A League City, TX daycare can fund another classroom or a second site with a term loan, a passenger van or classroom furniture with equipment financing; playground equipment and poured surfacing are excluded, and the payroll for a room that is still filling with working capital. The request starts with the amount and purpose; a partner may ask for expansion and enrollment records during its review and decide.
A Brookway Finance article on funding a child care expansion in League City, Texas.
Getting a business loan for a daycare: classrooms, vans and a second site
Expansion requests at a child care center come in three sizes. Another classroom inside the current building can add movable furniture, cribs, safety gates and self-contained handwashing stations; fixed walls, sinks, flooring and lighting are excluded. A passenger van adds a vehicle and its insurance. A second site adds a lease, movable equipment and new staff; property purchase is excluded. The first and third can be reviewed for a term loan; the van fits equipment financing.
Galveston County, TX counted 66 child day care employer establishments in 2023 (County Business Patterns, NAICS 624410), with 1,324 paid employees, or about 20.1 per establishment on our arithmetic; 13 had fewer than five employees, or 19.7%. Annual payroll per employee came to roughly $25,209. In the 2023 ZIP Code Business Patterns, 18 child day care employers had a ZIP 77573 address. Separately, the 2024 Nonemployer Statistics count of 560 businesses without paid employees is for the broader child care services group (NAICS 62441), not centers alone.
A second site is read as two businesses at once. The existing center's records show that the owner can run a room at capacity and keep families; the new site's budget shows what it costs before the first child arrives: deposits, movable furniture and equipment, staff hired ahead of opening, and several months of rent while enrollment builds. Fixed construction is excluded. Put both in one request, and keep the second site's costs on their own sheet so a partner can see which part each product would cover.
For a second site, confirm the city business license step for the new address with the city; the daycare center financing page covers the other request types.
Payroll while enrollment builds in a new room
A room at an existing center can be ready for children before enrollment reaches its planned level. That gap between payroll and tuition is the part of an expansion that is easy to underestimate, and it belongs in the request.
| Month | Children enrolled | Tuition at $260 a week |
|---|---|---|
| 1 | 4 | $4,507 |
| 2 | 7 | $7,887 |
| 3 | 10 | $11,267 |
The two new teachers cost $2,900 per biweekly payroll, wages and payroll taxes included, and the movable-equipment payment is $1,210.00 a month ($64,000 over 72 months at 10.75%). A 30-day month holds 2 or 3 paydays, so month one costs $7,010 to $9,910 against $4,507 of tuition: a shortfall of $2,503 to $5,403.
Over the first 90 days the room's payroll comes to $17,400 to $20,300 (6 or 7 paydays), while tuition reaches $23,660. The shortfall is concentrated in the first month or two, which is the case for working capital sized to those months rather than a longer loan.
Equipment financing for cribs, cots and classroom furniture
Furniture, cribs and cots can be identified on a supplier quote for equipment financing with terms that follow their life. Playground equipment, poured surfacing, fencing and other ground work are excluded.
- Cribs: 8 at $420, $3,360 (invented).
- Nap cots: 24 at $68, $1,632 (invented).
- Child-size tables, chairs and storage, on a supplier quote: $25,200 (invented).
Illustration only: the $30,192 package over 48 months at 10.5% costs $773.02 a month. A passenger van at $48,000 over 60 months at 9.9% costs $1,017.50 a month, and a partner may look at the vehicle's title, insurance and driver records as well as the price.
Enrollment and payroll records a lender reviews
A child care request is read on its enrollment and its payroll as much as on its bank statements. Prepare these records:
- Enrollment by classroom for the past twelve months, with any waiting list.
- Tuition rates and how families pay, with any subsidy payments shown separately.
- For the center's records, include the class schedule and the staff-to-room plan for the new space.
- Staff roster and payroll reports, and the hiring plan for the new room.
- The supplier quote for movable equipment and the second-site lease, with any landlord consent for setup; property purchase and fixed construction are excluded.
With those ready, call (346) 488-2084 or send the request form. The articles page lists the other posts, including one on equipment for dental practices.
By Brookway Finance · Updated
