PENNSYLVANIA · NAICS 624410
Pennsylvania childcare center projects span the metro Philadelphia and Pittsburgh suburbs and the mid-state corridor. Studies translate licensure capacity, enrollment ramp by age group, tuition rates, and staffing models into projections, and reconcile PIDA stacking eligibility against the deal structure where it can layer behind a 504.
FEASIBILITY TRIGGER
Childcare deals are projection-based; licensure capacity and enrollment ramp drive the model.
From FY2010 through FY2026, Pennsylvania recorded 493 SBA-disbursed childcare center loans across the 7(a) and 504 programs, representing $318.2 million in approved financing at an average loan size of $645,000. The state sits at rank #8 of 38 for childcare center SBA lending volume and holds 3.3% of the national childcare center dollar pool. 7(a) accounts for 92.3% of the count, 504 for the rest, with 97 fresh approvals dated FY2024 or later.
| Disbursed loans (FY2010–FY2026) | 493 |
| Approved volume | $318.2 million |
| Average loan size | $645,000 |
| 7(a) share | 92.3% |
| Approvals since FY2024 | 97 |
| State rank by loan count | #8 of 38 |
Among the 326 seasoned loans in this segment (approvals FY2010–FY2021), 3.7% reached adverse resolution — purchased, liquidated, or charged off. The national benchmark for childcare center is 4.0%, against 7.3% across all industries. That is broadly in line with the national benchmark for this asset class.
Source: SBA 7(a) and 504 FOIA loan-level data, as of March 31, 2026. Disbursed loans only. See data methodology.
An adverse-resolution rate of 3.7%, close to the national childcare center benchmark of 4.0%, puts Pennsylvania deals in this class on ordinary SBA credit footing. Across 493 loans averaging $645,000, the underwriting question is deal-specific: a rigorous third-party feasibility study is where documented demand and stressed coverage decide the credit outcome.
Every Pennsylvania childcare centers project we underwrite follows the same lender ready process: independent market analysis, site and technical review, and financial projections tested against SBA SOP 50 10 8 standards. Our SBA feasibility study consultants guide explains scope, timing, deliverables, and what lenders and CDCs expect in the report.
Pennsylvania projects most often pencil under SBA 504 because the 50/40/10 structure delivers up to 90 percent financing on owner-occupied real estate at a fixed debenture rate, and PIDA's low-interest second-mortgage loans stack directly behind the 504. SBA 7(a) covers acquisitions, working capital, and equipment, and from July 4, 2026 eligible borrowers can combine 7(a) and 504 for up to $10 million in total program credit.
Childcare is Pennsylvania's second-largest SBA category by dollars at $42.7 million across 53 calendar 2025 loans, and PIDA lists childcare among its eligible stacking sectors.
For a national view of this asset class, see our childcare center SBA feasibility overview, and read our related analysis in the childcare center lending research on our blog.
Compare neighboring markets: Oregon, Rhode Island, Texas.
Public SBA and CDC program records, cited as program evidence
Seedcopa-documented SBA 504 of $343,000 within an $826,000 project with Tompkins
Fiscal 2024 Seedcopa-documented financing
Blandon, Berks County, Pennsylvania
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