NAICS 624410 Quarterly Industry Report
Child Day Care Services
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 624410Sector: Health Care and Social Assistance (62)Updated: Q1 2026
About This Report
This industry profile for Child Day Care Services (NAICS 624410) draws on data from the U.S. Census Bureau[6], HHS Administration for Children and Families[11], Bureau of Labor Statistics[12], and SBA size standards database[8]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, child care industry analysts, and early education investors with current market data. All quantitative claims are sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the child day care services industry.
NAICS Sector
62
Health Care and Social Assistance
Industry Definition & Overview
Child Day Care Services (NAICS 624410) encompasses establishments primarily engaged in providing care and early learning opportunities for infants and children per the U.S. Census Bureau[5]. Facilities generally serve children from birth through school age and may offer pre-kindergarten, kindergarten, and before- or after-school educational programs. Services include health and developmental screening, social and emotional learning activities, and family engagement programming designed to support child development alongside custodial care during parents' working hours.
Roughly 55,536 businesses operate over 77,000 locations employing 976,000 workers, generating $41.4 billion in revenue with $20.2 billion in annual payroll per Census Bureau[6] economic survey data. Head Start and Early Head Start programs funded by the HHS Administration for Children and Families[7] served nearly 833,000 children in FY 2023 through over 1,600 grantees operating in every state. KinderCare Learning Companies, Bright Horizons Family Solutions, and Learning Care Group operate among the largest for-profit center-based providers. Over half of all child care establishments are small independent operators serving fewer than 50 children, making this one of the most fragmented industries in the social services sector.
Per the SBA Table of Size Standards[8], the size standard is $10 million in average annual receipts. State licensing requirements govern staff-to-child ratios, teacher qualifications, facility safety standards, health protocols, and background check procedures, with wide variation across jurisdictions. Child Care and Development Fund (CCDF) subsidies administered by HHS[9] help low-income families afford child care, with states setting eligibility levels, reimbursement rates, and quality standards for participating providers. NAEYC (National Association for the Education of Young Children) accreditation represents the primary voluntary quality standard, with about 7,000 accredited programs nationwide. Child and Adult Care Food Program (CACFP) reimburses qualifying providers for meals and snacks served to enrolled children per USDA[10] nutrition program guidelines.
What's Included in This Industry
- Full-day infant and toddler care programs
- Preschool and pre-kindergarten educational programs
- Before-school and after-school care services
- Summer camp and school-break child care programs
- Head Start and Early Head Start program operations
- Developmental screening and early intervention referral
- Family child care home provider networks
- Employer-sponsored on-site child care centers
- Meal and nutrition program administration (CACFP)
- Parent engagement and family support programming
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Health Care and Social Assistance | 62 |
| Subsector | Social Assistance | 624 |
| Industry Group | Child Care Services | 6244 |
| NAICS Industry | Child Care Services | 62441 |
| National Industry | Child Care Services | 624410 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 624110 | Child and Youth Services | Child and Youth Services provide social assistance programming that complements child day care through after-school youth development, mentoring, and family support services, with youth centers and child guidance agencies serving school-age children who also use before- and after-school care programs |
| 611110 | Elementary and Secondary Schools | Elementary and Secondary Schools operate kindergarten and pre-K programs that overlap with child day care educational offerings, with public school pre-kindergarten expansion creating both competition and partnership opportunities for child care centers serving four- and five-year-old children |
| 624120 | Services for the Elderly and Persons with Disabilities | Services for the Elderly and Persons with Disabilities operate adult day care programs that parallel the child day care service model in this classification, with both facility types providing supervised daytime care, activities, and meals for populations unable to remain unattended during family members' working hours |
| 624190 | Other Individual and Family Services | Other Individual and Family Services deliver family counseling, parenting support, and crisis intervention that connects to child care through family stabilization, with social service agencies referring families to subsidized child care as part of broader support plans addressing employment and housing needs |
| 611710 | Educational Support Services | Educational Support Services provide tutoring and test preparation that supplements the educational programming in child day care, with learning enrichment providers offering specialized instruction that child care centers may subcontract or refer families to for school readiness and academic skill development |
| 813110 | Religious Organizations | Religious Organizations operate faith-based child care programs that represent a large segment of the child care market, with churches, synagogues, and mosques hosting licensed child care centers on their premises while maintaining separate operational and licensing structures from their religious worship functions |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 11.6% | 9,301 |
| 2 | New York | 7.7% | 6,202 |
| 3 | Texas | 7.4% | 5,948 |
| 4 | Florida | 5.8% | 4,616 |
| 5 | Pennsylvania | 4.8% | 3,858 |
| 6 | Illinois | 3.9% | 3,104 |
| 7 | Ohio | 3.5% | 2,777 |
| 8 | North Carolina | 3.3% | 2,604 |
| 9 | New Jersey | 3.0% | 2,421 |
| 10 | Georgia | 3.0% | 2,405 |
% Of Establishments
0%
12%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
9,160
Total SBA Loans
$6.7B
Total Loan Volume
$727K
Average Loan Size
13 yrs
Average Loan Term
9.85%
Average Interest Rate
157,576
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Per the SBA Table of Size Standards[8], Child Day Care Services (NAICS 624410) has a size standard of $10 million in average annual receipts for federal contracting purposes. SBA lending programs[13] support facility acquisition, classroom construction, and program expansion for qualifying child care operators. Eligible businesses can access SBA 7(a) loans[14] for working capital, equipment, and acquisition financing, while 504 loans[15] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Live Oak Banking Company | 360 | $668.1M | $1.9M |
| 2 | The Huntington National Bank | 680 | $332.7M | $489K |
| 3 | Readycap Lending, LLC | 384 | $321.6M | $837K |
| 4 | Newtek Bank, National Association | 512 | $282.6M | $552K |
| 5 | First Bank of the Lake | 168 | $278.3M | $1.7M |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for day care centers?
NAICS 624410 covers child day care services including center-based care, preschool programs, before/after school care, and Head Start per the U.S. Census Bureau[5].
What is the SBA size standard for child day care?
The SBA size standard[8] is $10 million in average annual receipts, determining eligibility for federal small business contracting programs and SBA lending products.
How large is the child care industry?
Roughly 55,536 businesses operate over 77,000 locations employing 976,000 workers, generating $41.4 billion in revenue per Census Bureau[6] economic survey data, with over half of establishments being small independent operators.
How many children does Head Start serve?
Head Start and Early Head Start served nearly 833,000 children in FY 2023 through over 1,600 grantees per HHS Office of Head Start[7] program data, operating in every state with federal funding for low-income families and children with disabilities.
What are CCDF child care subsidies?
Child Care and Development Fund subsidies administered by HHS[9] help low-income families afford child care, with states setting eligibility levels, provider reimbursement rates, and quality standards for the approximately 1.4 million children receiving monthly assistance.
What is NAEYC accreditation?
NAEYC accreditation represents the primary voluntary quality standard for child care programs, with roughly 7,000 accredited programs meeting standards covering curriculum, teacher qualifications, health and safety, and family engagement per National Association for the Education of Young Children guidelines.
Who are the largest child care companies?
KinderCare Learning Companies, Bright Horizons Family Solutions, and Learning Care Group operate among the largest for-profit center-based providers per industry tracking data, though the majority of the 55,000+ establishments remain small independent operators serving local communities.
What meal programs support child care?
Child and Adult Care Food Program reimburses qualifying providers for meals and snacks served to enrolled children per USDA Food and Nutrition Service[10] guidelines, with centers and family child care homes receiving tiered reimbursement based on the income levels of enrolled children's families.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Census Bureau data.census.gov
- [7]HHS Administration for Children and Families acf.hhs.gov
- [8]SBA Table of Size Standards sba.gov
- [9]HHS acf.hhs.gov
- [10]USDA fns.usda.gov
- [11]HHS Administration for Children and Families acf.hhs.gov
- [12]Bureau of Labor Statistics bls.gov
- [13]SBA lending programs sba.gov
- [14]SBA 7(a) loans sba.gov
- [15]504 loans sba.gov
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