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

The big tickets are the point

Child care centers in Florida borrow large amounts under SBA 7(a). The median loan is $560,000, which is 1.45x the nationwide 7(a) figure for child care, and the middle half runs from $269,000 to $1.1 million. SBA approved 711 loans between FY2017 and FY2026 worth $629.3 million, and Florida ranks 2 among states for the program. Child care is 4 of 39 among Florida asset classes, and franchise brands account for 15.6% of loans.

Cancellations and charge-offs

Cancelled approvals through FY2024 make up 11.5% at minimum, and 11.7% once undisbursed loans are folded in. Out of 319 loans in the matured cohort that disbursed, at least 2.5% have been charged off so far and 1.9% inside five years. Some of the loans have not yet run their course, which is why these floors are not final. The loan count was highest in FY2025 at 98 loans, while FY2021 had 91 loans and the largest dollar total, $100.0 million. FY2020 was the lowest year, with 49 loans, and the full year FY2026 recorded 67.

Holders and counties

TD Bank, National Association holds 57 loans worth $23.1 million. Four institutions tie at 26 loans: Wells Fargo Bank National Association ($31.3 million), American Momentum Bank ($27.3 million), Gulf Coast Bank and Trust Company ($16.5 million) and Newtek Small Business Finance, LLC ($15.4 million). SBA's listing describes present holders and not their standards. Palm Beach County has 76 loans, Miami-Dade 69, Hillsborough 64, and Broward and Orange 59 each. One coding limit applies: the industry code also holds in-home child care, and family child care homes cannot be separated from centers, so some small loans may reflect a home setting.

What the study must test

A child care project turns on licensing and ratios: how many children of each age group the state lets one teacher supervise, and how many the building can legally hold. The study should test local enrolment demand against existing centers and employer need, tuition levels against what families can pay, the subsidy programs that fill seats, and the staffing cost. With tickets this large, construction or conversion cost, fire and safety code upgrades and outdoor play space deserve full budgets. Debt service coverage must be shown at a gradual fill of licensed capacity, and an appraiser will treat the center as a special-purpose building.