SBA 504 Child Care Center Feasibility Study in North Carolina

The North Carolina child care center (SBA 504) book at a glance

For child care center projects in North Carolina, SBA recorded 50 approvals, $63.8 million in gross dollars, in North Carolina through SBA 504 over FY2017 to FY2026. Among the states, North Carolina sits at 9 for child care center loans under SBA 504 on count, while within North Carolina the class holds spot 2 of 39. Typical size: $963,000. Compared with child care center (SBA 504) lending in the rest of the nation, North Carolina runs at 1.27x on that median, a bigger ticket profile. The middle half of North Carolina approvals fall from $381,000 to $2.0 million. Franchised clients account for 38.0% of the 50 loans. At $963,000, the North Carolina median is not an outlier among 50 loans; for North Carolina, read the named lenders and local spread instead.

Where the North Carolina loans sit

The certified development companies holding the most North Carolina child care center loans are Business Expansion Funding Corporation (42 loans, $54.5 million). SBA lists each loan's present holder, so these names are today's holders. By county, Wake with 15, Mecklenburg with 9, Gaston with 3 and Iredell with 3 top the child care center approvals in North Carolina. The yearly pattern for North Carolina is clear: FY2024 was the high point, with 9 loans and $10.1 million approved, while FY2026 shows 5 loans and $7.6 million; in FY2017, where the record starts, there were 4.

North Carolina: floors for cancellation and loss, with one child care center coding caveat

At least 17.9% of North Carolina's FY2017 to FY2024 child care center loans were cancelled once approved; the high-water mark that adds undisbursed loans is 33.3%. On North Carolina child care center loans disbursed from FY2017 to FY2021, the 50 loans leave a charge-off cohort too small to report; we give no North Carolina number and imply no zero for child care center. Readers should treat these North Carolina rates, drawn from 50 loans, as minimums, not as final outcomes. One coding limit applies North Carolina child care center totals: any North Carolina home child care operation or an institutional facility appear alike in the data, since the same code covers both.

Questions a child care center (SBA 504) study in North Carolina must pass

Because the 50 North Carolina approvals here are 504 financings that combine a North Carolina certified development company with a separate senior child care center lender, each is built around owned North Carolina real estate and long-lived child care center equipment, and the study must show a purchased or built child care center project able to carry both layers of debt. Demand for a North Carolina child care center depends on the number of children of care age and working households nearby, beside existing centers. State licensing rules on space per child, outdoor space and safety features shape child care center costs in North Carolina. Debt service coverage for North Carolina child care center needs to be tested at the $963,000 median and again near $2.0 million, the top end of the North Carolina middle half, with a slower child care center case next to both. An appraisal must read enrolment ramp-up and teacher cost, so the study gives each. A borrower that approaches Business Expansion Funding Corporation should read its 42 loans here as context only, because SBA's totals describe loans, not any requirements.

Loan Analytics reads the 50 North Carolina approvals as SBA's North Carolina records, not a prediction for any child care center project; a study signed by Daniel Smith, MAI, tests the child care center's North Carolina conditions directly, and North Carolina approvals promise nothing.