For more than 40 years, Market Capital Lending has helped owner-operators open, buy, and expand childcare businesses — part of the $375 million+ we've arranged for our clients. A daycare is a special-use, owner-occupied business, and the SBA is ideal for it: SBA loans can finance the building, the improvements, the equipment, and the goodwill of an existing center in a single loan. We're a veteran-owned, SBA-approved broker who knows the space. Below, here's how daycare financing works.
Why the SBA is built for childcare centers
Childcare is a special-use business — a purpose-fit building plus an operation whose value lies in licensing, enrollment, staff, and reputation. Banks often hesitate on special-use property, but SBA programs finance exactly this, with lower down payments and long terms. Whether you're acquiring an established center with existing enrollment or starting one, an SBA loan can cover the pieces conventional financing won't. (Rates, approval, and terms vary by credit, collateral, loan amount, and underwriting.)
What we finance
We arrange financing for daycare acquisitions, ground-up construction and build-outs, refinances, and franchise centers. For startups and franchises, we can structure higher leverage and working capital to get you open and operating. Buying an existing center? Our business acquisition expertise and complimentary cash-flow analysis help confirm it prequalifies for SBA 7(a) financing.
Why choose Market Capital Lending
Special-use businesses need a lender who understands them. As a veteran-owned, SBA-approved broker with a network of 40–50 lenders, 40+ years of experience, and $375M+ funded, we match your center to the right SBA lender and structure it for approval — including the startup and franchise deals many banks pass on. Start your application or call us.
Frequently asked questions
Can I get an SBA loan to buy a daycare?
Yes. SBA 7(a) and 504 loans are well suited to childcare centers because they finance owner-occupied special-use real estate, build-out, equipment, and goodwill together, with lower down payments than conventional loans.
Can you finance a daycare startup or franchise?
Yes. For startups and franchises we can offer higher leverage — as low as 85–90% financing — plus working capital to help you open and ramp up.
What can daycare financing cover?
Typically the real estate or lease build-out, playground and equipment, licensing-driven improvements, working capital, and the goodwill of an existing center.
What if a bank declined my childcare deal?
That's common with special-use property. With 40–50 lenders, we can often find one that finances daycares and childcare centers.