SBA 504 Car Wash Feasibility Study in Ohio

The SBA 504 book for car washes in Ohio

Car washes in the state received $34.1 million in gross SBA 504 dollars across 41 Ohio loans between FY2017 and FY2026. Half the Ohio loans sit at or below $575,000; the middle half of car washes spans $314,000 up to $1.2 million. Relative to car washes nationwide under SBA 504, the Ohio figure is 0.53x, a downward tilt for car washes in Ohio. Franchised borrowers account for 7.3% of the car washes loans in Ohio.

By number of loans, Ohio sits at rank 7 among states for SBA 504 lending to car washes, and the class stands 4 of 39 among the classes in Ohio. Approvals in Ohio peaked in FY2022 at 9 loans worth $6.1 million, while FY2026 shows 4 loans and $4.5 million. Ohio stands at rank 7 among states by count, as the rank above shows, with loans smaller than the national median.

Most Ohio loans sit with Growth Capital Corp., which holds 9 worth $10.1 million. Further Ohio holders include Alloy Development Co., Inc. with 8 loans worth $7.1 million, Community Capital Development Corporation with 6 loans worth $5.5 million and Ohio Statewide Development Corporation with 6 loans worth $3.0 million. Growth Capital Corp. stands first among car washes holders in Ohio; SBA's file covers 41 loans held now or before. Among counties of Ohio, Lake shows 5 loans; next are Butler with 4 and Summit with 4. Further down the list stand Franklin 3, Mahoning 3 and Medina 3.

Reading the outcome floors for Ohio car washes

Within Ohio, FY2017 to FY2024 approvals report cancellations of 5.7% or more, against a ceiling of 8.6% that adds loans never disbursed. On losses, Ohio's funded group is too thin, so nothing about losses follows. Ohio's car, truck and mobile washes are filed under a single code, mixing several formats. Only SBA lending is counted in Ohio.

Testing an Ohio car wash

Pick the format before pricing anything, because an express tunnel, an in-bay automatic and a self-serve row have little in common beyond water. Then size demand from the road near Lake: daily vehicle counts, the turn-in at the site and the washes already drawing that traffic. Monthly membership gives cash a floor but shrinks when cancellations outrun sign-ups, so run it at cautious rates. A 504 loan funds the site, so drainage, grading and permit timing belong in the budget, with revenue starting only after they clear. Chemicals, utilities and reclaim equipment all need quotes behind a loan near $575,000. Appraisers treat a wash as special-use land.