Child Care Center Feasibility Study in the Salt Lake City-Murray, UT Metro Area

Child care in the Salt Lake record

Salt Lake City-Murray puts child care centers ninth locally, 9 of 39, and 40 of 493 nationally. A location quotient of 0.83x sits below the national share, which tells us this is not a child care stronghold in SBA lending. Yet 60 loans and $45.4 million were booked from FY2017 to FY2026, a midpoint of $519,400 at 1.15x the national figure, and central loans from $134,300 to $941,825: sizable investments for a service business.

Utah borrowers used 7(a) for 46 loans and 504 for 14; franchise flags cover 10.0%. Home-based care is inside the same code, which means the family homes of the trade cannot be separated from centers; a Salt Lake center should be studied against comparables of its own kind.

Two credit unions lead

Two holders appear. Mountain America FCU is listed with 8 loans and $2.0 million; America First Federal Credit Union follows at 7 loans, though its $4.6 million is the larger sum. Both are credit unions that SBA lists as current holders, a detail worth a borrower's note; the entries imply nothing about either institution. No county rows appear for this cell.

Salt Lake child care shows a cancellation floor of 13.3% on FY2017 to FY2024 approvals. Its ceiling and charge-off rate come out thin, so SBA holds them back, and neither equals zero. Four years print: FY2017 brought 8 loans and $3.8 million, FY2018 brought 6 and $2.9 million, FY2021 brought 7 and $8.7 million, FY2022 brought 8 and $5.5 million. FY2021 shows the largest dollar total, which reflects a few big tickets. Everything from FY2023 forward is held back, so recent lending is invisible here. A Utah loan counts toward the metro when its county is placed inside it by the July 2023 delineation.

Child care in Salt Lake: the study's checklist

A center study counts children of working age within the draw, existing licensed capacity and the staffing ratio that drives payroll. It costs the building or renovation, outdoor space and licensing against the $519,400 midpoint, and it shows tuition supporting debt service coverage at stabilized enrollment. The appraisal values the operating center with its real estate. Daniel Smith, MAI, stands behind each Loan Analytics report, and no approval is part of the offer.