Car Wash Feasibility Study in the New York-Newark-Jersey City, NY-NJ Metro Area

New York against the national picture

Volume in New York reaches 145 approved loans for car wash businesses, with gross dollars of $144.4 million over FY2017 to FY2026. The New York median loan is $415,000, a ratio of 0.45x to the class median nationwide, which is a lower figure. The location quotient, 0.61x, says car wash businesses take a smaller share of approvals in New York against the national pattern. Within the nation New York stands 4 of 458 across metro and micro areas for these loans, on this record, and locally the class is 15 of 39 against its local peers. The middle half of approvals sit between $50,000 and $1.6 million.

Car wash loans by program in New York

Under 7(a) the file shows 137 loans and the 504 program for 8, so an applicant in New York can see which program does the analysis for wash operations. For New York, the itemize of 504 holders is empty for wash operations. None of the New York approvals, 0.00%, is franchise-affiliated. Under 7(a), TD Bank, National Association holds the most car wash loans in New York with 31 loans and $9.4 million, trailed by New Millennium Bank with 14 and Manufacturers and Traders Trust Company on 7. Because SBA credits every loan to its present holder, in practice, the names for New York mark who stays them; they are not a statement about lending practice.

Place and timing for car wash businesses

By project county, Nassau County, NY leads with 15 loans, then Passaic County, NJ with 13 and Suffolk County, NY with 13. Volume was highest in FY2018, with 18 loans worth $12.3 million, and lowest in FY2020, with 9 loans worth $12.7 million.

Floors and limits on the New York car wash rates

New York should be viewed as a county-based number: SBA's recorded county, as filed, matched by name to 2023 areas, decides inclusion for wash operations. Cancellation after approval stands at 11.2% for New York car washes loans of FY2017 to FY2024; by the file, that is a floor, with the ceiling not printed. The charge-off rate is absent for New York: Loan Analytics withholds it because the funded car wash cohort for FY2017 to FY2021 is under 30 loans, which does not mean losses were nil. Tunnel washes and truck washes, counting mobile operators, are filed under one code, so the New York record cannot tell which kind it is.

What a study of car wash businesses in New York has to test

First of all, New York demand has to be tested: site access and queue room, and weather and seasonal swings. Lending history of 145 loans reflects what lenders did for wash operations, and says little about a specific corner. Coverage of debt service should survive an opening slower than planned, because some New York approvals fell through and some were charged off. Last, at present, the appraisal of a New York site for car washes should address volume the early years miss, along with equipment with little collateral value. The budget covers equipment replacement cycles as well as water, sewer and reclaim systems, and the car wash sum should be judged against the middle half of New York loans, $50,000 to $1.6 million. No approval is guaranteed by any of this; it only offers lenders and applicants a common reference in New York.