the study must show why another center is needed at its address and how its tuition, hours and quality compare. Licensed capacity, staffing and enrollment ramp are the core tests, and the 15.8% franchise share means most centers are independents.

Coverage of the debt should be tested against a slow enrollment ramp, with licensing and inspection timelines in the schedule. The appraiser will test income against the forecast. The history shown promises no outcome.