Child Care Center Feasibility Study in Mississippi

Small tickets, all through 7(a)

Mississippi child care lending is built entirely on the 7(a) program: all 48 loans, with none under 504. The cell spans FY2017 to FY2026 and carries $16.6 million. The median loan of $277,600 is 0.61x the national class median, and half the loans are between $84,975 and $557,875. Mississippi is 39 of 53 among states, the class sits 6 of 39 in its own mix, and a location quotient of 0.89x shows a share just under the national one. Nothing in the cell sits far from the class nationally, so this page works as a map of the lenders and of how small the loans are.

Local banks lead

Community Bank of Mississippi holds 13 loans and $6.7 million. The Citizens Bank of Philadelphia has 6 loans and $2.7 million, BankPlus has 6 and $772,400, and Trustmark Bank has 5 and $632,300, the last two with very low averages. No franchise loans appear in the cell. Hinds County has 18 loans, the largest share by far, followed by Harrison with 6, Rankin with 4 and Forrest with 3.

Volume and cancellations

FY2018 was the busiest year with 11 loans and $4.5 million, and FY2020 the quietest with 2 loans and $642,900. FY2023 brought 5 loans and $2.3 million. Cancellation after approval shows a floor of 7.7% through FY2024, with an identical ceiling. Mississippi shows no loss rate, as its funded cohort holds fewer than 30 loans.

Testing a Mississippi centre

Because the loans are small, many of these projects are leased spaces and conversions, and the study should say so. Demand is the first test: young children within a short trip, current licensed capacity, and the fees parents in the area can pay. Staffing ratios and wages drive the budget, so teacher pay and turnover need explicit lines. Licensing and fire code requirements for the building should be checked before a lease is signed. Show coverage across a slow fill, then add a second case if subsidy payments arrive late. Without much real estate to appraise, a lender will lean on guarantees and the operator's record.

A coding limit

In-home family care is filed in the same code as centres, so the cell cannot separate them.