Small Business Spotlight

SBA 7(A) Lending

Child Care Center Owner Closes Two Loans: 100% Financing with No Money Down

Discover how a seasoned business owner added two child care centers to their existing portfolio despite a lack of funds for the initial down payment as well as various other challenges they faced to get the deals done.

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Loan Amount


Loan Purpose

SBA 7(a) loan for a business acquisition including real estate and working capital

The Small Business

Child Care Centers | Jourdanton and Pleasanton, TX

The Financing Challenge

Our seasoned business owners were ready to add on two child care centers to their existing portfolio but were unable to provide the 10% minimum down payment. In addition to the issues with the initial deposit, they had a very tight deadline that needed to be met, environmental risk assessment challenges, and cashflow issues.

SBA 7(a) Loan Scenario

Here’s what our borrower brought to Ready Capital

Industry Expertise

An existing business in the child care industry with sufficient debt service coverage based on historical data. There was enough cashflow to support the debt.

Sufficient Income

Sufficient outside income aside from their existing business where no collateral was needed.

Tight Timelines

A tight deadline with minor environmental risk assessment issues.


Since the borrower was unable to put down the minimum 10% for the two locations, we had to think outside the box. This deal qualified for the unique “expansion program” offered by the SBA, which provided 100% financing to the borrower with no money down.

We went through our Preferred Lender Program which did not need to be submitted directly for SBA approval.

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Reliable Results

  • We were able to 100% finance the deal with no money down except for closing costs.
  • Closed both properties on the same day.
  • The borrower received an additional $100,000 in working capital – $50,000 for each location.

The Non-Bank SBA Preferred Lender Difference

A small business loan is not an empty box like a checking or savings account. No two small businesses are alike when it comes to their financing needs. This means that small business financing requires out-of-the-box thinking and capabilities many banks simply can’t offer.

Ready Capital is a non-bank, SBA preferred lending partner (PLP). We speak fluent small business and have the process in place to help them reach their goals the first time.

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