SBA 504 Loans for Laundromats and Dry Cleaners
Dry cleaners and laundromats, while less in demand today than in previous decades, are still vital parts of the economy. The laundromat segment is expected to generate $5 billion in revenue in 2018, and dry cleaners are expected to earn around $9 billion during the same period.
Better Financing Starts with More Options$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1M offered by a Credit Union at 5.1%Click Here to Get QuotesCan Dry Cleaners and Laundromats Benefit from SBA 504 Loans?
Dry cleaners and laundromats, while less in demand today than in previous decades, are still vital parts of the economy. The laundromat segment is expected to generate $5 billion in revenue in 2018, and dry cleaners are expected to earn around $9 billion during the same period.
Both of these represent savvy business opportunities in the right market. For business owners seeking to get started, an SBA 504 loan might be a great solution. With this type of loan, you can purchase the real estate to construct a new facility and even build the facility itself. You can also renovate, improve, or retrofit and existing facility, and use the funds to pay for equipment.
For both dry cleaners and laundromats, equipment represents one of the most significant costs. Washers and dryers can cost over $1,000 each depending on the quality. Dry cleaning equipment, such as press machines and steam boilers can cost tens of thousands of dollars each.
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!
Related Questions
What are the eligibility requirements for SBA 504 loans for laundromats and dry cleaners?
The eligibility requirements for SBA 504 loans for laundromats and dry cleaners are as follows:
- The business must be a for-profit, operating small business.
- The business must occupy at least 51% of the project’s total square footage.
- The business must have a tangible net worth of less than $15 million and an average net income of less than $5 million after taxes for the preceding two years.
- The business must be able to demonstrate the ability to repay the loan.
For more information on SBA 504 loans, please visit https://sba504.loans.
What are the benefits of SBA 504 loans for laundromats and dry cleaners?
SBA 504 loans offer a number of benefits for laundromats and dry cleaners. These loans can be used to purchase the real estate to construct a new facility, build the facility itself, renovate, improve, or retrofit an existing facility, and pay for equipment. Equipment is one of the most significant costs for both dry cleaners and laundromats, and SBA 504 loans can help cover these costs.
SBA 7(a) loans can also be great for laundry delivery services. These loans can help you start a laundry delivery service or expand your current laundry company into the laundry delivery business.
What are the maximum loan amounts for SBA 504 loans for laundromats and dry cleaners?
The maximum loan amount for SBA 504 loans for laundromats and dry cleaners is $5 million. This loan can be used to purchase the real estate to construct a new facility, build the facility itself, renovate, improve, or retrofit an existing facility, and pay for equipment. Source
What are the interest rates for SBA 504 loans for laundromats and dry cleaners?
The interest rate for SBA 504 loans for laundromats and dry cleaners is typically fixed for the life of the loan and ranges from 4.5% to 5.5%. The rate is determined by the market and is based on the 5- and 10-year U.S. Treasury rates at the time of loan closing. The rate is also affected by the size of the loan and the term of the loan.
For more information, please visit SBA 504 Loans for Laundromats and Dry Cleaners.
What documents are required to apply for SBA 504 loans for laundromats and dry cleaners?
To apply for an SBA 504 loan for laundromats and dry cleaners, you will need to provide the following documents:
- Business plan
- Personal financial statement
- Business tax returns
- Business financial statements
- Business licenses and permits
- Lease or purchase agreement for the property
- Cost estimates for the project
- Resumes of key personnel
For more information, please visit SBA 504 Loans for Laundromats and Dry Cleaners.