Record demand for more child care facilities continues nationwide, almost four years after pandemic shutdowns created a shortage. This month, Seedcopa data shows that SBA 504 loans are a growing part of the solution.
Our records show that from 2016 to 2023, Seedcopa and its lending partners funded 11 loans in the child care and day care industry. But this year, alone, we’re on track to fund 4 more – and counting! So far this year’s loans span Berks County, Chester County, Luzerne County and Montgomery County.
All are SBA 504 loans, with capital provided to help businesses expand to multiple facilities, improve their existing facility, purchase a previously leased facility, finance a change in ownership, or even refinance high interest commercial mortgages.
“We consider ourselves pretty fortunate to do the work we do, but it’s particularly rewarding to be responding to a major demand in the marketplace and supporting a need that affects our families and neighbors,” said Seedcopa Managing Director Sherwood Robbins. “A key goal of SBA 504 loans is to create jobs in our communities, and in this case, there are many jobs to provide.”
According to market researcher IBISWorld, in 2021, “worn-out parents sought to enroll their children in day care as in-person working became more common, but many day care services that closed in 2020 remained shuttered in 2020. Those that did open faced severe staff shortages, limiting the number of children they could care for. Industry revenue has sunk at a CAGR of 0.1% to reach $65.1 billion, despite a rise of 0.5% in 2023 alone.”