MICHIGAN · NAICS 812310
Michigan laundromat projects pencil across the dense urban cores of Detroit and Grand Rapids and the mid-state corridor towns. Studies translate utilization, equipment mix, vend pricing, and route economics into projections, and reconcile build-out and utility costs against coverage where the cash-flow profile is the underwriting anchor.
FEASIBILITY TRIGGER
Laundromats are cash-flow-underwritten deals where lenders require utilization analysis when history is thin.
Between FY2010 and FY2026, SBA lenders approved and disbursed 46 7(a) and 504 loans for laundromat projects in Michigan, totaling $9.7 million in approved financing at an average of $210,000 per loan. Michigan ranks #15 of 38 states tracked for laundromat SBA lending volume and accounts for 0.6% of national laundromat SBA dollar volume. 91.3% of these loans were made under the 7(a) program, the remainder under 504. 10 loans have been approved since FY2024.
| Disbursed loans (FY2010–FY2026) | 46 |
| Approved volume | $9.7 million |
| Average loan size | $210,000 |
| 7(a) share | 91.3% |
| Approvals since FY2024 | 10 |
| State rank by loan count | #15 of 38 |
The state-level seasoned cohort in this segment is below our publication threshold of 30 loans, so no state rate is shown. Nationally, seasoned laundromat loans (approvals FY2010–FY2021) show an adverse-resolution rate of 4.0%, against 7.3% across all industries.
Source: SBA 7(a) and 504 FOIA loan-level data, as of March 31, 2026. Disbursed loans only. See data methodology.
An adverse-resolution rate of 4.0%, close to the national laundromat benchmark of 4.0%, puts Michigan deals in this class on ordinary SBA credit footing. Across 46 loans averaging $210,000, the underwriting question is deal-specific: a rigorous third-party feasibility study is where documented demand and stressed coverage decide the credit outcome.
Every Michigan laundromats 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.
Dense urban cores and mid-state corridor towns carry the utilization profile that supports laundromat underwriting.
For a national view of this asset class, see our laundromat SBA feasibility overview, and read our related analysis in the laundromat lending research on our blog.
Compare neighboring markets: Massachusetts, Minnesota, Texas.
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