SBA lenders approved 434 7(a) loans to coin-operated laundries and drycleaners from October 2023 to June 2026, about $319 million from 183 lenders. The median loan was $447,500, about three times the national $150,300, at a median rate of 9.5%, below the national 10.25%. Acquisitions were 23.3% of loans, more than twice the national share, and 23.5% of loans were $1 million or more. Lenders decide on revenue they can verify in a cash-and-card business, the age of the machines, a lease that outlasts the loan, and utility costs that track how busy the store really is.
| Measure | Coin-Operated Laundries and Drycleaners | All industries |
|---|---|---|
| SBA 7(a) loans approved | 434 | 162,355 |
| Median loan | $447,500 | $150,300 |
| Middle half of loans | $150,000 – $940,000 | $50,000 – $500,000 |
| Loans of $1 million or more | 23.5% | 12.9% |
| Median rate at approval | 9.5% | 10.25% |
| Middle half of rates | 8.5% – 10.5% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 101 (23.3%) | 16,849 (10.4%) |
| Median acquisition loan | $580,000 | $693,000 |
| Lenders that made these loans | 183 | 1,648 |
| SBA 504 loans (real estate, equipment) | 74 | 16,714 |
Approvals FY2024 – FY2026 to date (1 Oct 2023 – 30 Jun 2026), cancelled loans excluded. Source: SBA 7(a) and 504 FOIA loan records, as of June 30, 2026.
- SBA 7(a) loans approved
- 434 from 183 lenders (Oct 2023 – Jun 2026)
- Median loan
- $447,500 (national $150,300)
- Median rate at approval
- 9.5% (national 10.25%)
- Loans of $1 million or more
- 102 (23.5%)
- Acquisitions
- 101 loans (23.3%), median $580,000
- SBA 504 loans
- 74, median $598,000
A format lenders know well
NAICS 812310 covers self-service laundromats and coin-operated drycleaning, including stores that add wash-dry-fold, pickup and delivery, and commercial accounts. From FY2024 through June 2026 they took 434 SBA 7(a) loans worth $318,811,400. The number to notice is the lender count: 183 lenders made those loans, while vending machine operators, with a similar number of loans, drew 72. A laundromat is a business many lenders have underwritten before.
| Figure | This industry | What it says |
|---|---|---|
| Median loan | $447,500 | About three times the national $150,300: machines and build-outs are expensive |
| Middle half of loans | $150,000 to $940,000 | A wide range, from re-tooling one store to buying one outright |
| 90th percentile | $1,656,400 | The top end can include the building or more than one store |
| Median rate | 9.5% (middle half 8.5% to 10.5%) | Below the national 10.25%, as larger loans sit under tighter rate caps |
| Fixed-rate share | 18% | Fewer than one loan in five is fixed; most float |
| Start-ups | 22.8% of loans | New stores are financed, with more scrutiny |
| SBA Express | 19.4% of loans | Most go through standard 7(a), with its larger guaranty |
Franchises were only 4.1% of loans: this is an owner-operator industry, and lenders underwrite the store, not a brand. See current SBA loan rates and SBA maximum interest rates.
Proving revenue: the water bill test
Laundromats have long been cash businesses, and a lender can only count revenue it can verify. Sellers sometimes describe earnings the tax returns do not show; lenders size the loan to the tax returns and bank deposits, not the story. See seller financials vs tax returns.
Two sources help. Card and app payment systems record every cycle by machine, which gives a lender data it can trust. And utility bills act as an independent check: water, sewer and gas usage rise with the number of loads, so a store claiming heavy volume should show matching usage. Experienced laundromat lenders compare the two, and an unexplained gap between reported sales and water use is one of the first questions they ask.
- Self-service washing and drying. The core; shown by cycle counts and utility usage.
- Wash-dry-fold and delivery. Higher revenue per load but labor-heavy; lenders want it shown separately with its own costs.
- Commercial accounts. Linen for gyms, salons or short-term rentals can steady revenue, but a few large accounts raise concentration questions.
- Vending and other income. Small; supports traffic more than earnings.
Machines and the lease
A laundromat is its equipment and its location. The equipment list, with each machine's make, capacity and age, tells a lender how soon the buyer will face a replacement bill that the cash flow must fund. Stores with aging machines often sell at prices that assume the equipment will keep going; the lender will ask what happens when it does not.
The lease matters as much. A store cannot move its plumbing, venting and machines without rebuilding, so the lease, with renewal options, should run at least as long as the loan. Lenders also want the landlord's consent to the lender's lien on the equipment and, in a purchase, to the assignment. See lease assignment in an acquisition loan and landlord waiver.
| What the loan pays for | Maximum 7(a) term | Note |
|---|---|---|
| Goodwill in a purchase | 10 years | From 1 October 2026 a change-of-ownership loan amortizes over no more than 10 years except the real estate share |
| Washers, dryers and build-out | 10 years, or 15 if useful life supports it | Machine age and condition drive the term the lender will give |
| Working capital | 10 years | Utility deposits, opening payroll, first months' costs |
| The building | 25 years | Or through SBA 504 |
The lender blends these into one maturity weighted by how the money is used. See SBA blended maturity.
Buying a laundromat
Acquisitions are central to this market: 101 loans, 23.3% of the total against a national 10.4%, at a median of $580,000 and a median rate of 9.25%. A purchase splits into machines, goodwill and sometimes the building, and each is treated differently.
SBA requires an independent business valuation when the amount financed, less appraised real estate and equipment, exceeds $250,000. In a laundromat an equipment appraisal therefore matters twice: it supports the collateral and it reduces the amount the valuation rule looks at. See SBA business valuation.
The buyer injects at least 10% of total project costs; a seller note counts toward half of that only on full standby for the life of the SBA loan; SBA prohibits an earnout; and the seller may consult for up to 12 months, or up to 24 months under SOP 50 10 8.1 from 1 October 2026. From that date every change of ownership needs financial due diligence and 1.25x coverage on historical results. A buyer should budget machine replacement into the sources and uses rather than hope to fund it from early cash flow. See financing a laundromat acquisition and sources and uses.
Owning the building, and the drycleaning question
The industry's 74 SBA 504 loans, at a median of $598,000, show how often laundromat owners buy their buildings, usually a freestanding store or a pad in a retail center. Ownership ends the lease risk that shadows every rented store. 504 typically splits a project 50% from a bank, 40% from the CDC and 10% from the borrower, and the business must occupy at least 51% of an existing building. See SBA 7(a) vs 504.
Any property with a drycleaning history gets an environmental review before a lender will take it as collateral, because solvents used in drycleaning can contaminate soil and groundwater. The same applies when a laundromat buys a building in a retail center that once housed a drycleaner. Allow for it early; a finding can change the structure. See financing a dry cleaner acquisition and acquisitions with real estate.
Preparing a laundromat's file
SBA's standard list comes first: business tax returns for 2–3 years, a P&L and balance sheet, a year-to-date P&L through last month-end, a debt schedule with copies of notes being refinanced, and personal tax returns and a personal financial statement for each owner of 20% or more. A purchase adds the store's latest full year of figures and the letter of intent; a new store adds a business plan with the site's demographics and competing stores.
For a laundromat, add the equipment list with ages, the lease with renewal options, utility bills covering the same periods as the P&L, payment-system reports by machine, and revenue split between self-service, wash-dry-fold and commercial accounts. Owners refinancing existing equipment debt should know SBA requires the new payment to be at least 10% lower. Transparent builds that file into a full lender package in a day and takes it to the lenders that fit; 278 in its book write SBA 7(a) and 504. On SBA loans the lender pays Transparent, not the borrower. Related: drycleaning and laundry services and car washes.
Put the utility bills beside the P&L. A lender will, and it is better that they agree before it looks.
Common questions
- How much can I borrow to buy a laundromat with an SBA loan?
- Up to $5 million on a 7(a) loan. In this industry the median acquisition loan was $580,000, and the amount depends on verified cash flow, the equipment and, above the valuation threshold, an independent business valuation.
- Will a lender accept my laundromat's cash revenue?
- Only what it can verify, which means tax returns and bank deposits. Card-system reports and utility usage help support the figures.
- How long does the lease need to be?
- Lenders generally want the lease, with renewal options, to run at least as long as the loan, and the landlord's consent to the equipment lien and any assignment.
- Can I use an SBA 504 loan to buy the laundromat building?
- Yes, if the business occupies at least 51% of an existing building. The industry had 74 SBA 504 loans at a median of $598,000.
- Why does a drycleaning history matter?
- Drycleaning solvents can contaminate a site, so lenders require environmental review before taking such property as collateral.