Car Wash Expansion Loan Approval

Case Summary

The client could not obtain a $2.3M expansion loan approval for the proposed new carwash location.

Client Profile

The Company: The client is a limited liability corporation (LLC), incorporated under the laws of Louisiana on 2008–essentially an experienced, but small tunnel car wash start-up.

Ownership: The owners and are majority stockholders with a 100% ownership. Operational headquarters are in Lafayette, Louisiana.

Loan Approval Factors

  • Management Experience: The company is a start-up tunnel car wash which will be located in Lafayette, LA. Historical performance demonstrates the owners’  ability to run these businesses successfully.
  • Capitalization: The Company anticipates the need for financing as follows:
  • Use of Funds: Real Estate, equipment        $2,300,000
  • Source of Funds: Loan                                  $2,300,000
  • Loan Request: A start-up tunnel car wash located in Lafayette, LA. Total dollar requested $2,300,000, with a twenty (25) year amortization.
  • Collateral: First mortgage on land and improvements valued at $2,300,000 on land with no mortgage debt.

The Problem

$2.3 million car wash. Brand new construction on a car wash in a rural area.

Our Solution

Veillon located a USDA bank that could approve the expansion loan. In addition, we were able to prove the traffic count though DOTD.

The End Result

The client could not obtain a $2.3M expansion loan approval for the proposed new carwash location.

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