SBA 504 Loans

SBA has been a primary means of financing businesses and commercial properties for many years. If you are looking for car wash loans, in many instances an SBA 504 loan is the clear choice  for car wash financing, especially for larger projects and projects that require long term fixed rate financing.

The 504 program allows small and medium-size businesses to obtain long term, fixed-rate financing at below market rates for up to 20 years. The SBA-guaranteed debentures are pooled monthly and sold to private investors.

Projects are financed per the following structure: A private lending institution covers 50 percent of the project cost. A Certified Development Company (CDC) finances 40% (not to exceed $1,000,000) through SBA The small business must invest at least 10% (15% for special purpose facility/20% for special purpose and start-up businesses)

Types of Financing Acquisition (Land and Buildings) New Construction,  Renovations, Refinances, Machinery and Equipment

Loan Amounts  $750,000-$5,000,000

Terms20 Years Real Estate 10 Years Machinery and Equipment

Interest Rate: Prime + .5% – 2.75% variable from primary lender (Varies by credit risk) CDC Rates typically fixed at less than Prime rates

Loan To Value: 50 – 80% (Gas stations/C-stores considered special use facility and usually have a maximum of 80% financing)

Prepayment Penalties: There is a ten year pre-pay penalty. 10%, 9%, 8%, 7%, 6%, 5%, 4%, 3%, 2%, 1%

Fees: None to minimal lender fees Packaging fee/good faith deposit Customary closing costs Construction fee, if applicable, to offset monitoring costs SBA charges a fee of approximately 2% (depending on loan amount and percentage of guarantee)

Eligibility: Owner occupied small business US Citizen or resident alien Good credit/character Management experience Reasonable financial statement or credible projections Business must meet SBA size standards

Collateral: First lien on land, building, equipment and inventory. Personal guaranties of the principal owners are also required. Additional outside collateral is necessary if lease-hold improvements are substantial.

Quick Response Loan decision made within 4 weeks of receipt of completed application. SBA 504 financing is a superior long term fixed rate financing option. 504 loans are normally done on larger projects. If you do not feel you would be owning the property for a longer period of time, SBA’s 7(a) loan program or perhaps conventional financing would be a better alternative because of the 504’s longer pre-pay penalty period. The longer pre-pay penalty is to offset the significantly lower rates offered in a bond debenture done by the CDC. Refinances are eligible.

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