How you finance a childcare purchase shapes what you can afford and how the deal is structured. SBA lending is a common path — but not the only one.
Why SBA loans fit childcare
SBA 7(a) and 504 programs are widely used for childcare acquisitions because they allow relatively low down payments and longer amortization, improving cash flow for owner-operators buying a business and/or building.
Lenders familiar with childcare understand its cash-flow profile and licensing requirements, which smooths approval.
Other paths
Conventional commercial financing, seller financing, and — for the real estate — net-lease investor capital all play roles depending on the deal. A sale-leaseback can also be a financing tool, converting owned real estate into operating capital.
The right structure depends on whether you're buying the business, the building, or both.
Structuring for success
Financing choices interact with deal structure and tax planning. Lining up the right capital before you go under contract strengthens your position and speeds closing.
We help buyers structure deals that are financeable and aligned with their goals.
Find out what your school is worth.
A confidential, no-pressure valuation from a broker who has owned, operated, and sold childcare centers for 30+ years.
