WISCONSIN · NAICS 624410
Wisconsin childcare deals are projection-based, with licensure capacity and enrollment ramp driving the model. The state's dual-income metro markets in Milwaukee, Madison, and the Fox Valley support strong center economics against one of the higher childcare cost bases in the Midwest, exactly the tension a credible study resolves.
FEASIBILITY TRIGGER
Childcare deals are projection-based; licensure capacity and enrollment ramp drive the model.
Wisconsin generated 329 SBA-disbursed childcare center loans between FY2010 and FY2026, worth $162.8 million in approved 7(a) and 504 financing at an average of $495,000 per deal. Ranked #12 of 38 states for childcare center SBA volume, the state captures 1.7% of national childcare center dollars. 82.1% of the loans ran through 7(a) with 504 covering the remainder; 52 approvals have posted since FY2024.
| Disbursed loans (FY2010–FY2026) | 329 |
| Approved volume | $162.8 million |
| Average loan size | $495,000 |
| 7(a) share | 82.1% |
| Approvals since FY2024 | 52 |
| State rank by loan count | #12 of 38 |
Among the 239 seasoned loans in this segment (approvals FY2010–FY2021), 4.6% 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 above the national benchmark for this asset class, which is a factor lenders weigh in their credit decision.
Source: SBA 7(a) and 504 FOIA loan-level data, as of March 31, 2026. Disbursed loans only. See data methodology.
A 4.6% adverse-resolution rate against the national childcare center benchmark of 4.0% tells credit committees to scrutinize revenue projections and coverage assumptions closely on Wisconsin deals in this class. A rigorous third-party feasibility study — built on documented demand, defensible pricing, and stressed coverage — carries meaningful weight in that underwriting conversation, particularly at an average loan size of $495,000 across 329 loans.
Every Wisconsin 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.
Wisconsin 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, and 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.
Wisconsin's dual-income metro markets in Milwaukee, Madison, and the Fox Valley support strong center economics against one of the higher childcare cost bases in the Midwest.
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: West Virginia, Wyoming, Texas.
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