Industry data
Financing for car washes: what the loan data shows
766 SBA 7(a) loans went to car washes recently, at a median of $368,000. The lenders that make them, the terms they write, and what underwriters look at.
766 SBA 7(a) loans went to car washes in the most recent fiscal years, at a median of $368,000 over 125 months. 47.8% went to new or under-two-year-old businesses, and the most active lender was The Huntington National Bank.
What a car washe loan actually looks like
These are approvals, not advertised ranges. Computed from SBA 7(a) loan-level FOIA data released 2026-06-30.
| Measure | Car washes | All 7(a) borrowers |
|---|---|---|
| Loans approved, fiscal years 2023 to 2026, using data released June 2026 | 766 | 214,102 |
| Median loan | $368,000 | $150,000 |
| 25th - 75th percentile | $60,000 - $1,712,500 | $50,000 - $500,000 |
| Median term | 125 months | 10 years |
| Median initial rate | 9.75% | 10.25% |
| Share to new businesses | 47.8% | 33.6% |
| Charge-off rate, FY2010-19 | 5.0% | 7.1% |
What stands out
Reading these figures against all 7(a) borrowers:
- Loans here run larger than average. The median of $368,000 is 145% above the $150,000 national median. Expect lenders in this market to be geared toward bigger deals, and expect a small request to get less attention.
- New businesses do well here. 48% of these loans went to startups or businesses under two years old, against 34% nationally — an unusually open market if you have no trading history.
- Lending here is fragmented. The top three lenders made only 18% of these loans between them, so no single institution owns this market. That is good news: it means shopping genuinely pays.
- Rates run lower here. The median initial rate of 9.75% is 0.50 points below the 10.25% national median, which usually tracks loan size and perceived sector risk rather than geography.
- This market has performed well. Its FY2010-2019 charge-off rate of 5.0% is below the 7.1% overall figure, which is part of why lenders compete for it.
What lenders look at in this sector
Express tunnel and self-serve models underwrite very differently. Tunnels are equipment-and-real-estate heavy with strong throughput economics; the monthly unlimited membership base is the asset lenders now look at hardest.
Which lenders actually fund car washes
Ranked by loans approved in this niche. The median, startup share and rate describe each lender's own loans to car washes, not its national averages — which is how you spot a genuine specialist.
| Lender | Loans | Median loan | Startup share | Median rate |
|---|---|---|---|---|
| The Huntington National Bank | 54 | $51,050 | 33% | 10.00% |
| U.S. Bank | 45 | $25,000 | 24% | 9.49% |
| TD Bank | 41 | $25,000 | 61% | 10.50% |
| Celtic Bank Corporation | 36 | $1,549,850 | 50% | 10.00% |
| Wells Fargo Bank | 28 | $15,000 | 96% | 13.50% |
| Live Oak Banking Company | 24 | $2,027,550 | 54% | 9.00% |
| Readycap Lending, LLC | 23 | $1,145,000 | 30% | 10.25% |
| Stearns Bank | 16 | $4,150,000 | 75% | 9.75% |
| Newtek Bank | 16 | $137,500 | 12% | 10.75% |
| Paradise Bank | 15 | $680,000 | 60% | 9.00% |
Where these businesses borrow
Most active states for car washes: California (89), Texas (87), Florida (69), Ohio (44), Michigan (40), Illinois (37).
Which financing fits
| Product | Fit for this sector | Typical cost |
|---|---|---|
| SBA 7(a) | The dominant vehicle in this niche | 10.0% - 14.0% APR |
| Equipment financing | For the hard assets, often cheaper separately | 7.0% - 30.0% APR |
| Business acquisition loan | If you are buying an existing operation | 10.0% - 14.0% APR |
Before you apply
- Check coverage first. Run the payment through the affordability calculator at 1.25x.
- Shortlist from the lender table, favouring ones whose median loan here is close to what you need.
- Assemble the documents — see the checklist.
- If you are buying rather than starting, read business acquisition loans first; the injection rules and diligence are different.