Take advantage of the stimulus SBA 504 Re-Fi of your conventional loan and cash out 20 percent of the appraised value of your car wash, and you will also receive six free monthly payments. Your SBA debenture loan will enjoy a fixed rate for 25-years at the lowest interest rates in the history of SBA lending. The loan must close by September 27, 2020.

Cash-out 20 percent of appraised value of your car wash with an SBA 504 Re-Fi of your conventional loan.The SBA Paycheck Protection Program (PPP) was a great help for immediate needs to pay employees as car washes were closed throughout the country because of COVID-19. As our nation begins to “open up,” we now have new stimulus loan programs available to address immediate financing needs for car wash borrowers.

SBA 7a stimulus loans are also available that will pay the first six monthly payments if the loan closes by September 27, 2020. Borrowers that have been considering applying for an SBA loan to expand or renovate are electing to take advantage of the new SBA stimulus programs.

If you already have an SBA car wash loan, you automatically qualify for the six months free payments. You should reach out to your lender if they have not contacted you about the six months free payments you are entitled to receive. The six months payment relief allows borrowers time to make up for lost income they experienced during the pandemic.

The SBA stimulus loans are available now to purchase an existing wash, renovate and replace equipment, or expand your car wash business. All new SBA loans must close by September 27, 2020 to qualify for the first six monthly free payments, so there is some urgency if you want to take advantage of this stimulus program.

SBA has the onerous task of administering the stimulus program. Also, being required to work from home has hampered everyone’s effort to take care of the immediate needs of the Paycheck Protection Program. If you plan to take advantage of the stimulus program, you should start your loan request as soon as possible due to the heavy SBA workload so you can secure and close your loan by the September deadline.

Most car washes were initially required to close at the beginning of the COVID-19 pandemic. Within a short period, most states began to allow express washes to open because it was easy to maintain social distancing. Allowing express washes to open was an unexpected boost for the car wash express format’s growth and popularity.

Over the past decade, the express car wash has enjoyed rapid growth and now dominates the conveyor car washes being built. The express made up 75 percent of the washes constructed in 2009 and that has grown to 94 percent in 2018. Today’s customers are demanding a quick, quality, affordable, car wash, and they do not want to get out of their car, which is precisely what an express wash provides.

SBA lenders, in the past, had to be knowledgeable about all SBA loans to serve the borrower properly. In today’s world, the lender must understand how to combine SBA loans with the stimulus programs to help the borrowers select the best financing for their short- and long-term needs. Car wash operators with multiple loans see the current lending environment as an excellent time to restructure all their investments.

Hershel Pierce was a co-founder of Pavillion Bank in 1982 and is the founder of SBA-Capital, a car wash financing expert. You can contact Hershel at (214) 726-9000 or pierce.pavbank@gmail.com. More car wash financing information and case studies are available at https://sba-capital.com/blog.