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What is the SBA default rate on car wash loans?

In the SBA's loan-level FOIA record for car washes (NAICS 811192), 13.7% of resolved pre-2010 loans were charged off, versus roughly 4.4% for the 2010-and-later era — though many modern loans are still outstanding, so that figure will season upward. Across all resolved loans since 1991, the charge-off rate is about 10.5%.

Written by Justin Kuo (Founder, Sparkle Technologies)

Direct answer

In the SBA's loan-level FOIA record for car washes (NAICS 811192), 13.7% of resolved pre-2010 loans were charged off, versus roughly 4.4% for the 2010-and-later era — though many modern loans are still outstanding, so that figure will season upward. Across all resolved loans since 1991, the charge-off rate is about 10.5%.

What the record shows

The SBA has backed roughly 12,900 car-wash loans worth over $10B since 1991 across the 7(a) and 504 programs. The eras differ sharply: the pre-2010 book (median loan ~$332K) charged off at 13.7% of resolved loans, while the modern era (median ~$775K) sits near 4.4% — bigger loans, more real-estate-heavy 504 participation, and the express-tunnel membership model all changed the credit profile.

Read the modern number carefully

Charge-off rates are computed on resolved loans, and a large share of the modern book is still outstanding. Young cohorts always look good; the honest statement is that modern car-wash credit has performed dramatically better so far. Purpose matters too: most modern lending funded expansion and new construction rather than acquisitions.

The full dataset

Loan counts, medians, charge-offs by metro, program, year, and franchise are charted in the Car Wash Lending Tracker, built from the SBA 7(a) and 504 FOIA datasets. What lenders should do with it — DSCR sizing, collateral, credit-committee questions — is the car wash loan underwriting guide.

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Data as of 2026-05-24. Pick a format and click Copy.

APA
WashIndex. (2026, May 24). What is the SBA default rate on car wash loans?. https://washindex.com/q/what-is-the-sba-default-rate-on-car-wash-loans
Chicago
WashIndex. "What is the SBA default rate on car wash loans?." WashIndex. Last modified May 24, 2026. https://washindex.com/q/what-is-the-sba-default-rate-on-car-wash-loans.
MLA
"What is the SBA default rate on car wash loans?." WashIndex, May. 24, 2026, https://washindex.com/q/what-is-the-sba-default-rate-on-car-wash-loans.
BibTeX
@misc{washindex_q_what_is_the_sba_default_rate_on_car_wash_loans_2026,
  title  = {{What is the SBA default rate on car wash loans?}},
  author = {{WashIndex}},
  year   = {2026},
  month  = {May},
  url    = {https://washindex.com/q/what-is-the-sba-default-rate-on-car-wash-loans},
  urldate = {2026-05-24},
}

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