Kids are counting on you—and there’s never been a better time to invest in the future. In 2016, there were approximately 8.76 million children enrolled in pre-primary schools in the U.S. And with the growing trend of two parents working full time, the need for child care and preschools is increasing at an incredible rate.

The child care industry is on the rise

Data compiled by First Research estimated that 54,000 commercial buildings belonged to the U.S. child care services industry, which generated $25 billion in 2018.

The heightened demand for high-quality child care has made now a perfect time for entrepreneurs to launch or expand their businesses. Constructing or expanding a preschool will almost certainly require capital to get things up and running. But securing funding can be a confusing and time-consuming venture if you’re unfamiliar with the lending landscape. Here is an overview of some steps you can take to secure SBA financing for a preschool business.

Research various types of loans and lenders

Deciding what type of financing best fits your business goals is crucial, but with so many available loan options, it can be difficult to narrow them down. One thing to look for in a lender is a successful proven track record of recently funded businesses. The Small Business Administration offers a number of specialized funding options to entrepreneurs. Many SBA loans include benefits like lower down payments and interest rates in addition to longer repayment terms compared to conventional loans.

SBA 7(a) loans for preschool and child care businesses

  • Purchasing (or building on) new land
  • Purchasing or expanding an existing business
  • Repairing existing capital
  • Refinancing existing debt

SBA 504 loans for preschool and child care businesses

  • Purchasing land or existing structures
  • Purchasing construction equipment
  • Building new facilities or modernizing existing ones
  • Purchasing improvements (utilities, parking lots)

Define your specific capital needs

Are you purchasing a preschool facility? Or looking to add on to an existing preschool? How will the money be allocated? Answering these types of questions will help you condense your list of loan options to only those best suited to your needs.

Team up with a financial expert

Securing funding to build or expand a preschool is not a one-person job. A consultant can inform you of the best loan options based on your unique goals for the preschool and provide you with a free quote. Working with a lending consultant who knows the ins and outs of the financial industry allows you to put all of your energy into the future of your business without getting bogged down by lending process. Trust the certified financial advisors at Cornerstone Capital Lending, who have more than 50 years combined experience working in the commercial finance industry.

Ready to begin?

If you are interested in securing funding for your preschool venture, contact us today! We are excited to help you get funding for your preschool construction or expansion project in the simplest and fastest way possible. Let us unlock your preschool business’ potential and take it to the next level.