SBA 504 Child Care Center Feasibility Study in Virginia

Child care center loans in Virginia: size and franchising

The file for Virginia child care centers under SBA 504 holds 44 loans from FY2017 to FY2026 and $54.6 million of gross dollars. From $366,750 to $1.8 million covers the middle half of the Virginia loans, around a median of $950,000. The ratio of the Virginia median to the child care centers median nationwide under SBA 504 is 1.25x, so a typical Virginia loan for child care centers runs bigger than nationwide. Brand affiliation touches 22.7% of the child care centers loans in Virginia.

Virginia comes in at rank 12 nationally for child care centers under SBA 504, and the class ranks 4 of 39 within Virginia. The busiest Virginia year was FY2022, with 9 loans and $10.9 million; and FY2026 lists 5 loans worth $10.9 million. Virginia's 504 child care loans are larger than the national median, so the program's real estate focus shows plainly here; the blended class page, which mixes in 7(a), would blur it.

Most Virginia loans sit with Business Finance Group, Inc., which holds 23 worth $33.3 million. Next come 504 Capital Corporation: 16 loans, $17.7 million in all and Rappahannock Economic Development Corporation: 5 loans, $3.6 million in all. In Virginia, Business Finance Group, Inc. is the lead name on 44 loans, SBA's file recording child care centers loans each holds or held. Prince William holds the most Virginia loans among counties and independent cities, 7, followed by Fairfax at 5 and Loudoun at 5. Further counts include Hampton City 3, Portsmouth City 3 and Virginia Beach City 3.

Outcomes and data limits for Virginia

SBA's Virginia file for FY2017 to FY2024 shows 20.0% or more ended in cancellation; the ceiling, with undisbursed loans included, reaches 28.6%. As for charge-offs, too few Virginia loans were funded, and silence is not a rate. In Virginia the code covers family child care homes and centers alike, so the totals cannot show how many loans were small home providers. Only SBA lending is counted in Virginia.

What a Virginia child care study must show

A 504 child care loan buys or builds a building, so the first question is whether enrollment near Prince William can carry both the payment and the payroll. Teacher pay and turnover set the cost line, and tuition must cover them while first-year enrollment lags licensed capacity. Classrooms, play areas and safety systems frequently outrun the cost of the shell, which is why a loan near $950,000 needs a contractor's budget. Appraisers weigh how few users could take a purpose-built center, which makes a general-use fallback worth showing. List every licensed rival and its waiting list.