Construction Loans

Loan Amounts:       $250,000-$5,000,000

Terms:                      6 – 18 Months

Amortization:         Interest Only

Interest Rate:        Prime + .0% -2.00% (Varies by credit risk)

Loan To Value:       50 – 90%

Prepay Penalties:   None

Fees:                        1.0 Lender

                                  .5 – 1.0% (Broker Fee / To Be Determined)


  • US Citizen or permanent resident alien status 
  • Good credit/character 
  • Management experience 
  • Reasonable financial statement or credible projections 

Collateral: First lien on land, building, equipment and inventory Additional outside collateral may be necessary.

Construction financing is one of the more difficult types of financing to do. First of all it is considered a startup business. Banks, in general, do not like to start up businesses. Individuals who have never owned or operated a car wash before will have the most difficult time obtaining car wash construction loans. The more organized you are with your project the more likely you are to obtain financing.

Another reason why banks do not like construction financing is frequently there cost overruns. If you are doing a high loan-to-value loan and there are cost overruns, the bank can simply stop funding your loan. There are many projects nationwide that have never completed construction due to the bank failing to provide additional financing. Make sure you plan will cost overrun contingencies.

It also depends on what type of car wash you are looking to construct. If you’re looking to build a self-service car wash it is more likely that you will be approved than if it is a full-service tunnel wash. Obviously a self-service car wash costs less to construct than a full-service tunnel wash. 

If you already own the land that you are building your car wash on and you have applied for permits it will be easier for you to obtain financing than if you are still looking to purchase land. The underwriter will simply look at it as being more work to do if you have not purchased the land already.

These are all common sense things. It is highly likely that you will have to have a feasibility study done in order to obtain a loan. This additional money spent is well worth it. You might find out things about the neighborhood that you would not find out doing your own investigation. Many major companies will not build restaurants or gas stations or hotels without a feasibility study.

To find out and pre-qualify for car wash financing and what options are available, please send the following information.  You can also email us an Executive Summary of your project to and we will respond to your inquiry.

  1. Previous Year End Business Financials
  2. Current Year-To-Date Business Financials

For more information, contact us at:

(202) 478-0230 Voice
(202) 204-6057 Fax