Overview
Many SBA car wash deals fail for predictable reasons. The good news is that most issues can be addressed early with clean documentation and a simple, verifiable story.
Revenue that cannot be verified
If reported revenue does not align with deposits and reporting, lenders must reconcile gaps. This is one of the biggest causes of delays and reduced loan sizing.
Expenses that look understated
Underwriters often normalize utilities, maintenance, labor where applicable, and repairs. If expenses look too low, the lender will adjust them, which reduces cash flow and can reduce proceeds.
Unclear ownership and operating responsibility
Lenders want clarity on who will operate and manage the wash. Ambiguity around management, partner roles, or third-party operators can create additional conditions.
Incomplete transaction documents
- Missing purchase agreement details about assets, real estate, or allocations
- Inadequate explanation of seller financing terms if present
- Gaps in historical records such as tax returns or trailing statements
Equipment and condition surprises
Car washes are equipment-driven. If inspections reveal significant deferred maintenance that was not budgeted, lenders may require more equity or reserves.
Bottom line
Most SBA approval issues for car washes come down to verification and clarity. Clean deposits, realistic expenses, and a straightforward operating plan prevent the majority of problems.