In 2017, the car wash industry generated an estimated $11 billion in revenue across the U.S., employing more than 215,000 workers. From 2013-2018, the industry grew at an average rate of 3.6% per year— making it a great time to start or expand a car wash business. So, if you’re thinking of getting a loan to start, grow, or refinance debt on a car wash, you should definitely consider the SBA Express Loan.
SBA Loans For Car Washes: What You Need to Know
If your car wash business needs up to $350,000, and you’d like to get your money in as little as 30-45 days, an SBA Express loan could be the solution you’re looking for. SBA Express loans require significantly less paperwork than their more popular cousin, the SBA 7(a) loan, and can be used for a multitude of purposes, including commercial real estate, equipment, and working capital.
Car wash owners often use SBA Express loans for:
Financing working capital: Keeping your car wash business running on a day to day basis is no easy feat— and if you need an extra boost (especially if you’ve had to deal with unexpected expenses), an SBA Express loan could be the perfect fix.
Building a new car wash Building a car wash from the ground up isn’t cheap— but fortunately, the SBA Express loan can finance pretty much all general construction, costs, including safety equipment, security systems, and even landscaping.
Purchasing an existing car wash: If building a car wash from scratch isn't your thing, you may want to simply buy an existing one— and an SBA Express loan can help you do so.
Refinancing SBA-eligible business debt: Business debt being offered to you at high interest rates or on other unreasonable terms can often be refinanced with an SBA Express loan.
Buying out a business partner: Are you looking to buy your partner’s share in your car wash? You might be able to do so with an SBA Express loan.
SBA Microloans, SBA 7(a) Loans, and SBA 504 Loans Are Also Great Options for Car Washes
SBA Express loans are one of the fastest and easiest forms of SBA financing— but there are other SBA loan options you should know about, too. These include:
SBA 7(a) Loans: The most popular form of SBA financing, the 7(a) loan is offered in amounts of up to $5 million, and typically takes somewhat longer to close than the Express loan. Like Express loans, 7(a) loans can be used for working capital, equipment, and commercial real estate.
SBA 504 Loans: These loans, which are offered in amounts of up to $5.5 million, can only be used for heavy equipment and commercial real estate. However, they can boast significantly lower interest rates than most other kinds of SBA financing.
SBA Microloans: Designed for very small businesses or businesses than only need a little bit of cash, Microloans are offered in amounts of up to $50,000 and can close in as little as 28 days.