How SBA Financing Helped a Growing Child Care Business Expand into a New Location

Growing a business often requires more than increased demand—it takes the right location, the right capital structure, and a financial partner who understands how to support long-term growth.

That was the situation facing Krystal Watson, owner of Jaylynd’s Voice Inc., doing business as Taylor Made Scholars, as her child care business began to outgrow its original space. With guidance and financing support from Quaint Oak Bank, she was able to move into a larger, newly built location designed to support the next phase of her business.

Why Growing Child Care Businesses Often Need Financing

As child care businesses expand, many owners eventually reach a point where their existing space no longer supports their operations or future plans. Moving into a larger facility can create opportunities to:

• Serve more families
• Improve day-to-day operations
• Increase visibility within the community
• Add classrooms or educational resources
• Support continued long-term growth

At the same time, expansion often introduces significant upfront costs. Leasehold improvements, construction, equipment, and working capital needs can quickly add up—especially in specialized environments like child care facilities.

For many business owners, these types of projects require a financing approach that aligns with both immediate needs and long-term growth goals.

From a Small Rented Space to a Larger Child Care Facility

Taylor Made Scholars originally operated out of a small rented space inside a church. As enrollment increased and demand continued to grow, the existing location began to limit what the business could support.

Recognizing the opportunity to expand, Krystal identified a larger storefront location in a nearby plaza. The space offered increased square footage, improved visibility, and the ability to better serve families in the surrounding community.

However, making the transition required significant buildout work and a financing solution that could support both the improvements and the next stage of the business.

How SBA Financing Supported the Expansion

Expansion projects involving leased commercial space often present a unique challenge. Leasehold improvements—while essential to operations—do not always provide strong collateral value under conventional lending structures.

This can make it more difficult for growing businesses to secure traditional financing.

In this case, Quaint Oak Bank worked closely with Krystal to structure a solution that aligned with both the scope of the project and the long-term trajectory of her business.

According to Steve Willard, the project required a financing approach that could account for both the improvements to the space and the continued growth of the business.

By leveraging an SBA loan structure, Quaint Oak Bank was able to support:

• Leasehold improvements
• Business expansion costs
• Growth-related operational needs
• Long-term scalability

What Are Leasehold Improvements?

Leasehold improvements are renovations or upgrades made to a rented commercial property so it can meet the specific needs of a business.

For child care businesses, these improvements often include:

• Classroom construction
• Security upgrades
• Restroom additions
• Flooring and safety modifications
• Outdoor play areas
• HVAC and utility improvements

Because these improvements are made to leased space rather than owned real estate, they can require more flexible financing structures—particularly for businesses in growth phases.

The Value of Working With an SBA Preferred Lender

Before partnering with Quaint Oak Bank, Krystal had largely self-funded her business. While this approach supported the early stages of growth, larger expansion projects required additional capital and a more structured financing strategy.

As an SBA Preferred Lender, Quaint Oak Bank works directly with business owners to navigate SBA programs and develop financing solutions built around their specific goals.

In this case, the relationship extended beyond the loan itself. The bank partnered with Krystal throughout the process to help align the financing structure with her expansion plans and long-term vision for the business.

For many business owners, having a banking partner who understands both the financial and operational side of growth can make a meaningful difference in how projects move forward.

Benefits of SBA Loans for Growing Businesses

SBA loans are often used by businesses looking to expand, relocate, or invest in future growth.

Depending on the structure, SBA financing may offer:

• Longer repayment terms
• Lower down payment requirements
• Flexible collateral structures
• Financing for leasehold improvements
• Working capital support
• Funding for equipment and operational expenses

These features can make SBA loans a practical option for businesses in growth phases, particularly those requiring specialized build-outs like child care facilities.

Supporting Small Business Growth in Local Communities

Today, Taylor Made Scholars is positioned to serve more families, operate more efficiently, and continue growing its presence within the community.

For Quaint Oak Bank, projects like this reflect a broader commitment to supporting business owners as they move into their next phase of growth.

Whether a business is facing limitations related to space, capital, or access to financing, having the right banking partner can help turn expansion plans into a clear, achievable path forward—and give business owners the confidence to move ahead.