SBA 7(a) Child Care Center Feasibility Study in New Hampshire

Child care in a state of modest loans

New Hampshire child care centers borrow in modest amounts: 50 loans totalling $21.2 million, with a midpoint of $175,000, or 0.45x the national 7(a) midpoint for centers. The middle half falls between $50,500 and $483,025. The state ranks 34 against other states in count, and the class is 7 of 39 in New Hampshire's own mix, a higher place than the national rank suggests. Franchised loans are 6.0%.

Where the loans sit

TD Bank, National Association is the one lender in the table, holding 8 loans worth $2.2 million as SBA now lists them. Rockingham County has 16 loans, Hillsborough 13, Strafford 7, Merrimack 5 and Belknap 4, so the southern tier carries most of the lending. Yearly counts grew from 2 in FY2017 to 7 in each of FY2023, FY2024 and FY2025, and FY2026 shows 6 loans worth $5.9 million, the largest dollar year on record in the table.

Cancellation floors, and a coding limit

For New Hampshire centers, cancellation among approvals through FY2024 is at least 5.4%, and as much as 8.1% if undisbursed loans count as lost. The charge-off figure for this cell is not published, because the funded cohort was too small for SBA's rule; a reader should not substitute zero. One coding limit applies: home-based providers share the industry code that centers use and cannot be pulled apart, so a New Hampshire loan counted here may belong to a home-based provider, not a building-based center.

Licensing, staffing and fill: the New Hampshire test

Child care is a licensing business before it is a real estate one. The study should show the licensed capacity the site can hold under state rules, the age mix of children, and the staff ratios each age group needs, since payroll is the largest cost. Demand should be measured by working-parent households in the draw area and by the waitlists and tuition of nearby centers. Fit-out for a center, with fenced play space, kitchens and restrooms scaled to children, costs more than office space, so itemise it. Coverage must hold at partial enrollment during a slow fill, and with a case where staffing shortages cap enrollment. If the center is bought, test how many families will stay after the sale. The appraisal should price the building for a buyer who would not run a nursery.