SBA Loan Leads to Success
SBA Loan SBA Loan Leads to Success
Author: Valerie Mellema
Date posted: 10.27.24

Daycares have a huge presence across the United States. It’s important to parents that their children are cared for well when they can’t do it themselves. That’s precisely why one family chose to open a daycare – to provide a safe and loving environment for little ones that needed somewhere to go while parents are working. A love for children is what started a prominent daycare located on the west coast. A family who enjoyed children and wanted to ensure their needs were cared for started a place where that would happen. Things went well – very well.

When Expansion Is Needed

Everyone understands the rapid growth of children. For instance, one day, they seem small and innocent; however, the next, they’re practically adults in a parent’s eyes. They need larger clothes, more advanced books, and eventually leave home sooner than expected.

Yet, it’s not just children who undergo growth. In fact, businesses also experience this evolution over time. Take the daycare we mentioned, for instance. Its popularity surged, demanding more space. As a result, the only option was expansion, ensuring their reputation for outstanding services.

 

Considering Financing Needs

While an expansion was a great idea, financing was essential to turn it into a reality. Starting from infants all the way to pre-kindergarten kids, the daycare meticulously planned every aspect of the expansion to provide comprehensive care and education in the future.

Upon assessing the business requirements, the team concluded that securing a $1.5 million loan stood out as the optimal choice. This substantial sum would cover a building expansion, a new curriculum, hiring experienced staff, and enhancing food quality for everyone at the daycare. It served as a powerful demonstration of the daycare’s commitment to setting a high standard for their community.

SBA Loan Leads to Success

Which Loan is the Right Option?

As a thriving daycare in a large town, numerous options exist for financing the necessary changes to facilitate the daycare’s growth and further integration into the community. In fact, all possibilities were meticulously examined, given the magnitude of this significant step.

To explore potential avenues, the business owner actively researched options through their local Small Business Association. They carefully evaluated a range of loans and alternative financing choices, ensuring they could secure the desired funds and manage repayment comfortably over time.

 

Reasons to Select an SBA 7(a) Loan

In the end, the business opted for an SBA 7(a) loan. Numerous reasons factored into this funding choice. SBA loans cater to a wide range of needs, encompassing debt refinancing, renovations, real estate, equipment, and working capital. Given the focus on expansion, it emerged as the perfect option.

Opting for a 10-year term ensured manageable payments. Additionally, they chose to inject 10% equity into the loan, underscoring their strong commitment to the business and the imminent expansion. With approval secured, they swiftly began implementing the necessary changes.

What Happened Afterward

With plenty of cash to move forward, this daycare quickly broke ground on new facilities. They brought in professionals to teach and provide care, built a new kitchen for healthy snacks and meals, and create a top curriculum for the children who visit every day.

 

Since taking the SBA 7(a) loan, life has been better than ever for the owner of the daycare. All the changes have been exciting for workers and those in the neighborhood. It’s no surprise that the daycare is doing better than ever and it’s all thanks to an SBA loan.

SBA Loan Leads to Success
About The Author | Valerie Mellema

Valerie has over 16 years of experience as a professional writer of blogs, eBooks, articles and press releases, with a focus on finance and alternative lending. Valerie resides with her family in Texas and is passionate about her horses.

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