Who we fund
Daycare and Childcare Center Loans for Buildouts, Staffing, and Growth
Yes, daycares, preschools, and childcare centers can get funding. Owners commonly use it to build out space that meets licensing rules, add classrooms, and cover payroll while state subsidy payments are processed.
Get matched: childcare
The reality
Cash-flow challenges we hear every day.
Licensing-driven buildout costs
Childcare spaces need specific square footage, bathrooms, fencing, fire safety, and outdoor play areas. Meeting code is expensive and happens before enrollment.
Strict staff-to-child ratios
Ratios set by state rules mean payroll scales directly with enrollment, and staffing has to be in place before new children can be enrolled.
Delayed subsidy payments
Many centers serve families on state childcare assistance, and reimbursement can lag behind when care is provided.
Enrollment ramp-up for new centers
A new center or classroom takes time to fill, while rent and staff costs start right away.
Best-fit funding
Funding that fits childcare.
SBA loans can fund buildouts, new centers, or buying an existing center, with longer terms that match the time it takes to reach full enrollment.
$50K–$5M‡30–90 days*A line of credit helps cover payroll when subsidy payments are delayed, and you can repay it when reimbursements arrive.
$10K–$500K‡1–3 days*Playground equipment, classroom furniture, kitchen equipment, and vans can be financed on their own collateral.
$10K–$5M‡2–5 days*Buying your building gives stability, since relocating a licensed childcare center is difficult and costly.
$250K–$10M+‡30–60 days*What lenders look for
Typical profile for childcare.
Lenders usually look at licensing status, enrollment and waitlist numbers, revenue history, and the owner's credit and experience. For new centers, a business plan and the owner's background in early education carry weight.
Common uses of funds
- Building out classrooms to meet licensing requirements
- Installing playgrounds and outdoor play areas
- Hiring teachers ahead of new enrollment
- Covering payroll while subsidy payments are processed
- Buying an existing daycare or preschool
- Purchasing vans for pick-up and field trips
Can I get a loan to open a daycare?
Yes, SBA loans are often used for new childcare centers. Expect lenders to ask for a business plan, licensing plans, and your experience in early childhood education.
Can a home daycare get financing?
Licensed home daycares with business bank accounts and steady income can qualify for smaller loans or equipment financing.
Do lenders count subsidy income?
Generally yes. State subsidy payments deposited into your business account count as revenue, though payment timing may be reviewed.
Are there grants for childcare businesses?
Some states and local agencies offer childcare grants or startup funds. These programs vary, so check with your state's childcare licensing or development office.
Funding for childcare, matched in minutes.
- Decisions in as little as 24 hours*
- $10K–$5M+ across 10 products
- No hard credit pull to apply
- One dedicated funding advisor