One Stop Loan: SBA Ground-Up car wash loans are wonderful but they require the borrower to secure the permit prior to closing the loan. It takes months to purchase the land and complete your architectural and engineering drawings to secure a city permit and the typical land seller will not wait for months to close on the land. To overcome this dilemma SBA-Capital developed a one-stop close that allows the borrower to close the land plus the construction and long-term permanent loan.
Select a proven General Contractor that designs and constructs car washes in your area and they will provide you with an approximate cost to construct your Car Wash Express Tunnel. An example may be $3M for construction plus $1M for land. Your General Contractor will provide you with a hypothetical Pro Forma that will be updated and finalized soon as you have your site identified.
Locating and closing your site: Your General Contractor or SBA-Capital can provide a list of “Car Wash Real Estate Specialist” to locate an acceptable site that meets or exceed a computerized site analysis and is acceptable to the lender. Your specialist will also determine if the city will issue a car wash permit on the proposed site. A City permit must be issued prior to closing the loan.
Architectural and Engineering drawings: Your General Contractor will provide a list of car wash design experts you can select from and engage to design your car wash.
General Contractor provides turnkey cost: The General Contractor calculates a price based on the architectural plans/specification and submits to SBA-Capital for bank underwriting. Soon as the bank approves their underwriting, the General Contractor applies for the City permit.
Loan request: SBA-Capital will need the following information to submit your loan request:
- Pro Forma prepared by your General Contractor.
- Last three years personal tax returns.
- Personal Financial Statement.
- SBA-Capital’s standard Bank Application
If the above meets the Banks lending criteria, you will receive a Letter of Intent for your review describing all the terms and conditions associated with the loan including monthly payments and interest rate.
Lender orders appraisal: The lender will order an appraisal which typically takes up to 30 days and the City will typically issue a permit in 30 to 60 days.
Loan Closing: Soon as the permit is issued, and the appraisal has been approved, the lender will close the construction and 25-year permanent SBA Loan
Time Frame: It typically takes up to nine months to complete the above plus up to one year to construct the wash depending on weather and availability of contractors.
Summary: It is important to engage an experienced General Contractor and Lender that understands and specializes in the car wash industry.