How do I get a business loan for a laundromat?

Laundromat cash-flow shape — why lenders like it

A stabilized laundromat generates highly predictable recurring revenue: coin-op or card-based machines collect small-dollar transactions continuously with minimal labor and no receivables. The low-labor model (many laundromats run with 1–2 part-time attendants) keeps the fixed-cost base low, making DSCR calculations favorable once the location is at operating capacity. Lenders underwriting laundromat loans focus on location demographics (density of apartment renters without in-unit laundry is the primary revenue driver), machine count and condition, and historical average-revenue-per-machine.

SBA 7(a) — new build, acquisition, and expansion

SBA 7(a) is the primary financing vehicle for laundromat acquisitions and new builds. Maximum loan $5 million; rates prime + 2.25–4.75%; terms up to 10 years for equipment and working capital. For acquisitions, the SBA requires a business valuation from an approved appraiser and a review of the seller's tax returns and machine maintenance records. New-build laundromats — particularly in high-density rental areas — qualify with a credible business plan, site lease, and personal credit of 680+. Franchise laundromat models (some equipment manufacturers offer franchise-style build-out programs) have a faster SBA approval path.

SBA 504 — owner-occupied real estate

If you're purchasing the building that houses your laundromat, SBA 504 provides long-term fixed-rate financing for the real estate component. Structure: a conventional bank funds ~50% of the purchase price, a Certified Development Company (CDC) funds ~40% using SBA-guaranteed debentures at a fixed 20–25 year rate, and the borrower contributes a minimum 10% down payment. Owner-occupied is required — you must operate the laundromat in the building you're financing. Rates on the SBA 504 debenture are typically 0.5–1% below current 20-year Treasury yields.

Equipment financing — washer and dryer packages

Commercial-grade industrial washers and dryers run $5,000–$15,000 per unit. A 20-machine laundromat represents $100K–$300K in equipment alone. Equipment financing secures the loan against the machines themselves — lenders typically fund 80–100% of the equipment cost at 5–10 year terms. IRS Section 179 allows first-year expensing of qualifying commercial laundry equipment, which meaningfully reduces the after-tax cost of a new machine package. Keep equipment serial numbers and purchase invoices organized — lenders verify equipment existence and value.

Apply at ClearValue Lending

Start. Your file routes to the funding partners best matched to your NAICS 8123 classification, laundromat type, and financing purpose. ClearValue Lending is a funding platform, not a lender or financial advisor.