VIRGINIA · NAICS 624410
Virginia childcare deals are projection-based, with licensure capacity and enrollment ramp driving the model. Childcare led the Virginia Beach table at $5.9 million across just two calendar 2025 loans, among the largest per-deal tickets in the published record, with Northern Virginia's dual-income density anchoring statewide demand.
FEASIBILITY TRIGGER
Childcare deals are projection-based; licensure capacity and enrollment ramp drive the model.
SBA 7(a) and 504 lenders funded 238 childcare center projects across Virginia between FY2010 and FY2026, moving $263.7 million in approved capital at an average ticket of $1.1 million. That volume places Virginia at #16 of 38 states measured for childcare center SBA activity, or 2.7% of national childcare center dollars. The 7(a) program carried 83.6% of the loan count, with 504 taking the balance, and 45 approvals have hit the pipeline since FY2024.
| Disbursed loans (FY2010–FY2026) | 238 |
| Approved volume | $263.7 million |
| Average loan size | $1.1 million |
| 7(a) share | 83.6% |
| Approvals since FY2024 | 45 |
| State rank by loan count | #16 of 38 |
Among the 157 seasoned loans in this segment (approvals FY2010–FY2021), 3.8% 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 3.8%, close to the national childcare center benchmark of 4.0%, puts Virginia deals in this class on ordinary SBA credit footing. Across 238 loans averaging $1.1 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 Virginia 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.
Virginia projects 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, decisive in Northern Virginia and Hampton Roads land markets. 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 led the Virginia Beach table at $5.9 million across just two calendar 2025 loans, among the largest per-deal tickets in the published record, with Northern Virginia's dual-income density anchoring statewide demand.
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: Texas, Washington.
Public SBA and CDC program records, cited as program evidence
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