When Expansion Is Needed

Everyone knows that kids grow up fast. They can seem so small and innocent one day and be practically adults the next in the eyes of a parent. Your child needs bigger clothes, more advanced books, and is eventually out of the house before you ever expected it.

 

Kids aren’t the only thing that grows over time. Businesses do too. In this case, the daycare we mentioned became so popular that there wasn’t room for everything they did. Expansion seemed to be the only option to keep offering the great services they were known for.

 

Considering Financing Needs

While an expansion was a great idea, it was going to take some time to make that a reality without financing. With a focus on infants all the way to pre-kindergarten kids, the daycare came up with everything they would need to expand and offer supportive care and education in the years to come.

 

After going through the business needs, it was determined that a loan of $1.5 million would be the best option. This would fund a building expansion, a new curriculum, experienced staff, and better food for everyone at the daycare. It was a great way to show the neighborhood how daycares should be.

Which Loan is the Right Option?

As a thriving daycare in a large town, there are many options for financing the needed changes to let the daycare grow and become a bigger part of the community. All possibilities were considered since this would be a huge step.

 

The business owner looked into options at their local Small Business Association. They sifted through various loans and alternative financing options to make sure they could get the money they wanted and have time to pay it off without feeling a pinch.

 

Reasons to Select an SBA 7(a) Loan

In the end, an SBA 7(a) loan was chosen. There were a host of reasons to select this type of funding. SBA loans are made to work with all sorts of needs, including debt refinancing, renovations, real estate, equipment, and working capital. Since expansion was the main motivation, this was the ideal choice.

 

Choosing a 10-year term made sure that payments would be reasonable. They also decided to inject 10% equity into the loan to show how serious they were about the business and the upcoming expansion. They were approved and got right to work on making 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.

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