Key Takeaways

SBA-backed loans are an excellent source of financing for child care businesses, covering uses like working capital, expansion, and purchases.
The SBA loan process includes understanding qualifications, underwriting, and collateral requirements, which can take time to navigate.
Key financial considerations include the downpayment, loan fees, the amortization schedule, and the debt coverage ratio.
The lender's experience with child care is crucial, and sellers can play a key role in helping buyers obtain financing.

SBA Loans for Child Care

SBA (Small Business Administration) backed loans provide an excellent source for financing for child care businesses. This Workshop with Jonathan Lamb, an SBA lender, provides great information about SBA loans for child care businesses. In this Workshop, you’ll learn:

Types of SBA loans and how they may be used in child care.
SBA loan process.
Loan qualifications and underwriting.
Tips for child care business sellers and buyers.

And a lot more – PLUS, be sure to check out the accompanying resources too.

00:01:55 – Jonathan Lamb

00:03:50 – Working Capital

00:04:45 – Expansion

00:09:28 – Child Care Experience

00:12:40 – Downpayment

00:15:00 – Amortization Schedule 00:17:30 – SBA Loan Fees

00:22:10 – Collateral

00:26:20 – How long does it take?

00:29:15 – Purchase Agreement

00:34:35 – Underwriting – Preferred Lender

00:37:35 – Lender’s Experience with Child Care

00:38:40 – Loan Brokers

00:41:50 – Seller’s role with buyer obtaining loan

00:44:20 – Seller Tips for buyers ability to finance the purchase

00:51:25 – RE Due Diligence

00:55:15 – Child Care Business History

00:58:35 – Seller Employment Contract

01:01:45 – Seller Financing Pay Back

01:04:14 – Debt Coverage Ratio

01:07:25 – 401K Funds and SBA Loans

01:09:00 – Closing Tips

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