SBA 504 Child Care Center Feasibility Study in Washington

Larger than the national ticket

Washington's child care centers borrow heavily under SBA 504. The median of $1.2 million is 1.54x the nationwide 504 level, and ordinary loans range from $613,500 to $2.5 million. The program logged 28 child care loans, $45.8 million in gross approvals, over FY2017 to FY2026; Washington is 20 among states by count, and inside the state child care ranks 6 of 39. Franchise affiliation is 17.9% of loans. The numbers describe buying or building a center, not leasing one.

King County and development companies

King County has 16 of the loans, Pierce 4 and Snohomish 3, with single loans in Clark, Kitsap, Skagit, Thurston and Yakima. Evergreen Business Capital is listed with 13 loans and $19.4 million, and Northwest Business Development Association with 10 loans and $17.4 million, both present-holder entries in SBA's data, and neither a statement about what any company requires. FY2021 stood out at 5 loans and $10.0 million, and FY2023 at 5 loans and $7.9 million, while FY2025 shows 0 loans and $0 and FY2026 shows 2 loans and $6.4 million.

Limits of the record

Washington's child care cohort cannot carry a cancellation or charge-off percentage, so none is published. The coding also folds in-home child care into the same code as centers, so the figures may include some home-based providers. The industry code combines centers with in-home child care, so the figures may include some home-based providers.

What a Washington child care study must examine

Because the loans are large, the property is the heart of the study. It should show the site, the cost of land and construction, state licensing space rules per child, outdoor play area and parking, and compare the budget with similar centers built nearby. Demand work should count young children, working parents and existing licensed capacity, and should state tuition and the speed at which classrooms fill. Staffing ratios determine payroll, and wages in the Puget Sound area are among the heaviest costs. If a franchise is used, its fees and standards belong in the budget. Slow enrolment in a downside case must not break the payment, and an appraiser should address resale to a different user. Licensing and building codes for child care can add cost after a purchase, so the study should include a plan and budget for any required alterations before opening.