SBA 7a — the workhorse program. $50K–$5M, 10-year term for equipment, 25-year term if real estate is included, 10% down typical, prime + 2.75–4.75% rate. SBA 504 — for real estate + equipment combos, 25-year term, lower fixed rate, requires CDC + bank stack. SBA Express — faster turnaround for loans under $500K, slightly higher rate, 50% SBA guarantee instead of 75%. Most laundromat acquisitions use 7a; multi-store operators with real estate use 504.
Why SBA for Laundromats
Three reasons. (1) Down payment as low as 10% — conventional commercial loans want 25–30%. (2) Long amortization (10–25 years) — keeps monthly payment low and DSCR healthy. (3) First-time buyer eligible — no required time-in-industry, no required revenue history. The SBA guarantee makes lenders comfortable underwriting first-time laundromat buyers who otherwise would be denied conventional financing.
SBA Application Reality
SBA 7a applications typically take 45–90 days from complete submission to funding. They require borrower-paid expenses (appraisal $2K–$5K, environmental $2K–$8K, legal $1K–$5K) that are non-refundable if the deal falls through. The SBA Readiness Quiz pre-screens you so you don't spend $5K–$15K of borrower expenses on an application that's structurally unlikely to fund.
Frequently Asked Questions
Can a first-time buyer get an SBA loan?
Yes — SBA 7a is the dominant first-time buyer financing for laundromats. No required industry experience. The lender will want to see relevant transferable skills (operations, finance, real estate) and may require a management training requirement (often satisfied by the prior owner's transition assistance).
Should I use 7a or 504?
If the deal includes the real estate (you're buying the building), 504 is usually better — lower rate, 25-year term, fixed rate. If you're buying only the business (lease the building), 7a is the only choice. The Funding Matcher tells you which fits your specific deal.
What does it cost to apply?
Lender application fee is typically $0. Borrower-paid third-party expenses run $5K–$15K (appraisal, environmental, legal). SBA guarantee fee (1.5–3.75% of loan amount) is rolled into the loan. Plan to have $5K–$15K available out-of-pocket during the application process.