TEXAS · NAICS 624410
Texas childcare center projects, anchored by fast-growing suburban submarkets in the I-35 corridor and around the Triangle metros, work against documented service-area demand, licensure capacity, and competitive supply. Studies model enrollment ramp by age group, tuition positioning, utilization, and a defensible path to stabilization.
FEASIBILITY TRIGGER
Childcare projects are projection-based; licensure capacity and enrollment ramp drive the model.
SBA 7(a) and 504 lenders funded 1,475 childcare center projects across Texas between FY2010 and FY2026, moving $1.90 billion in approved capital at an average ticket of $1.3 million. That volume places Texas at #1 of 38 states measured for childcare center SBA activity, or 19.4% of national childcare center dollars. The 7(a) program carried 83.9% of the loan count, with 504 taking the balance, and 240 approvals have hit the pipeline since FY2024.
| Disbursed loans (FY2010–FY2026) | 1,475 |
| Approved volume | $1.90 billion |
| Average loan size | $1.3 million |
| 7(a) share | 83.9% |
| Approvals since FY2024 | 240 |
| State rank by loan count | #1 of 38 |
Among the 1,075 seasoned loans in this segment (approvals FY2010–FY2021), 4.1% 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 4.1%, close to the national childcare center benchmark of 4.0%, puts Texas deals in this class on ordinary SBA credit footing. Across 1,475 loans averaging $1.3 million, the underwriting question is deal-specific: a rigorous third-party feasibility study is where documented demand and stressed coverage decide the credit outcome.
Every Texas 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.
Texas projects often fit SBA 504 where owner-occupied real estate anchors the deal, with the 50/40/10 structure delivering up to 90 percent financing at a fixed debenture rate, while SBA 7(a) covers acquisitions, working capital, and equipment. From July 4, 2026 eligible borrowers can combine 7(a) and 504 for up to $10 million in total program credit, which matters for larger Texas Triangle and I-35 corridor projects.
Capital CDC-led 504 evidence runs in the asset class, including a veteran-owned Kids R Kids learning academy in The Woodlands that retained 29 jobs.
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: Tennessee, Virginia, California.
Public SBA and CDC program records, cited as program evidence
SBA 504 through Capital CDC with VetLoan Advantage
Veteran-owned center retaining 29 jobs
The Woodlands, Montgomery County
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