SBA 7(a) Car Wash Feasibility Study in Wisconsin

Wisconsin's 7(a) car wash record is wide and shallow. The median is $451,000, 0.57x the national 7(a) car wash figure, but the central half of the 27 loans runs from $219,450 to $1.3 million, and the total is $26.8 million, so the average loan sits far above the median. A few large tunnels sit beside many small washes. The state is 26th on loans counted, and washes are 21 of 39 among its classes. Franchised loans are 7.4%.

Milwaukee and a thin list

SBA lists no lender holding enough of these loans here, so none is named. Milwaukee County has 6 loans, and Fond du Lac, Kenosha, Ozaukee, Racine and Waukesha have 2 each, with Brown, Dane, Douglas and Eau Claire 1 each. The spread across lakeshore, central and northern counties shows the class is not tied to one metro.

Volatile dollars

FY2017 had 5 loans and $4.7 million, FY2018 one loan of $2.1 million, and FY2019 2 loans of $304,300. FY2020 had none. FY2021 and FY2022 each had 5 loans, at $5.4 million and $6.1 million. FY2023 had 2, FY2024 2 loans but only $534,100, FY2025 4 and $2.0 million, and FY2026 a single loan of $3.2 million. A single loan of $3.2 million or $2.1 million shows what one tunnel can do to a year.

Limits

Cancellation and charge-off percentages are not available, the cohorts being small. Fixed washes, truck washes and mobile units are coded together.

What a Wisconsin wash study has to test

Winter is the decisive factor. A study should show monthly volume with a cold-season drop, the effect of road salt on demand, freeze protection for equipment, and the revenue from memberships that smooth the year. It should add traffic counts, competing washes, water and sewer capacity, and the cost and useful life of equipment. Since a wash is largely machinery, the appraiser should value the land and building separately from the equipment. Coverage should be tested on two weak winters, and the study should describe the format and why it fits the site. Where a project replaces an older wash, the report should also show the cost of removing underground tanks, old drains or oil separators.