SBA 7(a) Child Care Center Feasibility Study in Arizona

Phoenix-centred, and without a charge-off so far

Arizona's child care picture is overwhelmingly a Maricopa County picture: that single county accounts for 85 of the 116 loans the 7(a) program approved across the decade, which total $77.5 million. Pima follows with 14 and Pinal with 6. Arizona ranks 20 among states, while child care is ranked 11 among 39 classes at home. A median of $418,500 is 1.08x of the national benchmark, and the loans' inner half spans $150,000 to $874,450. Franchise flags mark 18.1% of loans. Unlike some states, the early cohort of 56 funded loans shows no charge-offs, a reading of 0.00% by either measure.

Holders

By count the leader is Wells Fargo Bank National Association, with 8 loans carrying $3.4 million. Enterprise Bank & Trust has 6 loans but $3.8 million, Arizona Capital Source has 6 for $843,400, Live Oak Banking Company has 5 for $6.9 million, and BMO Bank National Association has 5 for $3.8 million. Dollars per loan vary widely across these names. The list reproduces SBA's holder file and grades no one.

Cancellations and caution

Approvals through FY2024 lost at least 11.1% to cancellation, and the harsher ceiling is no higher. A clean charge-off record is encouraging yet incomplete: the loans are still seasoning, and 0.00% is a measurement, not a guarantee.

A study for an Arizona child care loan

A feasibility study here must show that the site draws enough families to fill licensed capacity, and That is a question about particular neighbourhoods, not the metro as a whole. Tally preschool-age children near the site, the pricing and waiting lists of nearby centres, and the share of parents who can pay full tuition. Staffing ratios and wages set the cost structure, so the study needs a payroll schedule that meets licensing and a slower enrolment case. If the loan buys or builds the property, the appraisal must support the value; if it funds a lease and build-out, the lease term should outlast the repayment period. Coverage should be shown at stabilised and at partial enrolment.

Classification caveat: SBA files centre-based care and in-home care together in one category, so a home-based provider will find the dollar figures above blend two business models.