CAR WASH LOAN PROGRAMS CUSTOMIZED FOR YOUR BUSINESS

The primary loan program that I offer is the SBA 7(a) program. This is a program whereby the lending institution makes a direct loan against the car wash facility, and the government guarantees a portion of that loan. This government guaranty allows the lender to assume more risk than they would in a conventional loan scenario. This program is widely utilized in the small business community, funding approximately $16 billion per year in commercial loans.

Typical Rate
I try to keep it simple by quoting only one rate, not the highest, and not the lowest. Prime + 2% is a fair and typical rate for this program. The rate is floating, and adjusts quarterly (if Prime changes).

Equity Injection
0% for a refinance, 10-25% for an acquisition (depending on the situation)

Subordinate Financing
Seller-held second mortgages are allowed, as long as the applicant is injecting at least 10% cash.

Loan Term
The term will typically range between twenty and twenty-five years. It is a fully-amortizing loan (i.e. no balloon payment).

SBA Fee
This fee is charged in lieu of an origination fee, and is paid directly to the U.S. Small Business Administration. (The lender is not permitted to charge an origination fee under this program.) This fee is effectively 2.7% of the loan amount, and can be included in the loan proceeds.

Maximum Loan Amount
$2MM