# SBA Financing Package & Action Plan — Laundromat Acquisition

**Prepared for:** Aaron Lieber, owner of Lieber Films (W-2 wages + self-employed/Schedule C income), San Clemente CA 92672
**Date:** May 29, 2026
**Use case:** First laundromat acquisition, Orange County / North San Diego County
**Governing rulebook:** SBA **SOP 50 10 8**, effective June 1, 2025 (current; there is no SOP 50 10 9)

> This is the practical, how-to-get-the-loan document. It tells you the terms, who to call, what paperwork to assemble, how to model the deal three ways, how to finance new machines, what to do over the next 30 days, and exactly what to say on the first lender call.

---

## How to use this document

Work it top to bottom. Sections 1–2 are reference (terms + lenders). Section 3 is your homework pile. Section 4 is the math you'll walk into the lender conversation with. Section 5 covers re-equipping. Section 6 is your calendar. Section 7 is the phone script. The single most important behavioral rule: **your W-2 + Lieber Films income is your strongest asset in this process** — present it deliberately (Section 3D), don't bury it.

---

## 1. SBA 7(a) Terms Cheat-Sheet (verified numbers)

The 7(a) is the standard vehicle for a laundromat acquisition because coin laundries throw off steady, recession-resistant cash flow that underwrites well. For a business-only buy (you lease the storefront, which is the norm — e.g., Laundry Basket South), the headline terms:

| Item | The number | Notes |
|---|---|---|
| **Max single 7(a) loan** | **$5,000,000** | Not a constraint — your deals are an order of magnitude below. |
| **Down payment / equity injection** | **10% minimum** of total project cost | Measured on the *whole* project (price + closing + financed guaranty fee + working capital), not just price. Laundromat lenders often ask **10–20%** for a first-time owner with no industry experience. |
| **— of which buyer's own cash** | **At least half (5% of project)** | The other 5% can be a seller note **on full standby** (no payments for the SBA loan's life). See §4. |
| **Term (business only, no real estate)** | **10 years**, fully amortized | **No prepayment penalty** (SBA penalties only attach at 15-yr+ maturities). |
| **Term (if real estate ≥51% of proceeds)** | **25 years** | Materially lowers payment; only if you buy the building. |
| **Rate formula** | **Base rate + lender spread = note rate** | Most 7(a) loans are variable, adjusting monthly/quarterly. |
| **Base rate (WSJ Prime)** | **6.75%** | Current as of late May 2026 (year-ago was 7.50%; that stale figure is floating around in old snippets — ignore it). |
| **Typical lender spread** | **+2.25% to +2.75%** | Capped by SBA. Laundromat 7(a) all-in is running **~9.0–9.5%** today. **Model at 9.25%.** |
| **DSCR (debt service coverage) minimum** | **1.15–1.25x**, most want **≥1.25x** | This is the gate. Computed on **global cash flow** = business cash flow **+ your outside W-2/Lieber Films income**. Your outside income is what makes this comfortable (§4). |
| **Upfront SBA guaranty fee** | **~3.0% of the guaranteed portion** for loans $150K–$700K | On a $382K loan that's **≈$8,600**; on a $585K loan **≈$13,200**. Usually financed into the loan. (Guaranteed portion = 75% of loan above $150K.) |
| **Ongoing servicing fee** | ~0.55% of guaranteed outstanding balance/yr | Baked into pricing; you don't pay it separately. |
| **SBA Form fees** | Packaging/closing costs vary by lender | Ask each lender to quote total closing costs up front. |

### Base-rate footnote (current as of March 1, 2026)
Most lenders will quote you off **WSJ Prime (6.75%)**. But the SBA **expanded the allowed base-rate menu from 2 to 5 options effective March 1, 2026**: Prime, the SBA Optional Peg Rate, **30-Day** *daily* SOFR (the SOFR value on the first business day of the month), the 5-year Treasury, and the 10-year Treasury. (The Optional Peg Rate was 4.50% for Q1 FY2026 / Jan–Mar; the current Apr–Jun quarter figure may differ — Prime is what actually matters here.) One catch worth knowing: **alternative base rates cannot be used on loans sold into the secondary market**, which is where many lenders offload 7(a) paper — so most will still default to Prime. Don't let a lender quoting a non-Prime base confuse you; ask for the all-in note rate and compare apples to apples.

### The 2026 cap change (does NOT affect you, but you'll hear about it)
Effective **July 4, 2026**, the SBA doubles the *cumulative* SBA-backed limit to **$10M per borrower** and decouples 7(a) from 504 (so you could stack up to $5M of 7(a) **plus** up to $5M of 504). The **single 7(a) loan ceiling stays $5M.** For a sub-$1M laundromat buy this is irrelevant. It only matters if you ever buy the building too (then a 7(a) + 504 combo becomes possible).

---

## 2. Ranked, Contactable List of CA SBA Lenders for Laundromat Deals

Ranked for **your** profile: first-time owner, no laundry experience, strong outside income, deal size $425K–$650K, OC / North County SD, business-only (leased space). I weighted (a) laundromat-acquisition track record, (b) fit for a sub-$1M deal, (c) competitive pricing, (d) SBA Preferred Lender (PLP) status for speed.

> **CALL FIRST: Live Oak Bank.** Reasoning at the bottom of this section.

### Tier 1 — Start here

**1. Live Oak Bank** — *call first*
- **What:** #1 SBA 7(a) lender in America by dollar volume; the single most active **laundromat acquisition** lender on record (~2,523 approved laundromat loans, avg ~$1.5M). SBA Preferred Lender, online application, typical 30–60 day close.
- **Why for you:** Deepest laundromat-acquisition muscle memory of any lender on this list; they've underwritten this exact asset class thousands of times, so your file won't be educating the banker. They underwrite strictly (want ~700+ credit, lean on global cash flow) — your strong W-2/Lieber Films income is exactly what offsets your lack of laundry experience.
- **Watch-for:** They skew to larger deals (avg ~$1.5M); a $425K business-only buy is on the small side for them, so they may push for 15% down or steer you toward a more standardized product. Use the call to confirm appetite for a sub-$500K business-only deal.
- **Phone:** SBA loans **1-866-438-9393** | HQ 866-518-0286
- **URL:** https://www.liveoak.bank/business-loans/sba-loans/ | loan-specialist form: https://www.liveoak.bank/get-started/form-contact-loan-specialist/
- *Track-record note: the widely-cited "2,148 loans / $2.68B / ~7.9% market share" figure is **calendar-year 2025**; SBA **fiscal-year 2025** (ended 9/30/25) was ~2,280 approvals / >$2.8B. Either way, #1 by volume. The 7.9% share figure is not independently confirmed.*

**2. Celtic Bank** (Salt Lake City)
- **What:** Top-five national SBA 7(a) lender with a dedicated **laundromat** lending page; SBA Preferred Lender. Comfortable with smaller-ticket acquisitions than Live Oak.
- **Why for you:** A top-5 SBA shop that actively markets to laundromat buyers and is more willing to do sub-$500K deals. Strong #2 call.
- **Watch-for:** Celtic's own laundromat page describes the bank as "a preferred SBA lender" — the verbatim "top-five SBA lender with extensive experience in the laundromat industry" line attributed to that page elsewhere is **not** on it. The top-5 ranking is true; the self-described laundromat-specialist quote is not. Ask them directly how many laundromat acquisitions they closed last year.
- **URL:** https://www.celticbank.com/laundromat

**3. Readycap / Ready Capital**
- **What:** High-volume national SBA 7(a) acquisition lender; active in the $350K–$1M business-acquisition band that fits your deals precisely.
- **Why for you:** Sized right for a $425K–$650K business-only buy; reputation for getting acquisition deals done. Good third call to create competitive tension on rate/terms.
- **URL:** search "Ready Capital SBA 7(a)" for current intake (https://readycapital.com/).

### Tier 2 — Strong backups / "say yes" lenders

**4. Newtek Bank, N.A. (NewtekOne)**
- **What:** One of the most active national 7(a) lenders; SBA PLP since April 2023; online-first, fast, flexible on sector. Will quote deals more conservative banks pass on.
- **Why/watch-for:** Your "say yes" lender if Tier 1 balks — but in CA their average note rate ran ~11%, the high end. Use as leverage or backstop, not your opening move.
- **Phone:** **1-855-763-9835** | **URL:** https://www.newtekone.com/contact-lending/

**5. Korean-American SBA banks — Bank of Hope & US Metro Bank**
- **What:** Both are real, Korean-American-founded **SBA Preferred Lenders** that rank in the top CA SBA lenders (US Metro #7 by the CA ranking; Bank of Hope #8). General 7(a)/504 lenders with deep Southern California small-business roots.
- **Why for you:** Strong local relationships and active SBA desks in your geography; worth a call, especially if a seller (e.g., the Speed Queen Santa Ana owner, David Choi) has a banking relationship there.
- **Watch-for / correction:** These are **general** SBA lenders, **not** verified laundromat specialists. And **Hanmi Bank does not appear** in the top-20 CA SBA lenders — drop the common claim that Hanmi/Hope/US Metro jointly "lead the California laundromat ranking." Treat Hope and US Metro as solid generalist options, not laundromat experts.
- **URL (US Metro):** https://www.usmetrobank.com/sba-loans/

**6. Byline Bank**
- **What:** Large, active national SBA 7(a) lender; product page lists "up to $5 million."
- **Watch-for / correction:** The often-repeated "Byline starts at $350,000 / inefficient under $1M" line is **not on Byline's own SBA page** (that $350K threshold traces to Ready Capital and a generic ranking blurb). Treat Byline's minimum as unverified — ask them directly. Keep as a backup.
- **URL:** https://www.bylinebank.com/small-business-capital/sba-7a-loan/

### Specialist lane — only if real estate or equipment is in the deal

**7. Eastern Funding** — the dedicated coin-laundry industry lender
- **What:** The specialist non-bank lender for the vended-laundry industry; finance partner behind Maytag/Whirlpool commercial distributors; Coin Laundry Association Elite Sponsor. Does **SBA 504** for laundry projects with real estate and is comfortable layering equipment paper with an SBA real-estate loan.
- **Why for you:** The right call **if** a deal includes the building (504) or you're doing a major equipment re-tool (§5). For a pure business-only buy on leased space, use a 7(a) bank above and keep Eastern in your back pocket for the machines.
- **URL:** https://www.easternfunding.com/markets/laundry | XPRESS-APP equipment financing up to $500K, ~1-day credit decision: https://www.easternfunding.com/markets/laundry/laundry-equipment-financing
- *Eastern does not publish rates/terms/down-payment — quoted per deal. Any rate figure for them is unknowable without a direct call.*

**8. CDC Small Business Finance (Momentus Capital)** — 504 / CRE only
- **What:** Long-standing Southern California CDC (SBA 504 intermediary), not a 7(a) bank. ~$21B deployed since 1978.
- **Why for you:** Relevant **only** if you buy real estate with the laundromat (504 = long-term, fixed-rate, ~10% down, bank 50% / CDC 40% / you 10%). Wrong product for a leased-space business buy.
- **Watch-for:** Rebranded under "Momentus Capital" — confirm the current intake channel before relying on legacy contacts.

### Data-reliability caveat
The GoSBA laundromat ranking page rendered a uniform "9.33%" rate across all 10 lenders, which is a template placeholder, not real per-lender pricing. Use those *rankings/volumes* as directional; ignore that *rate*. Industry-wide CA 7(a) rates in 2026 run ~7.2%–12.1%, averaging ~10.3% — which is why getting 2–3 competing quotes matters.

---

### >>> CALL FIRST: **Live Oak Bank** (1-866-438-9393)
**Reason:** It is the most active laundromat-**acquisition** lender in the country, an SBA Preferred Lender that can close in 30–60 days, and its strict, global-cash-flow underwriting is precisely where your strong W-2 + Lieber Films income does the most work to offset your lack of laundry experience. One caveat to settle on the call: confirm they'll do a sub-$500K business-only deal (they skew larger). **Immediately line up Celtic Bank and Ready Capital as calls 2 and 3** so you have competing term sheets — never negotiate against a single lender.

---

## 3. Exact Document Checklist for Pre-Qual (tailored to a self-employed filmmaker)

SBA pre-qual and full underwriting pull from the same pile; pre-qual uses a subset, underwriting uses all of it. **Assemble everything now.** Your file has one wrinkle — variable self-employed income — and the fix is *presentation*, covered in §3D.

### A. SBA forms (the lender gives you fillable versions)
| Form | What it is | Who does it |
|---|---|---|
| **SBA Form 1919** — Borrower Information | Core application: ownership, loan request, debts, character questions | You, as 100% owner |
| **SBA Form 413** — Personal Financial Statement | Snapshot of all personal assets & liabilities | You (virtually always required) |
| **SBA Form 912** — Statement of Personal History | Only if you answer "yes" to a criminal-history question on 1919 | Likely N/A |
| **IRS Form 4506-C** | Lets the lender pull your IRS transcripts to confirm filed returns | You (personal) **and** the seller (business) |

*Form 1920 is the lender's job (folded into their process Aug 1, 2023) — not your concern.*

### B. Your personal financial documents
- **3 years of complete personal federal tax returns** — all schedules, all pages. As a Schedule C filer, your self-employment income lives *inside* your personal return, so these double as your business-income proof. **(The single most-weighted documents.)**
- **Personal Financial Statement** (Form 413).
- **Proof of equity-injection funds** — 2–3 months of statements for **every** account holding the down-payment cash. Funds must be **seasoned (sitting ~60+ days), traceable, and documented.** Any large recent deposit needs a paper-trail explanation. *Start this clock now — see §6 Week 1.*
- **Government photo ID.**
- **Personal debt schedule** — mortgage, auto, cards. This is the denominator in the global-cash-flow / DSCR math, so be complete and accurate.
- **Resume / management profile** — frame the filmmaker-operator background as transferable: you run a business with revenue, manage vendors and crews, control budgets and cash flow, and deliver under contract. Lenders need to believe you can operate the acquired company.

### C. Documents about the laundromat (seller supplies, you assemble)
- **3 years of the laundromat's business tax returns** (most-weighted; lenders underwrite filed returns, not projections).
- **Year-to-date + prior-year P&Ls.**
- **Bank deposit statements** (cross-checked against reported revenue).
- **Utility bills — especially WATER — 1–2 years.** In this industry, water/gas/electric usage is the most reliable revenue cross-check. Insist on these.
- **The full lease** with remaining term and options (a short lease can sink the whole deal).
- **Card/app processor statements** (PayRange, CleanCloud, SpyderWash, etc.) where they exist — verifiable revenue.
- **Equipment list:** make, model, age, condition of every machine.
- **Business licenses & permits.**
- **Business debt schedule** (anything assumed or paid off at close).

> **The cash-skim trap (most important seller-side risk):** If a seller says "my returns show $X but I really make more in unreported cash," that cash **adds nothing** to your borrowing capacity (lenders only count filed, documented income) and it's a character red flag — a seller who'll lie to the IRS will lie to you. A seller who can't produce clean records for **at least 3 years** is a deal-killer for SBA financing.

### D. HOW to present variable self-employed income (this is the part that wins the loan)
Underwriters run a **global cash flow** analysis: they add income that **survives the acquisition** (your film W-2 and ongoing Lieber Films work) **on top of** the laundromat's cash flow, then divide by total debt service to get DSCR. Strong, durable outside income is exactly what they want behind a semi-absentee asset like a laundromat. Present it so the variability reads as *strength*, not risk:

1. **Lead with the W-2.** Wage income is the cleanest, least-discounted line in their model. Put it front and center.
2. **Show a multi-year average, not a single year.** Pull **3 years** of Schedule C / 1099 income and present the **average** (or, if it's been climbing, the trend). One soft year inside a strong 3-year average is normal for a filmmaker and underwriters expect it.
3. **Add back the non-cash and one-time items.** Schedule C net is *after* depreciation, home-office, and other non-cash deductions. Provide a clean **add-back schedule** (depreciation, §179, one-time gear purchases, owner health insurance) so they see true cash flow, not taxable income. This single step often lifts qualifying income meaningfully.
4. **Document the pipeline.** Signed contracts, retainers, recurring brand clients (the NFLPA / TransUnion / Kelp-type work in development) — anything that shows revenue continuity into the loan period.
5. **Pre-empt the variability question in writing.** A one-paragraph cover memo: "Film/production income varies year to year by project; the 3-year average is $X; W-2 base is $Y; the laundromat is a semi-absentee asset I'll oversee, not a job I'm quitting my income for." Hand them the narrative so they don't invent a worse one.
6. **Keep business and personal cleanly separable.** If Lieber Films income flows through the personal return, make sure the lender can see which dollars are wage vs. self-employment at a glance.

**Net:** your profile is a *good* SBA profile. The qualifying constraint is **cash to close** (you must inject ~10% of project cost, ≥5% of it your own cash), not eligibility.

---

## 4. Deal-Financing Model — 3 Capital Stacks for $425K and $650K

**Assumptions (stated so you can swap them):**
- Modeled note rate **9.25%** (Prime 6.75% + 2.5% spread), **10-year** fully-amortized SBA term.
- Seller-carry rate **7%**, 10-year amortization (negotiable).
- SDE (seller's discretionary earnings) assumptions for owner-cash-flow lines: **$150K** on the $425K deal (~2.8x), **$230K** on the $650K deal (~2.8x). *These are placeholders — replace with the actual verified SDE from the seller's books.*
- Modeled on purchase price for clarity; **add ~$10–20K** for closing costs + financed guaranty fee + a 2–3 month operating reserve. Equity injection is technically measured on that larger total project cost.
- Upfront SBA guaranty fee (≈3% of guaranteed portion) shown separately; normally **financed into the loan**, not paid in cash.

### $425,000 deal

| | **[A] Standard 90/10** | **[B] SBA + 10% seller standby + min cash** | **[C] Heavy seller financing, low down** |
|---|---|---|---|
| Structure | 90% SBA / 10% cash | 80% SBA + 10% seller note (full standby) + 10% cash | 10% cash down + 90% seller carry @7% |
| SBA loan | $382,500 | $340,000 | — |
| Seller note | — | $42,500 (full standby, no pmts during SBA term) | $382,500 |
| **Cash from Aaron** | **$42,500** | **$42,500** | **$42,500** |
| Upfront guaranty fee (financed) | ~$8,600 | ~$7,650 | $0 (no SBA) |
| **Monthly debt service** | **$4,897** (SBA) | **$4,353** (SBA only; seller note deferred) | **$4,441** (seller note) |
| Annual debt service | $58,767 | $52,237 | $53,294 |
| **Owner cash flow (SDE $150K − DS)** | **$91,233** | **$97,763** | **$96,706** |
| Business-only DSCR | ~2.55x | ~2.87x | ~2.81x |

### $650,000 deal

| | **[A] Standard 90/10** | **[B] SBA + 10% seller standby + min cash** | **[C] Heavy seller financing, low down** |
|---|---|---|---|
| Structure | 90% SBA / 10% cash | 80% SBA + 10% seller note (full standby) + 10% cash | 10% cash down + 90% seller carry @7% |
| SBA loan | $585,000 | $520,000 | — |
| Seller note | — | $65,000 (full standby) | $585,000 |
| **Cash from Aaron** | **$65,000** | **$65,000** | **$65,000** |
| Upfront guaranty fee (financed) | ~$13,200 | ~$11,700 | $0 (no SBA) |
| **Monthly debt service** | **$7,490** (SBA) | **$6,658** (SBA only) | **$6,792** (seller note) |
| Annual debt service | $89,879 | $79,892 | $81,508 |
| **Owner cash flow (SDE $230K − DS)** | **$140,121** | **$150,108** | **$148,492** |
| Business-only DSCR | ~2.56x | ~2.88x | ~2.84x |

### The 5%-down floor (worth knowing, harder to land)
Post-SOP 50 10 8, the **lowest cash an SBA-backed deal allows is ~5% of price** — and only if the seller carries the other 5%+ of equity **on full standby** (no payments for the entire SBA loan life). Example structure: **85% SBA + 10% seller standby + 5% cash.**
- **$425K:** SBA $361,250 / seller standby $42,500 / **cash $21,250** → SBA payment **$4,625/mo** ($55,502/yr) → owner cash flow ~**$94,498**.
- **$650K:** SBA $552,500 / seller standby $65,000 / **cash $32,500** → SBA payment **$7,074/mo** ($84,886/yr) → owner cash flow ~**$84,886 DS, ~$145,114 cash flow**.

### How to read this
- **Stack A** is the cleanest, fastest to underwrite, and the most cash out of pocket. It's the default.
- **Stack B** is the sweet spot for *you*: same cash as A, but a chunk of the price sits in a **standby seller note** that the SBA lets you exclude from debt service during the loan term — so your monthly payment and DSCR both improve, and the seller's willingness to carry signals confidence to the bank. **This is the structure to pursue with retiring owners** (the Speed Queen Santa Ana and Laundry Basket South profiles fit).
- **Stack C** drops the SBA entirely. Lower monthly than A, no guaranty fee, fastest close, **but** you give up the bank's third-party diligence — so you must verify the books, water bills, and lease yourself, rigorously. Realistic only with a motivated owner-financier; ~80% of small-business sales already include *some* seller carry, but full 90% carry is the exception.
- **Owner cash flow** above is pre-tax, before any reinvestment, owner salary you choose to draw, or capex. DSCR is shown business-only; with your **outside W-2 + Lieber Films income added in, global DSCR is higher still** — that's your cushion and your approval lever.

> **One structural caution on seller notes (corrected):** If the seller **stays on owning <20%** after the sale (a partial change of ownership), they must provide a **limited guaranty for the full loan amount for 2 years** (or until the loan is current 12 consecutive months) — **but they are NOT required to pledge personal assets/collateral.** It is a limited guaranty, not a full personal guarantee with a collateral pledge. If the seller fully exits (your likely case — a clean 100% buy), this doesn't apply.

---

## 5. Equipment / Re-Tool Financing (if you install new machines to lift revenue)

You'll typically combine **two layers**: the **SBA 7(a)** for the acquisition/goodwill/working capital, and **equipment financing** for new washers/dryers. The core decision is whether new equipment goes *inside* the SBA loan or is financed *separately*.

**Market terms in 2026:** equipment financing ~**6%–12%**, terms **5–7 years**, down payment **0%–20%**, credit floor ~**620**.

### Options
- **Eastern Funding** (industry specialist) — **XPRESS-APP up to $500,000**, app-only, ~**1-business-day** credit decision. Judges three things: creditworthiness, your cash injection, site quality. Finances new installs and upgrades; also does acquisitions, build-outs, and 504 for real estate. Rates quoted per deal (not published). https://www.easternfunding.com/markets/laundry/laundry-equipment-financing
- **Speed Queen / Alliance Laundry Systems** (Speed Queen Financial Services) — most rate-transparent captive. **Loans, terms 60–120 months.** Advertising **~7.50% fixed for the first 12 months, then WSJ Prime + ~1.75–2.00% variable**, with **90 days deferred payments**. Standard program is **new Speed Queen/Alliance equipment only** (no used, no competitive brands). *Flag: a separate claim that Speed Queen will finance "up to 80% of purchase price" for a store bought with competitive equipment contradicts the "new-only" line on the distributor finance page — treat the 80% claim as unconfirmed; it may be a distinct acquisition product or old marketing. Verify directly.* https://distribution.alliancelaundry.com/finance/
- **Dexter Financial / Continental CustomSelect** — other manufacturer captives; comparable structures if you spec those brands.

### Stacking strategy (which layer for the machines?)
- **Put equipment *inside* the SBA 7(a)** when you want one payment, one closing, and to preserve cash — equipment financed via 7(a) gets the same 10-year term (machine useful life supports it). Simplest for a first-timer; the re-tool budget just rolls into the acquisition loan and the whole thing underwrites on combined cash flow.
- **Finance equipment *separately*** (Eastern or a captive) when (a) you want to keep the SBA loan smaller/faster, (b) the captive's intro rate beats your SBA rate, or (c) you're re-tooling *after* closing rather than at purchase. Watch total leverage — a second monthly payment pressures DSCR.
- **Captive intro-rate trap:** the ~7.50%-fixed teaser resets to Prime + spread (variable) after 12 months. Compare the *post-teaser* rate to your fixed-amortizing SBA option before choosing.
- **Site quality drives equipment approval.** A strong location and lease help the equipment lender as much as the SBA lender — keep the lease long.

*(504 only matters if you also buy the building. For leased-space re-tools, ignore 504 and use 7(a) + a captive.)*

---

## 6. 30-Day Action Timeline (today → submitting a pre-qual application)

Today is **Thursday, May 29, 2026.**

### Week 1 (May 29 – Jun 4): Money seasoning + document gathering
- **TODAY:** Identify the exact accounts holding your down-payment cash and **stop moving money between them.** SBA wants funds *seasoned ~60+ days* and traceable — the clock starts now, so any consolidation should happen immediately and then sit still.
- Pull **3 years of complete personal federal tax returns** (all schedules) + the most recent 2 years of 1099s/W-2s.
- Order/locate **2–3 months of statements for every account** that will fund the equity injection.
- Draft your **personal debt schedule** and a **1-page operator resume** reframing filmmaking as business operation.
- Build the **Schedule C add-back schedule** (depreciation, §179, one-time gear, owner health insurance) and a **3-year average self-employment income** number.

### Week 2 (Jun 5 – Jun 11): Lender outreach
- **Call Live Oak Bank first** (1-866-438-9393) using the §7 script. Confirm appetite for a sub-$500K business-only laundromat deal and ask for their pre-qual document list.
- Within 48 hours, call **Celtic Bank** and **Ready Capital** — you want **2–3 competing pre-quals**, not one.
- Ask each: required down payment for a no-experience buyer, all-in rate, total closing costs, whether they'll allow a **10% seller note on standby** toward equity, and typical time-to-close.
- Open a shared folder; drop every document as you collect it.

### Week 3 (Jun 12 – Jun 18): Package assembly + target-deal financials
- Complete the lender's **Form 1919** and **Form 413** for your front-runner.
- For any specific target (e.g., Speed Queen Santa Ana at $425K, or Laundry Basket South if Jeff will engage): request the **seller's 3 years of returns, P&Ls, 1–2 years of water bills, the lease, and equipment list.** No clean 3-year records = no SBA deal; learn that early.
- Write the **variable-income cover memo** (§3D #5).
- Get a verbal read from your front-runner lender on the global-cash-flow math using your numbers.

### Week 4 (Jun 19 – Jun 27): Submit pre-qual
- Submit the **pre-qual application** to your top lender with the full personal package; submit to a second lender in parallel for a competing read.
- Sign **4506-C** so they can pull transcripts.
- Confirm the **capital stack** (A vs. B) you're targeting and the cash-to-close figure.
- Goal by Jun 27: **a pre-qual / soft term indication in hand**, so when the right store appears you move on it instead of starting cold.

> Realistic close timeline once a specific deal is under LOI: **30–60 days** with a Preferred Lender. The pre-qual above front-loads everything that doesn't depend on the specific store, so the only remaining variable is the target's books and lease.

---

## 7. Script for the First Lender Call (Live Oak Bank, 1-866-438-9393)

> Keep it tight. You're qualifying *them* as much as they're qualifying you. Have your 3-year average income and down-payment cash figure in front of you.

**Opening:**
"Hi, my name is Aaron Lieber, I'm in San Clemente, California. I'm looking to finance my first laundromat acquisition with an SBA 7(a) loan, and I understand Live Oak is the most active laundromat lender in the country. I'd like to talk through whether I'm a fit and get pointed to a loan specialist."

**Your profile (say this proactively):**
"Quick picture of me: I own a film production company, Lieber Films. I have W-2 wage income plus self-employed Schedule C income, three clean years of tax returns, and the cash for a 10% equity injection that's been seasoned in my accounts. My credit is strong. I'm targeting an established, cash-flowing laundromat in Orange County or North San Diego County, business-only on a leased space, in the **$425,000 to $650,000** range."

**The five questions to get answered:**
1. "For a first-time owner with strong outside income but no laundry experience, what down payment will you want — the 10% minimum, or do you underwrite to 15%?"
2. "Will you count a **10% seller note on full standby** toward my equity injection, so my own cash can stay near 5%?"
3. "What's the all-in note rate today, and roughly what are total closing costs including the guaranty fee?"
4. "You run a **global cash flow** analysis, correct? My W-2 and ongoing film income continue after I buy — can you confirm those get added to the business's cash flow for DSCR?"
5. "If I get you a complete pre-qual package and then a specific store under LOI, what's your typical time to close?"

**Close:**
"Great. Please send me your pre-qualification document checklist and connect me with a loan specialist. I'll have my three years of returns, personal financial statement, and proof of funds ready this week."

**If they hesitate on a sub-$500K business-only deal:** "Understood that I'm on the smaller side for you. If this isn't the right fit, I'd appreciate a candid steer — I'm also speaking with Celtic Bank and Ready Capital this week."
*(This signals you have options and keeps them competitive without burning the relationship.)*

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### Verified corrections applied in this document
- **SOP:** SOP 50 10 8 (eff. June 1, 2025) is current; **no SOP 50 10 9 exists.** The Dec 19, 2025 citizenship procedural notice (narrow 5%-foreign-ownership exception) was **rescinded effective March 1, 2026** — that exception no longer applies. (Peripheral to loan terms; flagged for accuracy.)
- **Base rates:** SBA expanded base-rate options from 2 to 5 effective **March 1, 2026** (Prime, Optional Peg, daily SOFR, 5-yr Treasury, 10-yr Treasury); alternative base rates can't be used on secondary-market loans, so Prime (6.75%) remains the operative quote. The 4.50% Optional Peg was the **Q1 FY2026 (Jan–Mar)** figure, not necessarily current.
- **Live Oak volume:** the "2,148 loans / $2.68B" figure is **calendar-year 2025**; SBA **FY2025** was ~2,280 / >$2.8B. 7.9% market share unconfirmed.
- **Byline:** the "$350K minimum / sub-$1M inefficiency" claim is **not** on Byline's own page — unverified for Byline.
- **Celtic:** its laundromat page says only "a preferred SBA lender"; the "top-five … extensive laundromat experience" verbatim quote is **not** on that page (top-5 ranking is true).
- **Huntington:** the "#1 by unit count, 7th year running" was an **October 2024 / FY2024** announcement — stale as a 2026 current claim; not re-verified for FY2025, so Huntington is omitted from the priority list pending reconfirmation.
- **Korean-American banks:** Bank of Hope (#8) and US Metro Bank (#7) are real top-CA SBA Preferred Lenders but **general** SBA lenders, not laundromat specialists; **Hanmi is not in the top-20 CA SBA lenders** — the "Hanmi/Hope/US Metro lead the laundromat ranking" claim is unsupported.
- **Seller guaranty:** a seller retaining <20% provides a **limited guaranty for the full loan amount for 2 years** (or until 12 consecutive current months) and is **NOT required to pledge personal assets** — not a full personal guarantee with collateral.