Tap to get financing
SBA 504 Loans
SBA 504 Loans
Loan usesRequirementsDown paymentsRates and costsCalculatorApplication processCompare SBA loansSBA 504 RefinancingApplication ChecklistClosing ChecklistLoan AssumptionFrequently Asked Questions
Requirements Application process Calculator Blog
About
About usContact us
Get financing
Close sba504.loans is an independently owned and operated website and has no government affiliation. We are not the Small Business Administration and are not a lender. If you are trying to reach the SBA click here to be redirected.
Newly Published
Aug 26 at SBA 504 Loans
What Is SBA Form 159?
Aug 26 at SBA 504 Loans
What Is the Small Business Administration?
Aug 26 at SBA 504 Loans
What Is SBA Form 770?
Explore the Janover Network
Mar 27 at Multifamily Loans
Multifamily Minute Reader Reflections: Interest Rate Outlooks
Mar 24 at Multifamily Loans
The Best 3 Multifamily Loans for Affordable Housing in 2023
Mar 20 at Multifamily Loans
Multifamily Minute Reader Reflections: How Will Bank Failures Impact Multifamily?
Was This Article Helpful?
SBA 504 Loan Guide
Last updated on Feb 19, 2023
2 min read

SBA 504 Loans for Preschools and Daycare Centers

Child care is a huge industry in the US. It has become increasingly difficult for a single parent to earn enough to support an entire family, so more children are being placed in day care centers, or being enrolled in preschools when they come of age. Day care centers alone generated $53 billion in

Better Financing Starts with More Options Start Your Application and Unlock the Power of Choice. Click Here to Get Quotes →$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1M offered by a Credit Union at 5.1%Click Here to Get Quotes

Can Preschools and Day Care Centers Be Funded with SBA 504 Loans?

Child care is a huge industry in the US. It has become increasingly difficult for a single parent to earn enough to support an entire family, so more children are being placed in day care centers, or being enrolled in preschools when they come of age. Day care centers alone generated $53 billion in revenue in 2018, making this area prime for entrepreneurial expansion.

Finding the funding to expand your daycare center doesn’t have to be difficult— and the SBA 504 loan can be a great option to get the financing you need. SBA 504 loans can be used to fund the purchase of real estate, as well as the purchase or construction of buildings, and the retrofitting of existing buildings to suit your purpose. These loans can also give you the funding necessary to invest in important equipment, such as playground equipment, food service equipment, classroom equipment like tables and chairs, and more.

SBA 504 loans can be used to fund day care centers and preschools. However, the funds cannot be used for working capital, so supplementing with another business loan may be necessary.

We’re here to help you get the commercial financing you need. Simply fill out the form below for a risk-free consultation and a free SBA loan quote!

Related Questions

What are the eligibility requirements for SBA 504 loans for preschools and daycare centers?

The eligibility requirements for SBA 504 loans for preschools and daycare centers are as follows:

  • The business must be a for-profit, small business as defined by the SBA.
  • The business must occupy at least 51% of the project and must use the loan proceeds for the acquisition, construction, or renovation of a commercial property.
  • The business must create or retain at least one job for every $65,000 of SBA 504 loan funds.
  • The business must have a tangible net worth of less than $15 million and an average net income of less than $5 million after taxes for the preceding two years.

For more information, please visit SBA 504 Loans for Preschools and Daycare Centers and Eligible and Ineligible Industries for SBA 7(a) Loans.

What are the benefits of SBA 504 loans for preschools and daycare centers?

SBA 504 loans can be used to fund the purchase of real estate, as well as the purchase or construction of buildings, and the retrofitting of existing buildings to suit your purpose. These loans can also give you the funding necessary to invest in important equipment, such as playground equipment, food service equipment, classroom equipment like tables and chairs, and more.

SBA 504 loans can also be used to fund day care centers and preschools. However, the funds cannot be used for working capital, so supplementing with another business loan may be necessary.

For more information on SBA 504 loans, please visit https://sba504.loans.

What are the terms and conditions of SBA 504 loans for preschools and daycare centers?

The SBA 504 loan is intended for the purchase or construction of owner-occupied commercial real estate. It has a maximum loan amount of $5.5 million and can be used to fund the purchase of real estate, as well as the purchase or construction of buildings, and the retrofitting of existing buildings to suit your purpose. These loans can also give you the funding necessary to invest in important equipment, such as playground equipment, food service equipment, classroom equipment like tables and chairs, and more. Funds cannot be used for working capital.

The SBA 504 loan has a fixed interest rate and a 10-20 year term. The loan is typically structured with a 50% loan-to-value (LTV) ratio, with the other 50% coming from a conventional lender. The SBA 504 loan also requires a 10% down payment from the borrower.

For more information on SBA 504 loans, please visit https://sba504.loans.

How can preschools and daycare centers apply for SBA 504 loans?

Preschools and daycare centers can apply for SBA 504 loans to fund the purchase of real estate, as well as the purchase or construction of buildings, and the retrofitting of existing buildings to suit their purpose. These loans can also give you the funding necessary to invest in important equipment, such as playground equipment, food service equipment, classroom equipment like tables and chairs, and more. However, the funds cannot be used for working capital, so supplementing with another business loan may be necessary.

For more information on SBA Express loans, which can be used for a variety of purposes, including funding working capital, purchasing equipment, and purchasing owner-occupied commercial real estate, please visit www.sbaexpress.loans/blog/preschool-and-daycare-loans.

What documents are required to apply for SBA 504 loans for preschools and daycare centers?

When applying for a 504 loan, you’ll need to provide the CDC and your lender with a very wide range of documentation. We have included the most commonly required documents below:

  • Business tax returns for the previous three years
  • Personal tax returns for the previous three years
  • Personal history statement
  • Personal financial statement
  • Personal budget analysis
  • Business financial statements for the previous three years
  • Business debt schedule
  • If you are applying for a loan for a hotel or motel, you will need:
    • Revenue and expenses breakdown for the past year (month to month)
    • Occupancy percentage and average daily rate information for the previous year (month to month)
    • Occupancy percentage and average daily rate for the area
    • Your hotel projection worksheet
  • Interim financial statement (signed and dated, and including balance sheet and income statement dated within the previous two months)
  • Accounts receivable aging (dated within the previous two months)
  • Accounts payable aging (dated within the previous two months)
  • Complete business plan
  • One year of financial projections with assumptions
  • Purchase agreement
  • Written estimate from a contractor if the loan is for construction
  • If this is a franchise, you will need a letter of intent from the franchisor and a FUOC and franchise agreement
  • If you are buying another business, also include:
    • The business owner’s tax returns for the previous three years
    • Interim finance statement dated within the last 60 days
    • Signed purchase agreement with cost breakdown, amendments, etc.
  • If you are using gift funds, you will need to provide a gift letter
  • Previous government financing schedule
  • Environmental impact questionnaire
  • Application certification an authorization
  • Documents pertaining to the ownership of other businesses and their finances (if applicable)
  • Copy of loan agreement and SBA authorization if you have another SBA loan
  • If you are refinancing a loan, you will need:
    • Copy of the original debt documentation
    • Your original purchase agreement, including settlement sheet,

For more information, please visit https://sba504.loans/application-checklist.

Tags
  • SBA 504 Loan
  • SBA 504 Loans
  • SBA 504 Financing
  • SBA 504 Loans for Funeral Homes
  • SBA 504 Loans for Preschools
  • SBA 504 Loans for Daycare Centers

Getting a small business loan should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →
Janover logo

SBA 504 Loans is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Multifamily Today, Commercial Real Estate Loans, SBA7a Loans, CMBS Loans, Apartment Loans, HUD Loans, HUD 221d4 Loan, HUD 232 Loan, HUD 223f Loan, HUD 223a7 Loan, SBA Express Loans, SBA 504 Loans, and OpportunityZones Help.

Janover Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487

[email protected]

Site Information

Privacy Policy
Terms of Use

This website is owned by a private company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We are a technology company that uses software and experience to bring lenders and borrowers together.

All users should perform their own due diligence and research. Nothing on this website is an offer or a solicitation for a loan. This website does not endorse or charge you for any service or product. None of the information on this site constitutes legal advice. We are not affiliated with the Small Business Administration (SBA). If you need to visit the SBA directly please click here: sba.gov

Click here for our Advertiser Disclosure.

Copyright © 2023 Janover Inc. All rights reserved.