Running a preschool is a labor of love—and a major investment in the future. But providing safe, enriching, and developmentally appropriate learning environments takes more than dedication. Whether you’re renovating classrooms, adding outdoor play areas, or upgrading early childhood curriculum materials, business loans for preschools can help you improve your offerings without compromising cash flow.
In this guide, we explore the top funding options for preschools and how to use them to support facility improvements, teacher training, educational tools, and program expansion.
Even preschools at full enrollment often face tight margins. From licensing and staffing to facility compliance and equipment, running a quality early childhood program comes with ongoing costs. Financing allows school leaders to invest in long-term improvements that benefit students, families, and staff alike.
Top reasons preschools seek funding:
Renovating or expanding classrooms
Updating outdoor learning and play areas
Purchasing new furniture, books, and sensory materials
Hiring and training certified early childhood educators
Upgrading to digital management and check-in systems
Managing payroll or tuition gaps
| Investment Area | Examples |
|---|---|
| Facility Improvements | Flooring, lighting, ADA upgrades, classroom layout changes |
| Educational Materials | Books, blocks, puzzles, art supplies, curriculum kits |
| Technology | Parent communication apps, digital lesson planning tools |
| Staff Development | CPR training, early childhood certifications, workshops |
| Outdoor Enhancements | Shade structures, playgrounds, safety surfacing |
| Marketing & Enrollment | Website refresh, tours, paid social ads |
Backed by the U.S. Small Business Administration, these loans are ideal for smaller improvements or equipment purchases (up to $50,000).
Pros: Low interest, flexible use, available to newer businesses
Cons: Application process can take time
🔗 Learn more about SBA Microloans
Receive a lump sum upfront for larger investments like classroom renovations or staff expansion.
Pros: Fixed rates and predictable monthly payments
Cons: May require good credit and financial documentation
Purchase classroom furniture, play structures, or digital learning tools without upfront payment.
Pros: Equipment serves as collateral; spreads out cost
Cons: Limited to specific items or vendors
Revolving credit line you can draw from when needed—great for payroll, supply purchases, or cash flow gaps.
Pros: Flexible access; interest only on what’s used
Cons: Variable rates and possible annual fees
Local lenders or nonprofit loan funds may offer low-interest options for child-focused organizations.
Pros: Mission-aligned and flexible
Cons: Often limited to specific regions
Identify your top areas for improvement (space, staff, curriculum)
Estimate how much funding is needed
Choose the right loan type based on usage and repayment ability
Gather financial documents and licensing info
Apply with a lender experienced in childcare or education
Use funds strategically to boost safety, learning, or growth
Track results in enrollment, parent satisfaction, or quality scores
A preschool in Oregon used a $35,000 SBA microloan to create a nature-based outdoor classroom, install new safety flooring, and purchase Montessori curriculum tools. Enrollment increased by 25% within three months, and the school’s licensing rating improved due to the facility enhancements.
❌ Skipping staff training when investing in new tools or methods
❌ Underbudgeting for renovations or outdoor play upgrades
❌ Choosing short-term financing for long-term investments
❌ Not allocating funds toward marketing when expanding capacity
❌ Using personal credit cards instead of business financing
Bundle facility and curriculum upgrades into one project to minimize disruption
Create a waitlist to fill new spots as soon as they're available
Apply for grants to supplement loan funds for teacher development
Host a family open house to show off improvements and build enrollment
Promote new features on your website, Google Business profile, and social media
SBA Loans for Childcare Businesses
National Association for the Education of Young Children (NAEYC)
Capterra: Childcare Software Tools
Improving your preschool doesn’t have to drain your reserves. With the right financing, you can enhance your space, support your teachers, and give your students the tools to thrive. Whether you’re expanding your reach or simply modernizing your program, a strategic loan can make it possible—without compromising your mission.
Ready to grow your preschool? Explore funding options today and take the next step toward enriching young learners' lives.