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

Wisconsin child care: not a single charge-off so far

The loss record is the notable part of Wisconsin's child care cell. Of the 85 loans funded in that early window, the charged-off share is nil both today (0.00%) and for the first five years (0.00%). That is a measured result and not a withheld one, and it is a minimum because loans can still fail. Cancellation after approval is a floor of 12.5% for FY2017 to FY2024 approvals, or 13.1% counting loans awaiting disbursement as cancelled, so approvals often fall away but those that close have held up.

Sizes, share and standing

From FY2017 to FY2026 SBA put 202 loans, worth $92.4 million, into Wisconsin child care. The median is $240,000, 0.62x the program's median for the class nationwide, and the central half runs from $100,000 to $499,375. Wisconsin ranks twelfth among states on count and child care holds fifth place on its list of 39 classes. Franchising reaches 9.9%, so most centres are independent.

Milwaukee, Madison and the rest

Milwaukee County has 68 loans, Dane 37 and Waukesha 20, with Outagamie at 11. Oconto, Saint Croix and Wood have 5 each, and Kenosha, La Crosse and Manitowoc 4 each. Three counties dominate. Approvals ran at 23 in FY2017 and FY2018, dropped to 11 in FY2022, and peaked at 29 in FY2024.

A mix of banks, a credit union and a nonprofit lender

Byline Bank holds 14 loans worth $18.7 million, U.S. Bank, National Association with 13 loans ($4.8 million), Summit CU with 12 ($3.1 million) and, tied with it at 12 loans, Wisconsin Women's Business Initiative Corporation ($2.0 million) and The Huntington National Bank 11 worth $822,000. The table is a view of portfolios, not of policies. A credit union and a women's business lender sit among the top five, which tells us child care loans here do not come from banks alone.

A coding caution

In this data a family child care home looks the same as a centre, because the industry code also covers in-home care. A share of the 202 loans may have funded a home-based provider rather than a building.

What a Wisconsin centre study has to test

Demand is local and age-specific. The study should count young children within a short drive, how full nearby programs are, their waitlists and what tuition families can pay beside any state subsidy. Staffing ratios drive payroll, and recruiting teachers is a limit on capacity. Licensing and building requirements should be costed. Compare the budget with the $240,000 median and justify a request toward $499,375. Enrolment grows slowly, so repayment should be shown at partial enrolment, and the lease or ownership must outlast the loan.