Drycleaning and Laundry Services (except Coin-Operated)
812320
Shoreham Bank (RI)
Shoreham Bank offers Retail Banking, Mortgages, Home Equity Loans, Auto Loans, and much more. Providing our customers with convenience and reliable service since 1959.
Peoples Bank (OH)
Peoples Bank is a Small Business Administration Preferred Lender with 30 years SBA Lending Experience. Small Business Loans tailored for you.
Peoples Bank (MS)
Peoples Bank is a Small Business Administration Preferred Lender with 30 years SBA Lending Experience. Small Business Loans tailored for you.
Magnifi Financial CU (MN)
Magnifi Financial is a member owned, not-for-profit financial cooperative in Minnesota that provides low cost loans, checking, savings, online services and more.
Flagship Enterprise Center, Inc. (dba Bankable) (IN)
Bankable provides small business loans as well as access to business development tools that help Indiana small businesses to become bankable
First Mid Bank & Trust, National Association (IL)
First Mid Bank & Trust offers commercial & personal banking, insurance, & wealth management services throughout Illinois, Missouri, Texas & Wisconsin.
FinWise Bank (UT)
FinWise Bank serves families and small businesses at our full-service, top-ranked community bank in Utah. We help fintech brands disrupt banking for the better.
Falcon National Bank (MN)
We're real people creating stronger communities. See us at any of our bank offices in Foley or St. Cloud for help with your personal or business needs.
Community National Bank (VT)
Central Bank (UT)
CalPrivate Bank (CA)
CalPrivate Bank offers customized banking and financial solutions. We also provide commercial loans through various portfolio and government-guaranteed programs.
Bank of America, National Association (NC)
What would you like the power to do? At Bank of America, our purpose is to help make financial lives better through the power of every connection.
SBA Loans for Drycleaning and Laundry Services (except Coin-Operated): Financing Growth in Professional Garment Care
Introduction
Drycleaning and laundry service providers deliver essential garment care to households and businesses that require professional cleaning and textile maintenance. Classified under NAICS 812320 – Drycleaning and Laundry Services (except Coin-Operated), this sector includes full-service dry cleaners, uniform cleaning services, and commercial laundry providers. While these businesses are always in demand, operators face challenges such as equipment costs, rent, labor, and competition from low-cost alternatives.
This is where SBA Loans for Drycleaning and Laundry Businesses can provide financial relief. Backed by the U.S. Small Business Administration, SBA loans offer longer repayment terms, lower down payments, and government-backed guarantees. These loans help operators purchase machines, upgrade facilities, hire staff, and stabilize cash flow during seasonal fluctuations.
In this article, we’ll explore NAICS 812320, the financial hurdles laundry businesses face, how SBA loans provide solutions, and answers to frequently asked questions from garment care entrepreneurs.
Industry Overview: NAICS 812320
Drycleaning and Laundry Services (except Coin-Operated) include businesses such as:
- Full-service dry cleaners
- Commercial laundry for hotels, hospitals, and restaurants
- Uniform and linen cleaning services
- Pickup and delivery garment care providers
- Specialty fabric cleaning (wedding gowns, leather, drapery, etc.)
This industry is highly service-driven, requiring efficient equipment, reliable staffing, and strong customer service to remain competitive.
Common Pain Points in Laundry Business Financing
From Reddit’s r/smallbusiness, r/Entrepreneur, and Quora discussions, drycleaning and laundry business owners often mention these challenges:
- High Equipment Costs – Industrial washers, dryers, presses, and chemical systems require significant investment.
- Rising Rent & Utilities – Facility overhead and utility expenses are consistently high.
- Labor Costs – Hiring and retaining reliable staff adds to payroll expenses.
- Competition – Competing with chain cleaners, on-demand apps, and self-service laundromats requires branding and marketing.
- Cash Flow Management – Payment delays from commercial clients create liquidity gaps.
How SBA Loans Help Drycleaning and Laundry Services
SBA financing provides affordable, flexible capital that enables laundry businesses to purchase equipment, expand operations, and stay competitive.
SBA 7(a) Loan
- Best for: Working capital, payroll, marketing, or refinancing debt.
- Loan size: Up to $5 million.
- Why it helps: Provides liquidity for everyday operations, payroll, and customer acquisition campaigns.
SBA 504 Loan
- Best for: Real estate and large-scale equipment purchases.
- Loan size: Up to $5.5 million.
- Why it helps: Ideal for buying or renovating facilities and purchasing industrial laundry equipment.
SBA Microloans
- Best for: Small or startup laundry shops.
- Loan size: Up to $50,000.
- Why it helps: Useful for smaller equipment purchases, uniforms, or marketing efforts.
SBA Disaster Loans
- Best for: Businesses affected by natural disasters or unexpected closures.
- Loan size: Up to $2 million.
- Why it helps: Provides recovery funding for damaged property, equipment, or lost revenue.
Step-by-Step Guide to Getting an SBA Loan
- Check Eligibility – Must be a U.S.-based, for-profit laundry or drycleaning business with good personal credit (typically 650+).
- Prepare Financial Documents – Include tax returns, P&L statements, commercial contracts, and payroll records.
- Find an SBA-Approved Lender – Some lenders specialize in service businesses like laundry and dry cleaning.
- Submit Application – Provide a business plan with customer demographics, service offerings, and revenue projections.
- Underwriting & Approval – SBA guarantees reduce lender risk. Approval typically takes 30–90 days.
FAQ: SBA Loans for Drycleaning and Laundry Service Providers
Why do banks often deny loans to laundry businesses?
Banks may consider these businesses risky due to thin profit margins, high equipment costs, and seasonal demand. SBA guarantees reduce this risk and improve approval chances.
Can SBA loans finance industrial washers and drycleaning machines?
Yes. SBA 7(a) and 504 loans can fund commercial washers, dryers, presses, and eco-friendly cleaning systems.
What down payment is required?
SBA loans typically require 10–20% down, compared to 25–30% with conventional financing.
Are startup drycleaners eligible?
Yes. Entrepreneurs with experience in garment care and a solid business plan may qualify for SBA financing.
What repayment terms are available?
- Working capital: Up to 7 years
- Equipment/facilities: Up to 10 years
- Real estate: Up to 25 years
Can SBA loans support eco-friendly initiatives?
Absolutely. Many drycleaners use SBA loans to invest in green cleaning technologies, energy-efficient machines, and sustainable practices.
Final Thoughts
The Drycleaning and Laundry Services (except Coin-Operated) industry provides essential household and commercial services but faces financial hurdles tied to equipment, labor, and competition. SBA Loans for Laundry Businesses offer affordable, flexible financing to stabilize cash flow, expand facilities, and invest in new technologies.
Whether you run a small drycleaning shop, manage a commercial laundry operation, or plan to expand into multiple locations, SBA financing can provide the resources you need. Connect with an SBA-approved lender today and explore your funding options in garment care services.
Filters
Tags
#Preferred Lenders Program
#SBA Express Program
#Existing or more than 2 years old
#Startup
#Loan Funds will Open Business
#Fixed Rates Startup
#Change of Ownership
#New Business or 2 years or less
#7a General
#Variable Rates
#Fixed Rates
#Standard Asset Base Working Capital Line of Credit (CAPLine)
#International Trade Loans
#Export Express
#7a with WCP
#Contract Loan Line of Credit (CAPLine)
#7a with EWCP
#Unanswered
#Preferred Lenders with WCP
#Preferred Lenders with EWCP
#Seasonal Line of Credit (CAPLine)