SBA 7(a) Car Wash Feasibility Study in North Carolina

Large loans for a tunnel business

Car washes in North Carolina borrow big under SBA 7(a). Over FY2017 to FY2026 the state logged 51 car wash approvals, together worth $94.8 million at gross, with a median of $1.2 million is 1.48x the national 7(a) median for car washes. The middle half stretches from $561,750 to $3.3 million, which is the range of a real estate and equipment purchase for an express tunnel, not a self-serve bay. North Carolina ranks 13 among states for the class, but the class occupies 17 of 39 positions within the state, so car washes are a notable specialty and not a core of local SBA lending. Franchises make up only 3.9% of loans.

A spike in FY2020 and equal lenders

FY2020 stands out, with 11 loans and $29.1 million, followed by 10 loans and $13.3 million in FY2021. Since then volume has dropped to 2 loans in FY2024, though the $9.9 million that year shows individual loans remained large, and to 2 loans and $2.5 million in FY2026. The lenders listed each show 5 loans: Celtic Bank Corporation with $12.9 million, TowneBank with $6.1 million and Wells Fargo Bank National Association, whose total is a mere $866,000. SBA gives the present holder of each loan, so these are holdings and not descriptions of policy. Mecklenburg County has 7 loans and New Hanover 6, and Buncombe, Forsyth, Gaston, Onslow and Wake have 3 each.

Outcome floors and the coding note

North Carolina washes approved through FY2024 show a 6.7% cancellation floor and an identical 6.7% ceiling. No charge-off rate is quoted for these wash loans, since the early disbursed group is thin; do not take the blank for zero. A single code spans passenger washes, truck washes and mobile units. A North Carolina project that is really a truck wash or a mobile operation is therefore only roughly captured, so the dollar sizes above best describe fixed-site passenger-car washes.

What the study for a North Carolina wash has to test

Volume is everything for a wash, so the study must estimate cars per day from traffic counts, nearby residential density and the competing tunnels within a few minutes' drive. It should convert that into membership and single-wash revenue, test the chemical, water, labour and utility costs, and show how a rainy or cold stretch cuts the numbers. Because the loan range is wide, the study must justify equipment against the lot, including stacking space for queued vehicles. Zoning and stormwater rules can change the site's cost and timeline. Debt service has to be covered by a conservative first-year case, and an appraiser must pull apart real estate value and the going-concern value of the wash.