SBA 7(a) Car Wash Feasibility Study in Massachusetts

Massachusetts car wash lending in SBA's records

In Massachusetts, SBA 7(a) approved 39 loans in the car wash class. Across FY2017 to FY2026 in Massachusetts that came to $19.0 million gross. Counting car wash loans, Massachusetts ranks 18 across states for car wash under this program, and car wash sits 17 of 39 among Massachusetts classes. A median of $93,500 is 0.12x of the national car wash median under SBA 7(a), so Massachusetts runs below the norm. For car wash in Massachusetts, the middle half spans $25,000 to $554,000, and franchise flags mark 0.00% of Massachusetts car wash loans.

Who holds the car wash loans, and where

The largest named car wash holder in Massachusetts is TD Bank, National Association: 10 loans worth $7.4 million; behind it Eastern Bank, 9 loans ($1.3 million). Holders in Massachusetts are those SBA currently lists. The Massachusetts car wash county count starts with Middlesex at 11, Essex at 9, Plymouth at 5, Norfolk at 4, Barnstable at 3.

Timing of Massachusetts approvals

The Massachusetts car wash calendar shows 4 loans ($890,000) in FY2019, then in Massachusetts 6 in FY2020 ($2.3 million), and in Massachusetts 7 in FY2021 ($4.9 million), 4 in FY2023 ($792,400) and 3 in FY2024 ($2.9 million) against Massachusetts's peak of 7 in FY2021.

Car wash cancel and charge-off floors

In Massachusetts, approval did not always mean a car wash loan: of FY2017 to FY2024 Massachusetts approvals, at least 25.8% ended in Massachusetts cancellation, with 29.0% the ceiling if undisbursed car wash loans are added. The car wash cohort funded in Massachusetts is too small, so Massachusetts holds no stable charge-off rate for car wash loans in Massachusetts funded FY2017 to FY2021; Massachusetts withholds the rate, and Massachusetts lenders should not read it as zero.

Massachusetts car wash plans: what to test

Washes in Massachusetts contend with weather, land cost and zoning. A study should present traffic and visibility at the site, rival washes and detailers in reach, and which of tunnel, in-bay or self-serve the corridor can support. Water use, discharge permits and winter operation affect both cost and revenue, and equipment should be compared with loans near $93,500. Coverage needs to hold in a snowy season with a membership-plan case beside a pay-per-wash case, and an appraiser will treat the site as a special-purpose property.

Massachusetts washes: format unseen

Mobile, truck and car washes all sit in one code, so Massachusetts readers cannot see whether a loan funded a tunnel, an in-bay unit or a self-serve bay, and the study must name its own.