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SBA Express Loans for Preschools and Daycare Centers
In 2017, the preschool and daycare industry took in nearly $50 billion in revenue across the U.S., employing more than 1.6 million workers. Plus, the daycare industry is expected to keep growing in the next few years, making it an excellent time for new business owners to get into the market. So
In 2017, the preschool and daycare industry took in nearly $50 billion in revenue across the U.S., employing more than 1.6 million workers. Plus, the daycare industry is expected to keep growing in the next few years, making it an excellent time for new business owners to get into the market. So, if you’re interested in starting, expanding, or refinancing a preschool or daycare center, an SBA Express Loan could be a great way to do it.
Using SBA Loans for Preschools and Daycare Centers
Much like their larger sibling, the SBA 7(a) loan, SBA Express loans can be used for a variety of purposes, including funding working capital, purchasing equipment, and purchasing owner-occupied commercial real estate.
In particular, preschools and daycare center owners can use SBA Express loans to:
Build a new preschool or daycare center. SBA Express loans can cover nearly all expenses associated with construction, including security systems, safety equipment, and even furniture.
Buy out a partner: If you’ve started a daycare center or preschool with a business partner, and they want to retire or move on to a different industry, an SBA Express loan could be a fast and efficient way to buy their stake in the business.
Refinancing business debt: If you have SBA-eligible business debt (i.e., a business loan that was used for legitimate business purposes), that is currently being offered to you on unreasonable terms, you may be able to refinance it with an SBA Express loan.
Purchasing an existing preschool or daycare: If you want to purchase an existing preschool or daycare business, you can do so with an SBA Express loan. You can also use it to purchase an existing structure and upgrade/modify it to better fit your business.
What are the eligibility requirements for SBA Express Loans for preschools and daycare centers?
In order to be eligible for an SBA Express loan, preschools and daycare centers must meet the following criteria:
- Be a for-profit business
- Be located in the United States
- Have a tangible net worth of less than $15 million
- Have an average net income of less than $5 million after taxes for the past two years
- Be able to demonstrate a need for the loan proceeds
For more information, please visit the SBA Express Loan page on the SBA website.
What are the advantages of SBA Express Loans for preschools and daycare centers?
SBA Express loans offer a variety of advantages for preschools and daycare centers, including the ability to:
- Build a new preschool or daycare center
- Buy out a partner
- Refinance business debt
- Purchase an existing preschool or daycare
In addition, SBA Express loans are one of the fastest ways for a business to get SBA financing, with loan amounts up to $350,000 and relaxed credit score requirements.
For larger preschools or daycare centers, the SBA 7(a) loan offers amounts up to $5 million, and the SBA 504 loan has a maximum loan amount of $5.5 million and is intended only for the purchase or construction of owner-occupied commercial real estate.
For more information, please visit https://sbaexpress.loans/blog/preschool-and-daycare-loans.
What are the disadvantages of SBA Express Loans for preschools and daycare centers?
The main disadvantage of SBA Express Loans for preschools and daycare centers is that they have a maximum loan amount of $350,000, which may not be enough for larger preschools or daycare centers. Additionally, SBA Express loans have stricter credit score requirements than SBA microloans, so those with lower credit scores may not be eligible.
How long does it take to get approved for an SBA Express Loan for preschools and daycare centers?
The SBA Express Loan program is designed to provide a fast turnaround time for loan approvals. Generally, you can expect to receive a decision within 36 hours of submitting your application. However, the exact timeline will depend on the complexity of your application and the amount of paperwork required.
For more information, you can visit the SBA Express Loan page on the SBA website.
What documents are required to apply for an SBA Express Loan for preschools and daycare centers?
To apply for an SBA Express Loan for preschools and daycare centers, you will need to provide the following documents:
- Business tax returns for the past three years
- Personal tax returns for the past three years
- Business financial statements for the past three years
- Personal financial statements for the past three years
- Business license
- Business plan
- Business debt schedule
- Personal guaranty
- Collateral documents
For more information, please visit SBA Express Loans for Preschools and Daycare Centers.
Other SBA Loan Options for Preschools and Daycare Centers
SBA Express loans are one of the fastest ways for a business to get SBA financing, but they’re not the only game in town. Smaller preschools or daycare centers may want to opt for an SBA microloan, which offers amounts of up to $50,000 and has significantly relaxed credit score requirements. In comparison, larger preschools or daycare centers may want to look to the SBA 7(a) loan, which offers amounts up to $5 million, or even the SBA 504 loan, which has a maximum loan amount of $5.5 million and is intended only for the purchase or construction of owner-occupied commercial real estate.