SBA-Capital FAQ
Your Complete Guide to Business Financing
(Prime Rate is currently 8.5%)
Rate adjusts quarterly based on prime rate movement.
Are Interest Rates Too High?
Not if EBITDA earnings support the rate!
Stress Test Example: A car wash with EBITDA of $817,210 qualifies for a loan even at 15% interest rate with a 1.31 DCR (Debt Coverage Ratio).
Conclusion: High EBITDA earnings help mitigate high interest rates.
Equity Requirements:
- 10% equity - If you have owned a similar business
- 20% equity - If you have never owned a business in this specific industry
Creative Equity Solutions:
- Rental Property: Put 10% cash down and monetize up to 10% of your rental property equity
- Limited Partners: Anyone with less than 20% ownership can contribute most of the equity (no personal liability for limited partners)
- IRA Funds: Use your IRA for SBA loan equity - one of the best-kept secrets in the industry!
100% Expansion Financing: If you have equity in your existing business, we can likely finance 100% of your expansion loan.
Yes! Use our examples or contact Hershel for assistance.
Sample EBITDA Calculation Example:
Car Wash Financial Summary (4-year average):
- Total Revenue: $478,967
- Earnings Pre-tax: $114,489
- Add-backs include: Shareholder wages, depreciation, charitable contributions, vehicle expenses, etc.
- Final EBITDA: $291,957
This EBITDA projects a 5% increase over the next four years, providing strong loan qualification potential.
Visit our Free EBITDA Software or contact Hershel for detailed analysis!
Seven Essential Tools to Determine Car Wash Earnings:
- Purchasing an existing business - Comprehensive analysis methods
- Restructuring opportunities - Can be a game-changer for profitability
- Project EBITDA earnings - For new or existing businesses
- Successful renovation options - Three proven strategies with videos
- Stress test your loans - Ensure financial viability
- Secure a proforma - For renovation or ground-up construction
- Risk minimization tools - Comprehensive risk assessment
These tools help you make informed decisions before you purchase or build.
Success Stories:
"I can't thank everyone at SBA-Capital enough for making this possible. Working with you, Mike, Steve, Judy, Abigail, and Roxie were terrific. You guys made it a very smooth and easy process."
- Larry Ayers, Owner, All American Car Wash & Lube
100% Financing Examples:
- $7M restructuring - Including $1.5M cash out for renovation + reduced debt service by over $20K monthly
- $1.9M refinancing - Reduced monthly payments by $3,500
- $4M business debt refi - Plus $400K cash out with 7.32% SBA 504 blended rate
- $5M restructure - For facility renovation and property acquisition
Loan Options Available:
- $1M to $40M loans - Flexible financing solutions
- Renovation success - Projects that double revenue
- Portfolio growth - Expand your car wash empire
Risk Management Tools:
- Stress test your future and present loans
- EBITDA analysis and debt coverage ratio calculation
- Customized business loan solutions
- Hospitality industry library ($2M to $25M)
Why Choose SBA Loans?
Congress established SBA business loans to create jobs for our economy and assist borrowers who may not qualify for traditional bank loans requiring enormous equity contributions.
SBA vs. Conventional Loan Comparison:
| Loan Type | Equity Required | Loan Term |
|---|---|---|
| SBA Loans | 10-20% | 25 years |
| Conventional | 30-35% | 5-7 years |
Key Benefits: Lower equity requirements and extended repayment terms help reduce monthly payments significantly.
Free Financial Car Wash Proforma
Relied upon by Investors and Lenders
Distributors for car wash manufacturers throughout the US will provide a free computerized proforma for your:
- Existing car wash renovation
- Ground-up construction on a specific site
What You Receive:
- Invaluable statistical data
- Connection with your local distributor
- Years of experience in the car wash business in your area
SBA-Capital Integration: We use this information in our proprietary EBITDA software to determine if the car wash will qualify for a loan and if this is a good investment for you.
Contact Sonny's CarWash Factory's representative in your state and invite them to visit your site for a free proforma.
SBA-Capital Renovation Loan Specialization:
- Free EBITDA Analysis - Immediately determines if 100% financing is available
- Existing wash renovation - Loans available now
- Purchase and renovate - We include both purchase price and renovation cost in your loan
See six actual car wash renovations with detailed case studies and videos demonstrating the profitability of renovation projects.
Contact Hershel for a quick response to your specific renovation needs.
SBA 504 7.32% Blended Rate Program
Manage interest rate volatility with our popular fixed-rate solution!
SBA 504 Program Uses:
- Re-Fi 100% of your current loan
- Cash-out with Re-Fi (depending on appraisal)
- Purchase existing wash - Use 504 program
- Purchase and renovate - Combined financing
- Ground-up construction - New development financing
- Portfolio growth - Expand your business empire
We stress-test the financial health of your loans to ensure long-term success and sustainability.
Use Your IRA for SBA Loan Equity
Start or expand your business and increase your working capital using IRA funds!
How It Works:
You must engage a specialized trust company such as:
- Millennium Trust
- Equity Trust
These companies specialize in being custodian trusts for self-directed IRA accounts.
Key Benefits:
- You maintain 100% control of your money
- Trust serves as your custodian manager
- Trust handles annual tax return filing with the IRS
- This is one of the best-kept secrets in the industry
Basic SBA Loan Requirements:
- Citizenship: Must be a US Citizen or have a Green Card
- Credit History: No previous defaults on SBA loans (including student loans)
- Credit Score: 650 or higher (may vary depending on credit bureau information accuracy)
Important Note: SBA-Capital's minimum loan amount is $500K. For smaller loans, search for "SBA Express loans."
Understanding common reasons for loan rejection helps you prepare a stronger application.
Common Rejection Reasons & Solutions:
- Insufficient cash flow - Improve EBITDA through operational efficiency
- Poor credit history - Work on credit repair before applying
- Inadequate collateral - Consider alternative collateral options
- Incomplete documentation - Ensure all required documents are provided
- Weak business plan - Develop comprehensive projections and market analysis
We provide solutions to common reasons why business loans are not approved, helping you navigate potential obstacles before they become problems.
Creating the Best Loan Option for Your Investment
"Just the Facts" - No Guessing
Five Tools Our Software Uses to Analyze Loans:
- Cash flow analysis - Detailed EBITDA projections
- Debt coverage ratio - Ensuring adequate coverage
- Stress testing - Multiple interest rate scenarios
- Market comparison - Industry benchmarking
- Risk assessment - Comprehensive risk evaluation
Comprehensive Support: Visit our Car Wash Industry White Paper with comprehensive reviews and case studies.
Personal Service: Hershel will work with you from creating the best loan request until closing.
Step 1 - Borrower Qualification:
- Submit last three years' tax returns
- Provide financial and tax returns for all closely held companies
- Secure a free proforma from your local car wash distributor
- Include revenue projections, car wash volume, traffic counts, and construction costs
Step 2 - Professional Consultation:
- Connect with local manufacturer representatives
- Confirm city approval for car wash construction
- Order environmental report and certified survey
- Engage architects and civil engineers specializing in car washes
Step 3 - General Contractor Requirements:
- Qualified contractor with proven performance history
- Financial capacity to complete the project
- Provide list of critical sub-contractors
- General liability and workman's compensation insurance
- Itemized equipment list attached to contract
SBA-Capital provides free guidance on all of the above steps.
Ready to Get Started?
Contact Hershel Pierce for personalized guidance on your business financing needs
Email: pierce.pavbank@gmail.com Text: 214-726-9000Business Financing is what we do — Creating Custom Solutions is who we are