ARIZONA · NAICS 811192
Arizona car wash projects pencil on express tunnel formats with membership models that the desert dust and year-round driving climate make one of the strongest car wash markets in the country. Studies translate traffic counts, trade-area saturation, membership penetration, and throughput into projections that lenders can stress-test against ramp and refinance.
FEASIBILITY TRIGGER
Car washes are special-purpose under SOP 50 10 8, so a third-party feasibility study is normally required with an industry-experienced going-concern appraiser and elevated equity applies.
Arizona generated 119 SBA-disbursed car wash loans between FY2010 and FY2026, worth $125.6 million in approved 7(a) and 504 financing at an average of $1.1 million per deal. Ranked #12 of 38 states for car wash SBA volume, the state captures 2.2% of national car wash dollars. 70.6% of the loans ran through 7(a) with 504 covering the remainder; 21 approvals have posted since FY2024.
| Disbursed loans (FY2010–FY2026) | 119 |
| Approved volume | $125.6 million |
| Average loan size | $1.1 million |
| 7(a) share | 70.6% |
| Approvals since FY2024 | 21 |
| State rank by loan count | #12 of 38 |
Among the 77 seasoned loans in this segment (approvals FY2010–FY2021), 9.1% reached adverse resolution — purchased, liquidated, or charged off. The national benchmark for car wash is 5.4%, against 7.3% across all industries. That performance runs above the national benchmark for this asset class, which is a factor lenders weigh in their credit decision.
Source: SBA 7(a) and 504 FOIA loan-level data, as of March 31, 2026. Disbursed loans only. See data methodology.
A 9.1% adverse-resolution rate against the national car wash benchmark of 5.4% tells credit committees to scrutinize revenue projections and coverage assumptions closely on Arizona deals in this class. A rigorous third-party feasibility study — built on documented demand, defensible pricing, and stressed coverage — carries meaningful weight in that underwriting conversation, particularly at an average loan size of $1.1 million across 119 loans.
Every Arizona car washes project we underwrite follows the same lender ready process: independent market analysis, site and technical review, and financial projections tested against SBA SOP 50 10 8 standards. Our SBA feasibility study consultants guide explains scope, timing, deliverables, and what lenders and CDCs expect in the report.
Arizona projects most often pencil under SBA 504 because the 50/40/10 structure delivers up to 90 percent financing on owner-occupied real estate at a fixed debenture rate, which is decisive in a state where Sun Belt growth has pushed land and improvement costs higher each cycle. SBA 7(a) covers acquisitions, working capital, and equipment, and from July 4, 2026 eligible borrowers can combine 7(a) and 504 for up to $10 million in total program credit.
Desert dust and year-round driving make Arizona one of the strongest express wash markets in the country, and the named 504 record below shows the program financing the class at both single-site and multi-site scale.
For a national view of this asset class, see our car wash SBA feasibility overview, and read our related analysis in the car wash lending research on our blog.
Compare neighboring markets: California, Texas.
Public SBA and CDC program records, cited as program evidence
Approximately $3.4M across multiple SBA 504 loans through TMC Financing with 15 percent down
Three self-serve facilities, national program evidence
Arizona
$735,000 total project SBA 504 through TMC Financing with roughly 80 percent financing plus $45,000 in equipment funding
Car wash project, national program evidence
Arizona
Fifteen-minute scoping call, written proposal inside one business day, firm fixed fee before you sign.
Book a MeetingOur SBA feasibility study consultants prepare express tunnel, in-bay automatic and self-serve car wash studies for lenders, CDCs and sponsors. See pricing, methodology or request a fixed fee quote.
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