MINNESOTA · NAICS 812310
Minnesota laundromat deals are cash-flow-underwritten, with lenders requiring utilization analysis where operating history is thin. Studies model turns per machine, demographics, and competitor density inside a one mile trade area against the Twin Cities renter base and outstate working-population corridors.
FEASIBILITY TRIGGER
Cash-flow-underwritten deals where lenders require utilization analysis when history is thin.
From FY2010 through FY2026, Minnesota recorded 94 SBA-disbursed laundromat loans across the 7(a) and 504 programs, representing $38.4 million in approved financing at an average loan size of $408,000. The state sits at rank #7 of 38 for laundromat SBA lending volume and holds 2.3% of the national laundromat dollar pool. 7(a) accounts for 84.0% of the count, 504 for the rest, with 8 fresh approvals dated FY2024 or later.
| Disbursed loans (FY2010–FY2026) | 94 |
| Approved volume | $38.4 million |
| Average loan size | $408,000 |
| 7(a) share | 84.0% |
| Approvals since FY2024 | 8 |
| State rank by loan count | #7 of 38 |
Among the 74 seasoned loans in this segment (approvals FY2010–FY2021), 5.4% reached adverse resolution — purchased, liquidated, or charged off. The national benchmark for laundromat is 4.0%, 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 5.4% adverse-resolution rate against the national laundromat benchmark of 4.0% tells credit committees to scrutinize revenue projections and coverage assumptions closely on Minnesota 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 $408,000 across 94 loans.
Every Minnesota 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.
Minnesota projects 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 calendar 2025 average rate ran 0.63 points below the national figure. 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 Twin Cities renter base and outstate working-population corridors carry the demand pattern that lender utilization analysis is built around.
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.
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