SBA 504 Car Wash Feasibility Study in Colorado

The Colorado SBA 504 car wash book at a glance

SBA's files show 43 approvals under 504 for car wash projects in Colorado between FY2017 to FY2026, worth $52.1 million. Colorado's car wash book under SBA 504 stands 6 across the states by loan count, while car wash sits 5 of 39 among Colorado's asset classes. The median car wash loan in Colorado is $1.0 million; against the national centre for car wash loans under SBA 504, 0.94x is the ratio, so Colorado projects take lighter amounts than their peers elsewhere. From $570,000 up to $1.6 million lies half of the loans across Colorado. The franchise share of Colorado loans is 2.3%. Across 43 Colorado car wash loans, no single metric, the $1.0 million median included, sets the state clearly apart, which leaves lenders, counties and years to carry the car wash page for Colorado.

Lenders, counties and timing in Colorado

Leading the certified development companies table for Colorado: B:Side Capital with 30 loans worth $29.8 million; Preferred Lending Partners with 6 loans worth $8.2 million. Read the 30 loans and $29.8 million for B:Side Capital with care: SBA lists each Colorado loan's present holder, so a Colorado lender in the list may have bought a car wash note rather than making it. Within Colorado, the counties with the most loans are Adams with 9, Jefferson with 8, Arapahoe with 5 and El Paso with 5. Timing tells a clear story for car wash in Colorado: approvals peaked at 9 loans, worth $9.1 million, in FY2017, and FY2026 brings 3 loans worth $6.5 million as the most recent year shown.

Colorado car wash: how to read the outcome floors

A floor of 14.7% for cancellations, with the upper bound at 14.7%, describes FY2017 to FY2024 Colorado car wash approvals, so open loans change nothing. Between FY2017 and FY2021 too few of the 43 car wash loans were funded in Colorado to support any car wash charge-off figure; we withhold it, and the car wash gap is not a zero. Every Colorado car wash rate above is a minimum, since open car wash loans among the 43 can yet fail. Keep this caveat when reading Colorado's 43 loans: SBA draws no boundary divides Colorado's tunnel car washes and mobile operators; every kind is filed under a single classification.

Testing a Colorado car wash loan application

In Colorado, two loans sit behind each of the 43 504 car wash projects: one from a Colorado certified development company, one from a separate Colorado lender. A car wash study has to demonstrate that the acquired car wash site and its improvements can carry the debt service on both notes, with Colorado cash from the borrower. A Colorado car wash study tests tunnel capacity relative to corridor traffic and membership uptake. Wash equipment, water equipment, vacuum areas and stacking space set car wash budgets in Colorado. Test the Colorado car wash cash flow at the $1.0 million median and at $1.6 million: coverage which survives only under a good case will not be enough. Appraisal of a Colorado car wash rests on stabilised volume and pricing, and our forecast gives both. Institutions such as B:Side Capital appear in this Colorado record; the record is history, and what B:Side Capital or any other Colorado lender wants from a car wash study is its own to state.

Nothing above predicts how a given Colorado car wash loan will perform. 43 approvals are the backdrop in Colorado; the site-specific Colorado analysis comes from Loan Analytics' car wash study, signed by Daniel Smith, MAI, and no Colorado approval is implied.