Child Care Center Feasibility Study in Oklahoma

Oklahoma child care: franchise-heavy and a top class in the state

Child care is one of Oklahoma's leading SBA classes. Within Oklahoma it ranks 4 of 39 classes by loan count; a location quotient of 1.21x shows Oklahoma lenders putting a bigger share of SBA approvals into child care than the national book does. Over FY2017 to FY2026 there were 103 approvals worth $86.0 million, and Oklahoma ranks 25 of 53 among states for the class. Measured against the Oklahoma book and against centers nationally, Oklahoma's center median and its two floors are each too close to call distinct, so Oklahoma's cell is defined by structure instead: franchise systems sit behind 27.2% of loans, a high share for a class usually run by independents.

The median Oklahoma loan was $350,000, or 0.77x the national median, and the middle half ran from $147,500 to $799,000. Approvals were 18 in FY2023 worth $17.2 million, while FY2021 saw 8 loans worth $15.8 million, a year of fewer but larger deals.

SBA 7(a) carries 84 loans and SBA 504 19. Rural Enterprises of Oklahoma, Inc. holds 11 of the 504 loans, worth $23.5 million, which makes it the main route for a center that wants to own its building. On the 7(a) side, BancFirst holds 11 worth $9.4 million, Arvest Bank 7, and Live Oak Banking Company and Great Plains National Bank 5 each, the Live Oak loans worth $10.7 million.

Floors for Oklahoma centers

The cancellation floor deserves attention. Oklahoma lost at least 11.5% of its FY2017 to FY2024 center approvals to cancellation, while the ceiling reaches 15.4% when loans still undisbursed are counted, a wide gap that suggests several recent approvals have yet to fund. Credit losses are nil so far: the 31 Oklahoma loans disbursed in FY2017 through FY2021 carry a 0.00% charge-off floor, and 0.00% inside five years. With a cohort that small, one Oklahoma default would shift the reading.

What an Oklahoma child care study must test

Demand sits mostly in Oklahoma and Tulsa counties: Oklahoma County holds 26 approvals and Tulsa 24, followed by Cleveland at 17 and Canadian at 10. A feasibility study must measure children by age band in the trade area, competing licensed capacity, and the subsidy and private-pay mix the center can expect. For an Oklahoma franchise unit, the study should weigh the brand's fees and build standards against local tuition. Cost should be priced from current construction or renovation bids. Oklahoma tuition must cover the debt payment at a realistic enrollment ramp, not at full capacity, and the Oklahoma appraisal must value the center building as Oklahoma real estate. The SBA code also holds home-based family child care, so these figures combine homes and centers.