Daycare Center Loans

We are still closing daycare center loans!  Despite the current credit crisis.  This building type is one of our specialties. 

Structuring a daycare center loan typically has a few challenges, including the special use nature of the property, and borrower/management experience.    Due to these concerns and others, many lenders simply shy away from this building type.  The key here is knowing which lenders and banks to work with, that like this segment of the market.  We know who the best banks are, and can help you structure an excellent daycare center loan. 

For example, one of our preferred banks has a loan program geared specifically for daycare.  Benefits include:

• Rates normally in the 6%'s
• NO BANK or SBA Fees! (borrower does have to pay for third party fees like, title & appraisal)
• 90% financing on purchases and 85% on refinances
• 5 year fixed, with a 25 year amortization schedule
• Low prepayment penalties at 5%, 3% 1% 
• Property has to be west of the Mississippi River
• $400,000 minimum loan amount

This is truely of of the best daycare center loans in the nation.  Get pre approved now by filling out the mini commercial loan application. 

Loans for Daycare Centers

Conventional financing for  daycare centers typically consist of a 5 year fixed rate with 20 amortization schedules.   Loan to values on purchases hover at approximately 65% and 60% on refinances.  Most conventional sources are very conservative with daycares and want to see 2 years of tax returns that show a debt coverage ratios of 1.3 to 1.4 compared to an a 1.2 for most building types.   Management will be scrutinized with an emphasis on the borrowers experience in handling business matter beyond the care of children. 

SBA loans for Daycare Centers 

SBA loans can be one of the better ways to finance daycare centers.  First of all, borrowers can put down as little as 15% (85% loan to value) on purchases, compared to conventional financing at around 40% down.   Debt coverage ratios are less convervative as well,  and can go down to 1.1. Future business projection can be used as well to improve historical financial's. 

Many owners are unaware that they can use SBA loans to refinance their Daycare Center.  Loan to values can go as high as 85% when the SBA program is included.  Fixed rates on the SBA 7a loan are 5 years with amortization schedules of 25 years.  504 programs boasts rates fixed for as long as 10 years. 

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