SBA 504 loans for Auto Repair Shops
Over the last decade, auto repair shop owners have used SBA 504 financing to fund more than $1.7 billion in real estate, construction, and equipment. We help you secure the same financing — with 25-year fixed rates and a team that knows the 504 program inside out.
The Auto Repair Shop SBA 504 market, by the numbers
What ten years of Auto Repair Shop SBA 504 loans — pulled directly from the SBA's own data — tell us about how operators finance this business.
Source: SBA 504 loan approvals for NAICS 811111 , FY2016–FY2025. Data via FOIA request, updated quarterly.
What an SBA 504 loan covers for a Auto Repair Shop
SBA 504 financing is built for long-term assets — the real estate, infrastructure, and major equipment that anchor a Auto Repair Shop business.
Property purchase & land
Own the shop you turn wrenches in instead of renting it. Whether you're buying the building you already operate in or a corner with the bays and lot you need, 504 lets you take down the real estate with as little as 15% down and stop paying a landlord.
- The building you currently lease
- Freestanding shops and service buildings
- Corner lots with room for bays and parking
- Buying out your current lease
- Converting a warehouse or garage to a shop
Ground-up construction
Build a shop laid out for how you actually work. 504 covers the shell and the build-out — the drive-in bays, the lifts, the floor drains, the ventilation, and the compressed-air lines that a working shop can't open without.
- Ground-up shop construction
- Service bays and lift pits
- Floor drains and oil-water separators
- Exhaust ventilation and compressed air
- Customer waiting area and signage
Expansion & second locations
More bays means more cars per day. Use 504 to add bays, build out a specialty service area, or open a second shop across town — without draining the cash flow that keeps the current lifts busy.
- Second and third shop locations
- Adding service bays
- Building out alignment or tire areas
- Acquiring another operator's shop
- Renovating a space you've taken over
Equipment with long lives
The shop equipment that keeps cars moving through the bays — and lasts long enough to finance. 504 is built for big-ticket gear with a long useful life, so you spread the cost over the years it'll actually serve your customers.
- Vehicle lifts and hoists
- Alignment racks and tire machines
- Diagnostic systems and scan tools
- Air compressors and fluid systems
- Shop management and POS software
How SBA 504 financing is structured
Three pieces of capital come together so you only put 10% down on a project that might cost millions.
First lien (50%)
APC funds this directly — we're a private direct lender, not a broker. Term and rate quoted upfront.
SBA 504 / CDC (40%)
Second lien, fixed for 25 years through a Certified Development Company. Rates locked at funding.
Borrower equity (10%)
Cash down, retained equity in existing real estate, or seller carry-back in some cases.
What a 504 project for a Auto Repair Shop looks like
Three illustrative examples showing typical deal structures, financing splits, and project scopes.
A repair shop that had rented the same building for years bought it outright as the lease came up for renewal. As an established, cash-flowing business on a special-purpose property, the purchase came together at 15% down. The 25-year fixed 504 rate turned an unpredictable lease into an owned asset with a payment that won't jump at renewal.
A longtime mechanic who'd outgrown a cramped rented space built a ground-up shop with six bays, proper ventilation, and a real customer waiting area. As an experienced operator on a special-purpose build, it was structured at 15% down. One 504 loan wrapped the land, the building, and the lifts at a long fixed rate.
A busy single-location shop opened a second across town to capture demand it was turning away. Rather than draining the cash flow from the original bays, the owner used a 504 loan at 15% down to buy and build out the new shop. The long fixed term kept payments steady while the second location built its customer base.
Owning your Auto Repair Shop property beats leasing — here's the math
Slide the inputs to match your situation. The equity number on the right is what you'd have in 10 years if you owned instead of leased.
Where Auto Repair Shop SBA 504 money is going
Geography, deal sizes, top CDCs, and the banks making it happen — all pulled from a decade of SBA data.
Top 10 states by loan volume
| State | Loans | Total funded | |
|---|---|---|---|
| 1 | California | 265 | $171M |
| 2 | Minnesota | 106 | $44M |
| 3 | Massachusetts | 86 | $43M |
| 4 | Florida | 84 | $45M |
| 5 | Illinois | 75 | $29M |
| 6 | Colorado | 68 | $41M |
| 7 | Utah | 66 | $41M |
| 8 | Texas | 56 | $34M |
| 9 | Virginia | 53 | $25M |
| 10 | Arizona | 48 | $32M |
Deal size distribution
Top CDCs financing Auto Repair Shops
These Certified Development Companies have funded the most Auto Repair Shop SBA 504 deals over the past decade. Click any CDC for their full profile.
Top 10 third-party lenders for Auto Repair Shop deals
| # | Lender | Loans | Volume |
|---|---|---|---|
| 1 | JPMorgan Chase Bank | 34 | $24M |
| 2 | Zions Bank | 32 | $21M |
| 3 | Wells Fargo Bank | 31 | $28M |
| 4 | Glacier Bank | 24 | $14M |
| 5 | Bank of America | 23 | $16M |
| 6 | Harvest Commercial Capital | 23 | $17M |
| 7 | Rockland Trust Company | 19 | $10M |
| 8 | FirstBank | 18 | $20M |
| 9 | First-Citizens Bank & Trust Company | 17 | $12M |
| 10 | Tri Counties Bank | 14 | $13M |
What it takes to qualify
SBA 504 has clear, objective criteria. Most Auto Repair Shop operators we work with qualify.
Business requirements
- For-profit businessSBA 504 is for operating companies, not investors or holding companies.
- Owner-occupied useYou operate the Auto Repair Shop — you're not just buying real estate to lease out.
- US-based and below SBA size limitsMost Auto Repair Shop businesses qualify under SBA's small business size thresholds.
- Demonstrated ability to repayCash flow, credit, and business experience all matter — but no perfect score required.
Project requirements
- 51% owner-occupancyYour business must occupy at least 51% of the financed property.
- Eligible use of fundsReal estate, ground-up construction, major equipment, and certain refinances qualify.
- Long useful lifeEquipment financed under 504 must have a useful life over 10 years.
- 10% equity contributionCash, retained property equity, or seller carry — structured to fit your situation.
Most Auto Repair Shop operators qualify. The fastest way to know is a 10-minute call. 1-855-504-LOAN
Built for Auto Repair Shop financing
We're a direct lender that specializes in SBA 504 — not a broker, not a generalist.
Explore SBA 504 loans by industry
A decade of loan data, case studies, and deal structures for each of the property types we finance most.
Ready to finance your Auto Repair Shop project?
Schedule a 15-minute call. No application fee, no obligation.