Pet grooming and boarding business loans
Pet Care (except Veterinary) Services · NAICS 812910 · Program that usually fits: 7(a)
Pet care loans cover a wide range. A mobile groomer might need $80,000 for a van, while a dog boarding and daycare facility on its own land can need more than $1 million. Groomers and trainers usually borrow through Express or small 7(a) loans. Boarding and daycare owners often buy property through 7(a) or 504. Lenders focus on occupancy and repeat clients, staff, zoning for animals, and whether the owner has hands-on experience running a pet business.
Who qualifies
Dog groomers, mobile grooming vans, boarding kennels, doggy daycare, pet sitters and dog trainers. Lenders want industry experience, and many states and cities require a kennel or boarding license, so those must be in place or obtainable. Zoning for noise and animals is a common obstacle for boarding facilities. Franchises in pet grooming and daycare are eligible when the brand meets SBA franchise rules. Veterinary clinics fall under a different category.
Which SBA program fits
7(a) for facilities and buyouts
Funds a daycare or boarding build-out, buying an existing kennel or grooming salon, and working capital, on terms up to 10 years, or 25 with real estate. Franchise fees fit here too.
504 for buying a kennel property
A 504 loan finances land and buildings at a long fixed rate. Kennels are often special-purpose, so expect 15% to 20% down and a careful appraisal.
Microloans and Express for groomers
Microloans up to $50,000 and Express loans fit grooming tables, tubs, dryers or a mobile grooming van. They also fund a salon build-out or a groomer's move from renting a chair to owning a shop.
What borrowers use the money for
- Mobile grooming vans and salon equipment
- Boarding kennel runs, daycare play yards and fencing
- Buying an existing grooming salon or boarding business
- Purchasing land and a building for a pet resort
- Working capital for staffing and marketing at opening
Typical loan amounts, down payment and terms
Grooming salons and mobile vans typically borrow $50,000 to $200,000. Boarding and daycare facilities that lease space often borrow $250,000 to $750,000, and those buying property can exceed $1 million. Equipment and buyouts run up to 10 years, and real estate up to 25. Expect 10% equity, rising to 15% to 20% for start-ups or special-purpose kennels.
What lenders look at for a pet grooming or boarding business
For boarding and daycare, lenders study occupancy by season, average nightly rate and how much revenue comes from repeat clients and memberships. Zoning, noise rules and kennel licensing can make or break a site, and a kennel building may be hard to sell for another use. For groomers, they look at appointment volume, rebooking rates and whether the owner is the main groomer. Staffing is a common concern across pet care, as is liability insurance for animal injuries.
Example: a $250,000 loan
At today's maximum variable 7(a) rate of 13.00% over 10 years, the payment would be about $3,733 a month. Most well-qualified borrowers get a lower rate. Try your own numbers.
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Answer four questions and see SBA lenders that fit your state, loan size and industry, with your maximum rate. Compare at least two quotes before you sign. Rates move monthly: check current SBA loan rates and the 504 rate.
Today's rate caps
These are the SBA's maximum 7(a) rates with prime at 7.00%. See current SBA loan rates and SBA 504 rates for the full picture.
| Loan amount | Maximum spread | Maximum variable rate today |
|---|---|---|
| $50,000 or less | Prime + 6.5 | 13.50% |
| $50,001 to $250,000 | Prime + 6.0 | 13.00% |
| $250,001 to $350,000 | Prime + 4.5 | 11.50% |
| Over $350,000 | Prime + 3.0 | 10.00% |
Related industries and lenders
SBA lenders active nationwide
Questions about pet groomers & boarding loans
Can I get an SBA loan to start a dog grooming business?
Yes. Grooming start-ups often use a microloan of up to $50,000 or a small 7(a) or Express loan. Lenders want grooming experience, a lease or a van quote, an equipment list and a plan for building a client base. Expect to put in 10% to 20%.
How much does it cost to open a dog boarding or daycare facility?
A leased daycare and boarding facility can cost $250,000 to $750,000 for build-out, runs, flooring, drainage, HVAC and opening costs. Buying land and building a pet resort can cost well over $1 million. Zoning and permit work adds time and expense.
Can I finance a mobile grooming van with an SBA loan?
Yes. A mobile grooming van with tub, table and generator is an eligible 7(a), Express or microloan use. Lenders usually finance it over 5 to 10 years depending on whether it is new or used, and want a quote and full insurance.
Is a dog kennel considered special-purpose property?
Often yes. Lenders and the SBA may treat a kennel building with runs and drainage as special-purpose, because it is hard to convert to another use. That can raise the required equity to 15% to 20% and lead to a more conservative appraisal.
What are SBA rates for a pet care business loan?
With prime at 7.00%, 7(a) caps are 13.50% for $50,000 or less, 13.00% for $50,001 to $250,000, 11.50% for $250,001 to $350,000, and 10.00% above $350,000. A 504 loan for property has a fixed debenture rate near 6.57%.
Sources: SBA 7(a) terms, conditions and maximum variable rates; Federal Reserve H.15 selected interest rates (bank prime loan rate); November 2026 SBA 504 debenture pricing, as published by CDCs; SBA FOIA 7(a) and 504 loan-level data.