SBA 504 Car Wash Feasibility Study in Illinois

Illinois car wash lending: dollars and loan size

In Illinois, car washes took 44 loans under SBA 504; gross Illinois approvals total $51.3 million from FY2017 through FY2026. $1.1 million is the Illinois median, and the middle half of car washes loans stretches from $684,750 to $1.5 million. Against the national car washes median under SBA 504, the Illinois median stands at 0.97x, smaller than the nationwide car washes book carries. A franchise listing appears on 4.5% of the loans in this car wash cell for Illinois.

For SBA 504 loans to car washes, Illinois stands at rank 5 among states, while within Illinois the class ranks 7 of 39. FY2018 was the Illinois high point, 7 loans and $8.9 million together, and FY2026 lists 1 loans worth $1.6 million. Illinois ranks near the top for 504 car wash lending, so this cell shows a large state where operators finance a site and equipment with a development company and a bank together.

Most Illinois loans sit with SomerCor 504, Inc., which holds 19 worth $24.8 million. Next come Small Business Growth Corporation: 19 loans, $20.9 million in all. SBA's Illinois file puts SomerCor 504, Inc. first among 44 loans, where each name holds or held car washes loans; none is rated. Among counties of Illinois, Cook shows 15 loans; next are Dupage with 7 and Kane with 4. Lower on the list are Lake 3, Mchenry 2 and Stephenson 2.

Illinois outcomes: cancellations, charge-offs and code limits

Among Illinois approvals through FY2024, a cancellation floor of 8.1%, against a ceiling of 13.5% that adds loans never disbursed. Charge-offs cannot be given: funded Illinois loans cannot carry a rate, and silence is not a rate. One code serves car, truck and mobile washes, and Illinois formats that earn very differently end up in the same count. Financing without SBA never enters Illinois's tables.

What an Illinois car wash study must prove

Traffic decides volume, so measure daily vehicle counts on the road near Cook and the share a wash can pull. Express tunnels, in-bay automatics and self-serve bays differ in cost and labor, and the plan must say which one it builds. Membership revenue steadies cash but depends on churn, so test it at conservative sign-up and cancellation rates. Because 504 finances the real estate, site work, drainage and permits belong in the budget, with no revenue counted before they clear. Utilities, water reclaim systems and chemicals are material costs, and a loan near $1.1 million needs a firm equipment quote. Weather swings counts through the year.