SBA 504 Child Care Center Feasibility Study in Georgia

Georgia child care on the 504 program: large, branded, and costly to close

Child care centers come third in Georgia's SBA class ranking (3 of 39), and Georgia holds fifth place nationally for 504 loans to the class. SBA approved 92 loans between FY2017 and FY2026, amounting to $115.9 million in gross dollars. Loan size is the metric that stands out: a $1.0 million median, 1.35x what 504 borrowers in the class receive nationally, with the central half starting at $728,250 and ending at $1.8 million. Brand affiliation is also reported. Franchised centers make up 41.3% of the loans, so a sizeable portion of Georgia's financed centers operate under a system with its own curriculum, staffing model and fees.

Development companies, counties and annual dollars

In 504 lending a bank finances part of the project and a certified development company arranges the rest, so the lender table names those companies. Capital Partners Certified Development Company holds 32 loans for $43.9 million. Florida Business Development Corporation, despite its name, has 20 Georgia loans worth $27.7 million; Georgia Certified Development Corporation has 15 for $17.6 million; Small Business Access Partners, Inc. has 13 for $17.9 million; and CSRA Local Development Corporation has 5 for $5.1 million. Entries follow SBA's record of current holders. Gwinnett County has 18 of the loans, Fulton 11, Cobb 10, Forsyth 9 and DeKalb 6. Dollars rose from $1.1 million in FY2017 to $17.5 million in FY2022, $22.0 million in FY2025 and $19.0 million in FY2026, a complete fiscal year.

Cancellation, and what is left unsaid

Cancellation after approval is at least 15.2% for approvals through FY2024 and as much as 21.2% if undisbursed loans are included. The early-cohort charge-off rate is omitted on this page since the funded cohort is thin; no figure appears, and none should be assumed, least of all zero.

What a Georgia child care study must show

Because child care is a regulated business, the study should begin with licensing: the capacity the site can be licensed for, the ages served and the staffing ratios that follow. The industry code also holds family child care homes, so the figures here do not isolate centers, and the proposal should define itself as a center or a home-based operation. Demand analysis has to be local: working households with young children within a short drive, the number of licensed seats nearby, tuition rates and waiting lists. If a brand is chosen, the franchise fee, royalty and required curriculum materials belong in the budget. Payroll is the dominant operating cost, so the forecast should model enrollment ramp and teacher retention explicitly, and prove the payment is met at a realistic fill rate. Construction cost should reflect the safety, outdoor and kitchen requirements of childcare use, and the appraiser will want to know whether the building can serve another occupant. With cancellations running high, evidence of site control and permits is part of the case.