SBA 7(a) Child Care Center Feasibility Study in Rhode Island

Size and standing of the Rhode Island child care center record

The Rhode Island child care center cell holds 37 loans under SBA 7(a), $12.3 million in all, from FY2017 through FY2026. Rhode Island is 38 among states by child care center loan count, while Rhode Island holds child care center at 6 of 39 among its classes. Rhode Island borrowers took a median of $200,000, which is 0.52x of the figure that child care center borrowers elsewhere receive, in Rhode Island, below the SBA 7(a) norm for child care center. The central half of Rhode Island loans starts at $100,000 and, for child care center, tops out near $350,000; 0.00% of Rhode Island child care center loans carry a franchise flag.

Rhode Island holders and counties

By child care center loans approved in Rhode Island, Beacon Bank and Trust (5; $2.6 million); Santander Bank, National Association (5; $1.7 million) come first. SBA lists each Rhode Island child care center holder as current. Geographically, Providence (23), Kent (8), Washington (3), Bristol (2) and Newport (1) lead Rhode Island child care center lending.

How the child care center pipeline moved

Rhode Island child care center approvals per year: FY2017 3 ($1.0 million), FY2018 1, FY2019 4, FY2020 4, FY2021 3 ($2.3 million); then for child care center in Rhode Island FY2022 4, FY2023 3, FY2024 5, FY2025 8, FY2026 2. The top Rhode Island dollar year, $2.1 million, was FY2025.

How Rhode Island loans ended up

In Rhode Island, no cancellation rate is published for child care center; the Rhode Island cohort is too thin, and silence on child care center is not zero. Charge-offs of Rhode Island child care center loans are withheld: Rhode Island funded too few child care center loans in Rhode Island, so no rate is printed in Rhode Island for FY2017 to FY2021, and the child care center gap is not a zero.

Rhode Island child care centers: what a study must prove

Child care is licensed and ratio-driven. A Rhode Island study should estimate working-parent households in reach, count licensed centers and home providers, and show tuition levels the neighbourhood can bear against staffing at the required ratios. Capacity is set by licensed square footage, so the building plan must meet it. Compare cost with loans around $200,000, show coverage through a slow enrolment build, and note that an appraiser values a center on its income and on its alternative use.

Rhode Island child care: centers and homes blended

Family homes and centers cannot be told apart in this code, so Rhode Island figures mix two different business models; the study should say which one applies.