Child Care Center Feasibility Study in the Greenville-Anderson-Greer, SC Metro Area

Child care in the Greenville-Anderson-Greer area

Child care centers in the Greenville-Anderson-Greer, SC Metro Area show 36 SBA loans, FY2017 to FY2026, with gross dollars of $36.2 million. Within the area the class holds position 3 of 39, and in a ranking of areas by child care loans it is 52 of 493. A location quotient of 1.45x shows child care weighing more heavily in Greenville-area lending than in lending across the country, and the median loan of $695,000 equals 1.54x the national median for child care, and loans in the central half run between $304,000 and $1.2 million. No metric is called distinctive here.

Programs, franchising and holders

By program, SBA 7(a) accounts for 28 of them and SBA 504 for 8. Franchise affiliation is 30.6%, so a meaningful minority of the centers operate under a brand. Greenville County accounts for 30 of the 36 loans. SBA reports TD Bank, National Association as holding 5 loans under 7(a), worth $1.0 million, as SBA reports it; that figure reports a holding, with no view of the bank's approach implied.

Cancellations and the thin years

Among approvals dated FY2017 to FY2024, 19.4% or more were later cancelled; read that as a floor. A ceiling that would treat undisbursed loans as cancelled stays off the page, as does a charge-off rate: Loan Analytics' own rule withholds both, as the cohorts have fewer than 30 loans. FY2018 shows 6 loans and $4.7 million, FY2021 shows 6 loans and $3.9 million, and FY2022 shows 7 loans and $5.2 million. FY2017 and FY2020 each show 0 loans and $0. FY2019 and FY2023 to FY2026 are blank for lack of loans, not zero.

What a study has to test

The cancellation floor tells a borrower that 19.4% or more of approvals did not close as approved, so a study should settle licensing, the building and the budget before the commitment. It must test enrollment against licensed capacity, staffing ratios and tuition capacity in the specific county, build cost against a loan that often lands near $695,000, and debt service during the ramp from an empty building to a stable census. One coding limit applies: child care in a home and child care in a center are filed under one code, so neither can be pulled out. Which loans count as Greenville-area is settled by project county, on the July 2023 map.