WASHINGTON · NAICS 624410
Washington childcare center projects track the Puget Sound tech employment base where center economics are among the strongest in the West and the cost base is just as high. Studies translate licensure capacity, enrollment ramp by age group, tuition rates, and staffing models into projections, and reconcile real estate and equipment structures against coverage under stress.
FEASIBILITY TRIGGER
Childcare deals are projection-based; licensure capacity and enrollment ramp drive the model.
Between FY2010 and FY2026, SBA lenders approved and disbursed 237 7(a) and 504 loans for childcare center projects in Washington, totaling $242.4 million in approved financing at an average of $1.0 million per loan. Washington ranks #17 of 38 states tracked for childcare center SBA lending volume and accounts for 2.5% of national childcare center SBA dollar volume. 84.8% of these loans were made under the 7(a) program, the remainder under 504. 47 loans have been approved since FY2024.
| Disbursed loans (FY2010–FY2026) | 237 |
| Approved volume | $242.4 million |
| Average loan size | $1.0 million |
| 7(a) share | 84.8% |
| Approvals since FY2024 | 47 |
| State rank by loan count | #17 of 38 |
Among the 161 seasoned loans in this segment (approvals FY2010–FY2021), 2.5% reached adverse resolution — purchased, liquidated, or charged off. The national benchmark for childcare center is 4.0%, against 7.3% across all industries. That performance runs below the national benchmark for this asset class, a credit-positive signal for lenders.
Source: SBA 7(a) and 504 FOIA loan-level data, as of March 31, 2026. Disbursed loans only. See data methodology.
A 2.5% adverse-resolution rate below the national childcare center benchmark of 4.0% supports the credit story for well-underwritten Washington projects in this class. Across 237 SBA loans averaging $1.0 million, that track record does not eliminate the need for a third-party feasibility study, but it means a rigorous study reinforces rather than defends the projections.
Every Washington 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.
Washington 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, decisive in a Puget Sound market where land costs run high. 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.
The Puget Sound tech employment base supports some of the strongest center economics in the West, against an equally high cost base the model must absorb.
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: Virginia, West Virginia, Texas.
Public SBA and CDC program records, cited as program evidence
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SBA 504 through B:Side Capital with NBH Bank
Childcare center, national program evidence
Colorado
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