1. SBA Loans (Small Business Administration)
- SBA 7(a) Loans: Up to $5 million for working capital, equipment, real estate, or refinancing.
- SBA 504 Loans: Ideal for acquiring or renovating facilities; covers up to 90% of project costs.
- SBA Microloans: Up to $50,000, average around $13,000—great for startups or home-based centers.
- Benefits: Low interest rates, long repayment terms.
- Requirements: Good credit, solid business plan, formal business structure (LLC/S Corp).
2. Term Loans
- Fixed amount repaid over time with interest.
- Used for specific projects like playground upgrades or facility expansion.
- Requires 1–2 years in business, good credit, and stable revenue.
3. Lines of Credit
- Flexible borrowing up to a set limit; pay interest only on what you use.
- Ideal for managing cash flow fluctuations or unexpected expenses.
- Easier to qualify for if you’ve been in business for at least a year.
4. Equipment Financing
- Used to purchase or lease daycare equipment (e.g., furniture, safety gear).
- Equipment serves as collateral, making it accessible even with limited credit history.
5. Working Capital Loans
- Short-term loans to cover daily operations like payroll, supplies, or utilities.
- Useful during slow enrollment periods or seasonal dips.
6. Business Credit Cards
- Available to startups and small businesses.
- Helps build business credit and manage smaller purchases.
- May offer rewards or cashback on daycare-related expenses.
7. Grants & State Programs
- Some states offer childcare-specific grants or low-interest loans.
- Check with your local Women’s Business Center or Child Care Resource & Referral (CCR&R) agency for regional opportunities.