MICHIGAN · NAICS 811192
Michigan car wash projects pencil on express tunnel formats with membership models running through suburban corridors of Grand Rapids, Detroit, Lansing, and Ann Arbor. 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.
SBA 7(a) and 504 lenders funded 196 car wash projects across Michigan between FY2010 and FY2026, moving $135.8 million in approved capital at an average ticket of $693,000. That volume places Michigan at #6 of 38 states measured for car wash SBA activity, or 2.4% of national car wash dollars. The 7(a) program carried 82.7% of the loan count, with 504 taking the balance, and 24 approvals have hit the pipeline since FY2024.
| Disbursed loans (FY2010–FY2026) | 196 |
| Approved volume | $135.8 million |
| Average loan size | $693,000 |
| 7(a) share | 82.7% |
| Approvals since FY2024 | 24 |
| State rank by loan count | #6 of 38 |
Among the 141 seasoned loans in this segment (approvals FY2010–FY2021), 3.5% 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 below the national benchmark for this asset class, a credit-positive signal for lenders.
Source: SBA 7(a) and 504 FOIA loan-level data, as of March 31, 2026. Disbursed loans only. See data methodology.
A 3.5% adverse-resolution rate below the national car wash benchmark of 5.4% supports the credit story for well-underwritten Michigan projects in this class. Across 196 SBA loans averaging $693,000, that track record does not eliminate the need for a third-party feasibility study, but it means a rigorous study reinforces rather than defends the projections.
Every Michigan 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.
Michigan 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, and the state's Collateral Support Program can layer up to 40 percent collateral coverage onto qualifying deals. 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.
The Midwest winter cycle of salt, snow, and grime sustains year-round express demand monetized through membership models.
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: Massachusetts, Minnesota, Texas.
Public SBA and CDC program records, cited as program evidence
Four SBA 504 loans through SomerCor including land purchase and construction of a 4,774 square foot automatic car wash
18-location Chicago operator, national program evidence
Chicago, Cook County, Illinois
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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