SBA 7(a) 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 7(a) loan is the clear choice  for car wash financing.

Types of Financing

  • Acquisition 
  • Construction 
  • Expansion 
  • Refinance 
  • Start-Up 

Loan Amounts:       $100,000-$5,000,000

Terms:                   7, 10, 25 Years (depending if working capital, business only or real estate)

Interest Rate:        Prime + .0% -2.75% (Varies by credit risk)

Loan To Value:       50 – 90%

Prepay Penalties:   1st Year 5%, 2nd Year 3%, 3rd Year 1%


  • None to minimal lender fees  
  • Due Diligence Deposit 
  • Customary closing costs 
  • Construction fee, if applicable, to offset monitoring costs 
  • SBA charges a fee of approximately 3.5% (depending on loan amount and percentage of guarantee, usually 75%) 


  • Owner occupied small business 
  • US Citizen or permanent resident alien status 
  • 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 Additional outside collateral is necessary if lease-hold improvements are substantial.

Quick Response  Loan decision generally made within 3 weeks of receipt of completed application. SBA remains the predominant means of financing dealers and operators in the country. The reasons are clear. Because SBA provides longer amortization periods and usually transactions can be approved with smaller debt service coverage, each finance dollar provides approximately 25% more in loan amount, making it easier for borrowers to qualify than for conventional financing. It is a misconception that SBA financing takes longer than conventional financing or that you have to be turned down for a conventional loan to be considered for SBA financing. Generally the speed of the approval is in direct proportion to the organization of the loan package that has been submitted. Recently, SBA has placed more emphasis on the prior experience of the borrower. If you do not have experience in operating car washes, it will be necessary to either bring in a partner with direct management experience, retain the seller (if a purchase) in a management capacity for a period of time and/or perhaps attending training courses. Also important to note is that the borrower’s equity infusion needs to be documented. If you are borrowing money from a third party or are using a home equity loan as part of your equity infusion, SBA would also consider this as a loan and the transaction would be underwritten to service two separate debts.

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