Car Wash Loans

Car Wash Loan Car Wash Loan

We are pleased to offer car wash loans for the purchase or refinance of car wash properties nationwide. Select Commercial specializes in car wash financing for both seasoned operators and new owners.  Whether you are starting a new business, or expanding an existing business, obtaining the right car wash financing is almost as important as finding the right location for your car wash.  Many new owners underestimate the amount of capital needed to open and run a successful car wash operation.  Here are some of the typical costs that Select Commercial is able to finance: acquisition of the real estate and the business, furniture, fixtures, and equipment (FF+E), closing costs, working capital, and rehab/improvements.  There are many costs involved in purchasing or expanding a car wash and obtaining the right car wash loan is crucial. 


There are three main sources of car wash loans: the US Small Business Administration (SBA loans), which include 7(a) and 504 loans, seller financing, and conventional bank loans.  Most conventional lenders tend to steer clear of car wash loans due to the risk profile of the real estate and the business.  Many car washes are sold using seller financing, but these loans are often short-term loans that need to be refinanced rather quickly.  The overwhelming source for car wash loans today is the small Business Administration’s SBA loan program.  These car wash loans allow financing up to 90% LTV and offer terms as long as 25 years.  These loans are easier to obtain than traditional bank financing because the SBA offers its guarantee to the lender in the event of default.  This allows lenders to make riskier loans that conventional lenders might otherwise avoid.  As an example, the SBA 7(a) program allows for loan sizes up to $5 million – enough for even the largest car washes.  Further, since the SBA program is intended to finance small businesses, the proceeds of a car wash loan through the SBA can be used to purchase the business, as well as, the real estate.  Most conventional car wash lenders will only finance the real estate.


Many existing small business owners looking to refinance their loans, or obtain additional cash out, often find that they have trouble obtaining traditional bank loans due to their company’s size, specialized property type, credit rating, or difficulty producing tax returns. If you are starting up a new business or expanding an existing business, it may be possible for us to use projection-based income in order to qualify. Traditional banks can’t match the ability we have to “stretch the guidelines” to help your business grow. These loans have always been a large portion of our business. We actively lend on car washes, gas stations, restaurants, hotels and motels, bed and breakfasts, laundromats, service stations, bowling alleys, movie theaters, golf courses, marinas, retail stores, independent groceries, franchises, auto repair, manufacturing plants, liquor stores, health clubs, self-storage, mini-storage, parking garages, campgrounds, recreational facilities, RV parks, and many other single purpose properties. Let us help you start, purchase, refinance or grow your business! Our minimum loan size is $1,500,000.


It is important to choose a lender that has experience making car wash loans and understands how to analyze these transactions.  Call us today to discuss your car wash loan request!

Our Commercial Real Estate Loan Benefits

• Commercial real estate loans for car washes
• No upfront application or processing fees
• Simplified application process
• Up to 75% LTV, 90% with SBA
• Terms and amortizations up to 25 years
• Loans for purchase and refinance, including cash-out
• 24 hour written pre-approvals with no cost and no obligation

Recent TRUSTPILOT Reviews

Select Commercial Funding Reviews from TRUSTPILOT

A three year journey
"Thanks Stephen for all of your hard work in getting our deal closed! I appreciate your professionalism and patience throughout a complicated process. You always were there for my partner and I whenever we had questions and needed answers quick. It was a pleasure to have worked with you and Select Commercial!"


Recent Closings

Car Wash Loan Outlook for 2021 - Commercial Mortgage Rates

The COVID-19 pandemic seriously depressed the demand for apartment living space across the Unites States. One of the biggest factors that directly impacts apartment demand and household formation is a given market’s availability of jobs. The pandemic caused many people to be out of work and many other people to work remotely. Consequently, many prospective tenants such as new graduates lived with their parents or friends. With increased hiring in 2021 and many people returning to their in-office jobs, there has been a big rise in the demand for nationwide apartment housing. As more and more young graduates can return to work, this trend should continue throughout 2021. Commercial mortgage rates for apartment buildings have been at all-time lows throughout 2021 and experts don’t anticipate them to go up soon. The office and retail sectors did not fare so well in 2020 due to the pandemic. Many businesses shut down, brick and mortar retail shops had a hard time doing business and many companies implemented work from home policies. Many lenders were very conservative when considering commercial mortgage applications for these sectors. With vaccinations increasing and many states removing restrictions, business profitability has risen throughout 2021. In 2021, we are seeing companies hiring again after a dismal 2020. During 2021, it is estimated that more than 6.5 million workers will be added to company payrolls, many of them needing office space. Commercial mortgage lenders are not extremely bullish on the office sector and commercial mortgage rates, while attractive, are not as low as some other asset classes. Meanwhile, we are not seeing commercial mortgage lenders lend aggressively on retail properties in 2021. While the loans that lenders do fund may be at lower commercial mortgage rates, they aren’t as low as other asset classes and borrowers are having a difficult time obtaining high leverage loans in 2021.

Industrial properties are emerging well positioned from the pandemic and are expected to perform well in 2021 and beyond. The rapid growth of e-commerce, especially during the pandemic, is causing strong demand for industrial and warehouse space. 2021 has been a strong year for industrial absorption and sales prices of suitable industrial space has skyrocketed. Industrial properties currently are receiving very attractive commercial mortgage rates as this market is receiving a lot of attention. Experts believe that close to $578 billion of commercial mortgages and multifamily loans will be funded in 2021. This is over a 30% increase from 2020’s volume of $442 billion. As commercial mortgage rates remain at all-time lows, 2021 is a great time for prospective borrowers to look for commercial mortgage loans. Right now in 2021, commercial mortgage rates can be in the high 2% range for qualified properties and borrowers. Apartment loans above $6 million can qualify for rates in the mid- high 2% range while apartment loans below $6 million are generally being underwritten in 2021 in the low to mid 3% range. Many lenders are financing commercial mortgage loans for other asset types in the low to mid 3% range as well in 2021. Check out our low commercial real estate loan rates and use our commercial mortgage calculator to calculate monthly principal and interest.

The coronavirus pandemic caused major disruptions in financing for many single use properties, including car wash loans. Many locations were forced to close and remain closed for many months. Other properties were able to survive by operating outdoors or by offering pickup and delivery services. Financing for car wash loans in 2021 is available for those businesses that were able to survive the pandemic, remain in business, and demonstrate a path to profitability post pandemic. Lenders in 2021 want to offer car wash loans for those businesses that are deemed good credit risks and are able to make their payments. Car wash loans for businesses that have not returned to profitability in 2021 will found it very difficult to obtain financing.