Laundromat loans are financing to buy an existing laundromat, open a new one, replace machines or renovate a store. The usual tools are SBA 7(a) loans for purchases where much of the price is goodwill, equipment financing for washers, dryers and payment systems, commercial real estate or SBA 504 loans when the building is part of the deal, and a line of credit for repairs. Lenders size the loan to what the store earns, so verifiable revenue and a long lease matter as much as your credit.
This page sits under our cleaning business loans hub. If you only need machines, see our laundromat equipment financing guide. Below: what laundromats are worth, the financing options, what lenders ask for and the pitfalls to weigh.
What laundromats are worth and earn
The Coin Laundry Association’s industry overview for investors gives the ranges most buyers start from:
- Market value. “Coin laundries can range in market value from $50,000 to more than $1 million, and can generate cash flow between $15,000 and $300,000 per year.”
- Price. “Coin laundries normally sell for a multiple of their net earnings,” which the CLA says “may vary between three and five times the net cash flow.”
- Industry size. The CLA says there are “about 29,500 coin laundries in the United States, generating nearly $5 billion” in annual gross revenue. The page does not date these figures.
The CLA also estimates equipment life: 5 to 8 years for small top-load washers, and 10 to 15 years for front-load washers, dryers, heating systems and coin changers. Machine age affects the price, the loan and how soon you will need to replace equipment.
Figures on this page were checked on September 21, 2026.
Laundromat financing options
| Option | Typical use | Published limits and terms | Trade-off |
|---|---|---|---|
| SBA 7(a) | Buying an existing laundromat, build-outs, equipment, working capital | Up to $5 million; up to 10 years for equipment and working capital, 25 years for real estate | Paperwork and a longer timeline; ask about personal guarantee requirements |
| SBA 7(a) Small / SBA Express | Smaller purchases, renovations, machine upgrades | Up to $350,000 (7(a) Small) and $500,000 (Express) | Lender credit standards still apply |
| SBA 504 | Buying or building the real estate; long-life equipment | Up to $5.5 million; 10-, 20- and 25-year terms | Cannot be used for working capital or inventory |
| Equipment loan or lease | Washers, dryers, card or payment systems | Set by each lender or program | Only covers equipment; equipment secures it |
| Business line of credit | Repairs and seasonal cash gaps | Set by each lender | Can cost more than term debt |
| Seller financing | Part of the purchase price | Negotiated with the seller | Must fit the lender’s rules if combined with SBA |
Sources: SBA 7(a), 7(a) loan types, 7(a) terms and 504 pages.
SBA 7(a) loans for buying a laundromat
Security Bank & Trust, a community bank, describes SBA 7(a) on its laundromat investing guide as “The most common route for buying an existing store, because much of the purchase price is goodwill and business value rather than hard collateral.” The SBA lists “Changes of ownership (complete or partial)” among 7(a) uses, alongside equipment, working capital and real estate.
7(a) interest rates are negotiated with the lender, subject to SBA maximums. Rules on the buyer’s cash injection and seller notes for business purchases are set in the SBA’s lending procedures. The SBA has issued a new version, SOP 50 10 8.1, effective October 1, 2026, so ask your lender which version applies to your closing date. Our guide to financing a business acquisition covers down payment strategies in general, and SBA loans explains the process.
SBA 504 when the building is included
If you are buying the building with the business, or building a new store, the SBA’s 504 program can fund land and buildings up to $5.5 million with “10-, 20- and 25-year maturity terms.” It can also fund “Long-term machinery and equipment with a useful remaining life of a minimum of 10 years,” but not working capital or inventory. Compare that 10-year test with the CLA’s useful-life estimates before assuming machines will qualify.
Equipment financing
Security Bank lists equipment financing “For the washers, dryers, and payment systems, whether you are replacing a bank of machines or outfitting a new build.” Equipment loans and leases are available from banks and independent equipment lenders, and your equipment distributor may offer or arrange financing too. Ask each for the APR (the yearly cost of borrowing including fees), term, down payment and whether the program requires a particular machine brand.
Tax rules may help. For tax years beginning in 2026, the Section 179 limit is $2,560,000, phasing out above $4,090,000 of qualifying purchases (IRS Rev. Proc. 2025-32), and the IRS says qualified property acquired after January 19, 2025 is eligible for a “permanent 100-percent additional first year depreciation deduction” (IRS guidance). Check with your tax adviser. Our laundromat equipment financing page goes into machine financing in more detail.
Smaller needs: SBA microloans and lines of credit
For modest projects, such as adding card readers or a wash-dry-fold counter, the SBA’s microloan program offers loans up to $50,000 for working capital, equipment and furniture, with a maximum term of seven years and rates “Generally, between 8%-13%.” Microloans cannot be used to buy real estate.
Security Bank suggests a line of credit “For the repair you did not plan for, which in this business arrives on a Saturday.” See our business line of credit guide.
What lenders look at
Security Bank says “A lender will size the loan against what the store earns, not against what the seller is asking, and those two numbers are not always close.” Expect to provide:
- Financial records. The bank advises buyers to “Bring three years of tax returns and profit-and-loss statements plus the current year to date, and bring the actual utility bills.”
- The lease. “A short remaining lease term with no renewal options is a serious problem,” according to Security Bank, because machines, plumbing and venting are costly to move. Ask each lender what remaining lease term it requires.
- Utility costs. The bank calls water heating “the single largest operating cost in most stores.”
- Equipment age and condition. Compare the machines’ age with the CLA’s useful-life ranges.
- Your credit and experience. Personal credit, liquidity and any management experience.
- Seller’s revenue records. Be ready to tie reported revenue to bank deposits, card reports or utility use; revenue the seller cannot document is harder to rely on.
Pitfalls to weigh
- Paying for revenue you cannot verify. A multiple of unverifiable cash flow can leave you with a loan the store cannot support.
- Old machines. A lower price may come with a large replacement bill soon after closing.
- Short leases. Negotiate renewal options before closing, not after.
- Underestimating utilities. Get actual bills, not the seller’s summary.
- Skipping working capital. Leave cash for repairs, marketing and slower months after the purchase.
FAQ
Can I get an SBA loan to buy a laundromat?
Yes, if you and the business meet SBA and lender requirements. The SBA lists changes of ownership as an eligible 7(a) use, and Security Bank calls 7(a) the most common route for buying an existing store.
How much does a laundromat cost?
The CLA puts market values from $50,000 to more than $1 million, usually priced at three to five times net cash flow. The price for a given store depends on its earnings, equipment, lease and location.
Can I finance just the machines?
Yes. Equipment loans and leases cover washers, dryers and payment systems. See laundromat equipment financing.
How long can a laundromat loan run?
SBA 7(a) allows up to 10 years for equipment and working capital and 25 years for real estate. SBA 504 offers 10-, 20- and 25-year terms. Equipment lenders set their own terms.
Next step
Before you talk to lenders, collect the seller’s tax returns, profit-and-loss statements, utility bills and the lease, and estimate what the machines will need in the next five years. Our cleaning business loans hub explains how we compare SBA, equipment and working capital options from the lenders we work with.
Sources
- Coin Laundry Association: Industry overview for investors
- Security Bank & Trust: How to invest in a profitable laundromat
- U.S. Small Business Administration: 7(a) loans
- U.S. Small Business Administration: Types of 7(a) loans
- U.S. Small Business Administration: 7(a) terms, conditions and eligibility
- U.S. Small Business Administration: 504 loans
- U.S. Small Business Administration: Microloans
- U.S. Small Business Administration: Issuance of SOP 50 10 8.1
- IRS: Rev. Proc. 2025-32
- IRS: Guidance on the additional first-year depreciation deduction
About this page. Written by Ezra Cabrera, Content Team Lead at SMB Compass. Figures were checked against the primary sources listed above on September 21, 2026; lenders change their terms, so confirm current terms before you apply, and let us know if you spot a figure that has changed. SMB Compass is a business financing broker: we don’t lend our own money, and we are paid by the lenders we place loans with. This page is general information, not financial, legal or tax advice.