Laundromats represent one of the most stable small business investments available. They generate consistent cash flow, require minimal staffing, and serve an essential need in every community. Whether you're buying an existing laundromat, building a new facility, or expanding with additional locations, SBA loans provide accessible financing with terms that support long-term success.
Why Laundromats Are Attractive to Lenders
Laundromats have characteristics that make them excellent candidates for SBA financing:
- Recession-resistant: People need clean clothes regardless of economic conditions
- Cash business: Predictable daily revenue
- Low staffing: Many operate unattended or with minimal employees
- Strong collateral: Equipment and real estate provide security
- Proven model: Established industry with clear operating metrics
Modern laundromats have evolved beyond simple coin-op facilities. Card payment systems, mobile apps, wash-dry-fold services, and pick-up/delivery options create additional revenue streams and attract higher-value customers.
Types of Laundromat Operations
- Self-Service: Traditional coin or card-operated machines
- Wash-Dry-Fold: Drop-off service with premium pricing
- Laundromat + Dry Cleaning: Combined services
- Pickup & Delivery: Route-based laundry service
- Hybrid Models: Self-service with attended services
SBA Loan Requirements
- Down Payment: 10-15% of total project cost
- Credit Score: 650 minimum, 680+ preferred
- Experience: Helpful but not always required
- Business Plan: Operational strategy and financial projections
- Cash Flow Analysis: Demonstrated ability to service debt
Facility Requirements
Successful laundromats require specific infrastructure:
- Size: 1,500-5,000 square feet typical
- Plumbing: Large diameter water supply and drain lines
- Electrical: 200-400 amp service for equipment
- Gas: High-capacity lines for dryers and water heaters
- Ventilation: Adequate exhaust for dryers
- Water heater: Commercial-grade hot water capacity
- Parking: Convenient customer access
Equipment Investment
Equipment represents a significant portion of laundromat investment:
- Front-load washers: $3,000-15,000 each
- Top-load washers: $1,500-5,000 each
- Commercial dryers: $2,500-8,000 each
- Card payment systems: $10,000-30,000
- Water heating: $5,000-15,000
- Folding tables, carts, seating: $5,000-15,000
A typical 2,500 square foot laundromat might have $150,000-300,000 in equipment depending on size and machine mix.
Valuation and Pricing
Existing Laundromats
Laundromats typically sell for 2-4x annual net operating income (NOI) plus real estate value. Well-maintained facilities with modern equipment in good locations command premium multiples. Distressed or outdated facilities may sell below these ranges but require capital for upgrades.
New Construction
Building a new laundromat requires $200-400 per square foot for buildout plus equipment costs. Location selection is critical—demographic analysis should verify sufficient population density without nearby competition.
Ready to Invest in a Laundromat?
Get pre-qualified for SBA laundromat financing today.
Check Your EligibilityFinancing Structure Example
A typical laundromat acquisition with real estate:
- Business value: $200,000
- Real estate value: $400,000
- Equipment upgrades: $100,000
- Working capital: $50,000
- Total project: $750,000
- Down payment (10%): $75,000
- SBA loan: $675,000
Tips for Laundromat SBA Loan Success
- Verify utility costs: Request 12-24 months of utility bills from sellers
- Analyze equipment age: Factor replacement costs into your projections
- Study demographics: Proximity to apartments, especially without in-unit laundry
- Check competition: Survey nearby laundromats for pricing and quality
- Plan improvements: Budget for modernization that drives customer loyalty
Modern Laundromat Trends
The laundromat industry continues evolving. Successful operators embrace technology and customer experience improvements:
- Mobile payment and machine reservation apps
- Loyalty programs to retain customers
- Comfortable, clean environments with WiFi
- Wash-dry-fold services with online ordering
- Energy-efficient equipment reducing operating costs