SBA 504 Loans for Car Washes

Can Car Washes Use SBA 504 Loans?

In many areas of the country, new car washes are being constructed at a frenetic pace. Older car washes are being retrofitted with new equipment and new façades to attract customers. With an expected annual revenue of $11 billion and a growing number of businesses, this is an excellent niche for an aspiring business owner. So, whether you want to open a new location for your car wash business or simply expand your current one, an SBA 504 loan can help you achieve your goals.

What Can You Purchase With a 504 Loan Program?

With an SBA 504 loan, you can purchase many of the important things for your business. The funds can be used to purchase and develop real estate (grading, paving, etc.). You can also use it to purchase equipment, including the washing equipment, vacuums, and other vital pieces of machinery. However, SBA 504 loans cannot be used for working capital, or to purchase short-term equipment or supplies, such as cleaning fluids, soaps, or other equipment that will be used and thrown away.

Many Car Wash Owners May Wish to Take Advantage of the SBA 504 Green Loan Initiative

Car washes, especially older ones, are in a prime position to take advantage of the SBA’s go green initiative, which allows you to take out multiple 504 loans, with a loan limit of $5.5 million per project, not per business. With this program, a business can borrow up to $16.5 million, rather than just the conventional $5 million. To qualify, a business needs to purchase a building that uses 10% less energy than their previous building or make improvements to their current building that decrease energy use by 10%. Alternatively, they can qualify if they get 10% of their energy from an alternative source, such as solar or wind power, or purchase a building they are currently leasing and make upgrades to reduce its energy consumption by 10%.


We’re here to help you get the commercial financing you need. Simply fill out the form below for a risk-free consultation and a free SBA loan quote!