What is the SBA loan default rate for Child Day Care Services?

At 11.9%, Child Day Care Services sits below the 15.4% all industry SBA default rate (charged off as a share of resolved loans), moderate default risk relative to other SBA industries. The rate is measured on the resolved loans (paid in full or charged off), loans that have reached a final outcome. 1748 lenders actively fund this industry.

Which SBA program is best for Child Day Care Services?

The SBA 7(a) program is the most commonly used for Child Day Care Services businesses, accounting for the majority of approved loans. The SBA 504 program is popular for larger real estate and equipment purchases.

NAICS 624410Healthcare & Social ServicesLending Growing

How Much Can Child Day Care Services Businesses Get in SBA Loans?

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29,236 SBA loans totaling $15.5B have been approved for child day care services businesses (NAICS 624410). The average approved SBA loan is $529K, which is 55% above avg the $340K national average. 1748 active lenders fund this industry with a 11.9% default rate on the matured 2018-2021 loan cohort.

Moderate default risk11.9% vs 15.4% all industry avg

At 11.9%, Child Day Care Services sits below the 15.4% all industry SBA default rate (charged off as a share of resolved loans), moderate default risk relative to other SBA industries. The capital source prices this risk into rate and structure.

Quick Answer

NAICS 624410 (Child Day Care Services) received 29,236 SBA loans worth $15.5B across 5+ states. Average loan $529K, average term 180 months, 11.9% default rate (resolved loan basis).1748 active SBA approved lenders fund this industry. Most child day care services loans use the SBA 504 program. There are approximately 80,120 U.S. establishments in this industry (Census 2022).

29,236

Total SBA Loans

$15.5B

Total Volume

$529K

Avg Loan Size

55% above avg

1,748

Active Lenders

180 mo

Avg Term

38% above avg

388,540

Jobs Supported

Is SBA Lending Growing for Child Day Care Services?+39% growth

926

943

982

921

747

995

904

972

1,187

1,353

$726.1M

$764.1M

$782.0M

$824.9M

$702.3M

$945.0M

$822.6M

$823.1M

$909.3M

$1.1B

Which SBA Program Do Child Day Care Services Businesses Use Most?

SBA 7(a)23,923 (82%)

SBA 5045,313 (18%)

What Is the Best SBA Loan for Child Day Care Services?

SBA 504

18% of child day care services loans use this program, ideal for real estate and major equipment purchases

Industry avg loan: $529K

Typical term: 180 months

Historical avg rate: 7.14%

1748+ lenders active in this industry

Default rate (2018 to 21 matured cohort): 11.9%

Where Are Child Day Care Services SBA Loans Most Common?

3,376 loans

$2.8B

2,664 loans

$1.8B

2,170 loans

$1.2B

1,705 loans

$1.4B

1,313 loans

$481.2M

SBA Lending Activity in Child Day Care Services

1,748 SBA lenders have funded 29,236 loans to child day care services businesses (NAICS 624410). Which lender approves your deal depends on your location, loan size, credit profile and time in business, not on who funded someone else. PeerSense makes the introduction.

Loans funded

29,236

Active lenders

1,748

Total volume

$15.5B

Avg loan size

$529K

Browse all SBA lenders

Child Day Care Services Industry Context

U.S. Establishments

80,120

U.S. Census Bureau · 2022

U.S. Employment

27,722,000

BLS · 2026

SBA Penetration

36.49%

SBA loans per establishment

Talk to PeerSense

PeerSense sources capital for child day care services businesses. The capital source sets the terms. No upfront fee. Talk to PeerSense. Referral fee at closing.

Retainers

10%

Down with SBA 7(a)

25yr

Terms Available

Talk to PeerSense (317) 452-6990

Talk to PeerSense about financing a Child Day Care Services business.

Tell us your loan amount and use of funds. PeerSense sources capital. The capital source sets the terms.

SBA 7(a) / 504: PeerSense will reach out. No obligation.

How big is your deal?

Where are you in the deal?

Equity or down payment ready

Credit score

Timeline to close

SBA already on the books?

What best describes your company

Liquid funds available outside this deal

Where is the property or business

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Referral fee realized at closing · Or call (317) 452 6990

How Does SBA Lending Work for Child Day Care Services Businesses?

Across all SBA loan programs, 29,236 loans have been approved for businesses classified under NAICS 624410 (Child Day Care Services), representing $15.5B in total capital deployed. The average approved loan of $529K is 55% above avg the national SBA average of $340K, with typical repayment terms of 180 months.

SBA lending for child day care services is accelerating. Loan volume has grown approximately 39% over recent fiscal years. This upward trajectory suggests expanding access to capital and growing lender confidence in this sector. Peak activity occurred in FY2025.

The industry sees a balanced mix of SBA programs, with 18% of loans using the 504 program for fixed asset acquisition and the majority using 7(a) for its flexibility across working capital, equipment, and business acquisition uses. SBA 7(a) loans offer up to $5M with terms up to 25 years for real estate.

Talk to PeerSense about a child day care services file. The capital source sets the terms. The desk fee is paid at closing, never upfront.

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Frequently Asked Questions: Child Day Care Services SBA Loans

What is the average SBA loan size for child day care services businesses?

Based on 29,236 approved SBA loans, the average loan size for child day care services (NAICS 624410) is $529K. This compares to the national SBA average of $340K across all industries.

Which SBA loan program is best for a child day care services business?

SBA 504 is the most commonly used SBA program for child day care services businesses. 18% of child day care services loans use this program, ideal for real estate and major equipment purchases. PeerSense can analyze your specific deal to determine the optimal program.

How many lenders fund SBA loans for child day care services?

1748 different SBA approved lenders have funded loans in this industry. Not all lenders are equally active in every industry. Talk to PeerSense. The capital source sets the terms for a child day care services file.

What states have the most SBA lending for child day care services?

TX leads with 3,376 SBA loans and $2.8B in total volume for child day care services businesses. FL, CA, GA also show strong lending activity in this sector.

How does PeerSense help child day care services businesses get SBA loans?

PeerSense is a capital advisory firm. Talk to PeerSense about a child day care services file. The capital source sets the terms. No upfront fee. The desk is paid at closing.

Related Healthcare & Social Services Industries

Offices of Dentists

36,078 loans · N/A

Avg: $468K

Offices of Physicians (except Mental Health Specialists)

25,641 loans · N/A

Avg: $452K

Offices of Chiropractors

20,511 loans · N/A

Avg: $166K

Home Health Care Services

9,391 loans · N/A

Avg: $355K

Offices of Physical, Occupational and Speech Therapists, and Audiologi

8,088 loans · N/A

Avg: $256K

Offices of All Other Miscellaneous Health Practitioners

7,476 loans · N/A

Avg: $276K

Data aggregated from SBA loan records (1992 to 2025). Child Day Care Services defined by NAICS code 624410. Not financial advice. PeerSense sources capital through a curated network of commercial lenders and capital sources. Consult a lending professional before making financial decisions.