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

Small tickets, and a visible cancellation floor

Ohio child care centers borrow modestly under SBA 7(a): the $150,000 median is only 0.39x of the nationwide 7(a) median for child care, and the median is the one distinctive metric in the cell. Half of the approvals fall between $50,000 and $600,000. From FY2017 to FY2026 the program approved 437 loans worth $223.0 million, and Ohio holds 4 among states, while child care is 6 of 39 among Ohio asset classes. Franchise brands took 19.9% of the loans.

Outcome floors

For Ohio child care, cancelled approvals come to 12.7% at the least, rising to 15.5% when loans still undisbursed are counted as cancelled, a gap that measures approvals still undisbursed at the 2026-09-30 data date. Looking at 188 child care loans in that cohort, the charge-off floor is 5.3%, and 2.7% within five years. Both are minimums, and loans still open can raise them. Annual volume ran from 30 loans in FY2019 to 55 in FY2021, with 54 loans and $28.8 million in FY2025.

The Huntington and the rest

The Huntington National Bank holds 204 loans worth $67.6 million, the largest holding by far. Telhio Credit Union Inc holds 21 loans worth $4.9 million, KeyBank National Association 17 worth $13.6 million, Fifth Third Bank 14 worth $7.3 million and First National Bank of Pennsylvania 11 worth $10.3 million. The names come from SBA's present-holder field and carry no inference about lending practice. Franklin County has 125 loans, Cuyahoga 64, Delaware and Hamilton 34 each, and Summit 29. The industry code also contains in-home child care, so family homes cannot be separated from centers.

Ohio child care: where a plan can fail

A study should start with the licensed capacity of the building by age group, the state rules on staff-to-child ratios, and the enrolment each room can realistically fill. It must test local demand from working families, tuition against what they can pay, any subsidy programs that cover part of fees, and the labour pool for teachers. Because the median is small, a study should say if the project converts a leased space or builds new, so lease terms and permits belong in the schedule. Debt service coverage should hold at partial enrolment, and the cancellation floor seen here argues for firm licensing timelines before commitment.