Financing Analysis · Summit Operations Group LLC · April 2026

Financing Comparison

Three financing paths — Kevin's SQ conventional, Clean Laundry Funding (Laundrylux), and Newtek SBA 504. All terms verified against source documents where available.

Best monthly payment

$8,041

Newtek SBA 504 (est.)

Lowest equity required

$132K

SBA 504 — $33K/partner

Fastest to close

CLF

Clean Laundry Funding

Highest equity required

$450K

Kevin's SQ — $112K/partner

Overview

Three financing options on the table

Sources: Kevin's proforma (Apr 21), Laundrylux quotes (Apr 13 & Apr 24), Newtek SBA 504 active application.

Kevin's SQ Conventional

Hynes & Waller · Alliance Laundry Systems Finance (est.)

SQ Equipment only path

SourceKevin's Apr 21 proforma

StatusModel only — not a real offer

CoversEquipment + construction

Total project~$1,500,000

Down payment30% = $450,000

Per partner (4)$112,500

Amount financed$1,050,000

Interest rate6.5% (assumed)

Term9 years (108 months)

DeferralNone

Warranty includedSQ standard (5yr parts)

Estimated Monthly

$12,867

$154,404/yr in debt service

Total interest paid: ~$338,636

Clean Laundry Funding

Patrick Jackson · Laundrylux · Devils Lake, ND

EL Equipment path

SourceApr 13 quotes (confirmed in writing)

StatusTerms confirmed — not yet applied

CoversEquipment only — construction separate

Equipment cost$991,324 (Quote 297)

Down paymentTBD — ask PJ

Amount financed~$991,324 (est. 0% down)

Interest rate7.5% (confirmed Apr 13)

Term10 years (120 months)

Deferral6 mo deferred + 3 mo IO

ConstructionNOT included — need separate loan

Warranty includedEL Special Extended (10yr structural)

Estimated Monthly (after 9-mo deferral)

$11,519

$138,228/yr · equipment only

+ construction financing TBD (~$2,500–4,000/mo)

Months 1–6: $0 · Months 7–9: interest only ~$6,185/mo

Newtek SBA 504

Newtek Bank (1st) + SBA CDC (2nd) · Active application

Best terms — longer to close

SourceActive application (Andres)

StatusIn progress — pending approval

CoversFull project (equipment + construction)

Total project~$1,318,000 (EL + Terry's GC)

Down payment10% = $131,800

Per partner (4)$32,950

1st mortgage (bank, 50%)$659,000 · ~7.5% · 10yr

2nd mortgage (SBA, 40%)$527,200 · ~5.77% fixed · 25yr

Blended effective rate~6.5% (estimated)

DeferralNone (standard)

Close timeline60–90 days typical

SBA 8(a) noteLLC structured for Andres as qualifying owner

Estimated Monthly

$8,041

$96,492/yr · full project covered

Total interest paid: ~$1,225,000 over 25yr

Critical gap: Clean Funding does not cover construction

Quote 297 is equipment only ($991K). Terry's construction is $326,350. If you use Clean Funding, you need a separate construction loan (~$326K). At typical construction loan rates (8–9%, 10yr), that adds ~$3,800–4,000/mo, making CLF's true all-in cost ~$15,300–15,500/mo — more expensive than Kevin's model. SBA 504 covers everything in one loan.

Comparison

Side-by-side — all terms

Green = best, Red = worst for that metric.

Term	Kevin's SQ	Clean Funding (CLF)	Newtek SBA 504
What it covers	Equipment + construction	Equipment only ⚠	Full project ✓
Total project amount	~$1,500,000	$991,324 (equip only)	~$1,318,000
Down payment	$450,000 (30%)	TBD (ask PJ)	$131,800 (10%)
Down per partner	$112,500	TBD	$32,950
Interest rate	6.5% (assumed)	7.5% (confirmed)	~6.5% blended
Term	9 years	10 years	25 years
Monthly payment	~$12,867	~$11,519 (equip only)	~$8,041
Payment deferral	None	9 months (6 deferred + 3 IO)	None
Annual debt service	~$154,404	~$138,228 (equip only)	~$96,492
Total interest paid	~$338,636	~$390,356	~$1,225,000 (25yr)
Close timeline	Fast (dealer finance)	Fast	60–90 days
Status	Not a real offer	Terms confirmed — not applied	Active application
Equipment brand	Speed Queen required	Electrolux required	Any brand
Warranty tied to loan	SQ 5yr standard	EL 10yr structural included	Any / independent

Cash Flow

Net income after debt service — by turns/day

Using our EL model income projection. CF before debt from the proforma, then subtracting each financing scenario's monthly payment.

Turns/day	CF before debt	Net — Kevin's SQ	Net — CLF (equip only)	Net — SBA 504
3.0T	$5,820	(–$7,047)	(–$5,699)	(–$2,221)
3.5T	$8,332	(–$4,535)	(–$3,187)	$291
4.0T	$11,678	(–$1,189)	$159	$3,637
4.5T	$14,800	$1,933	$3,281	$6,759
5.0T	$18,200	$5,333	$6,681	$10,159
5.5T	$22,100	$9,233	$10,581	$14,059

4T/day is the break-even test

At 4 turns/day (Kevin Cheung's reported current level): SBA 504 is positive $3,637/mo. Clean Funding barely breaks even at $159/mo (equipment only — add construction loan and it goes negative). Kevin's model is negative $1,189/mo even at 4T. SBA 504 is the only option that works at 4 turns without needing to grow revenue first.

True cost

Total cost of financing over full term

Kevin's SQ — 9 years

Principal borrowed$1,050,000

Monthly payment$12,867

Total paid (108 mo)$1,389,636

Total interest$339,636

Interest as % of principal32.3%

Paid off byJan 2035

Shortest term = least interest paid. But highest monthly + highest down payment = most cash required upfront and most cash flow pressure in years 1–3.

Clean Funding — 10 years

Principal borrowed~$991,324

Monthly payment (post-deferral)$11,519

Total paid (120 mo)$1,382,280

Total interest~$390,956

Interest as % of principal39.4%

Paid off by~Apr 2036 (+ 9 mo deferral)

Equipment only — does not include construction. Add $326K construction loan separately. True total interest is significantly higher.

SBA 504 — 25 years

Principal borrowed~$1,186,200

Monthly payment$8,041

Total paid (300 mo)$2,412,300

Total interest~$1,226,100

Interest as % of principal103%

Paid off by~Jan 2051

Lowest monthly = most operational flexibility. You pay more total interest but preserve cash. Most laundromat owners refinance or sell within 7–10 years anyway — few hold to full 25yr term.

Capital required

Down payment & equity per partner

Summit Operations Group LLC has 4 partners. Down payment split equally.

Kevin's SQ — per partner

$112,500

30% of $1.5M ÷ 4 partners

Highest cash requirement. $450K total down means you need significant liquid assets before closing.

Clean Funding — per partner

TBD

Down payment % not confirmed

Ask PJ: is this 0% down on equipment? If so, partners only need to fund construction ($326K ÷ 4 = $81.5K each).

SBA 504 — per partner

$32,950

10% of $1.318M ÷ 4 partners

Lowest equity required. $79.5K less per partner vs Kevin's model. Preserves capital for operations, emergencies, and WDF startup.

The equity difference funds your first year of operations

The $79,550 difference per partner between SBA 504 and Kevin's financing ($112,500 vs $32,950) is not just a down payment gap — it's working capital. Keeping that cash in the business means you can absorb a slow ramp-up period, fund WDF supplies, cover unexpected repairs, and pay salaries without stress. For first-time operators, this buffer matters more than it looks on paper.

Analysis

Pros & cons — each path

Kevin's SQ Financing

Shortest term — paid off in 9 years

Lowest total interest ($339K)

Covers equipment + construction in one loan

Dealer-arranged — fast to close

Requires Speed Queen equipment (locks you in)

30% down = $450K — largest cash outlay

Highest monthly payment ($12,867)

No deferral — payments start immediately

Negative cash flow at 4T/day

Not a real offer — Kevin's model assumption, not an Alliance Finance term sheet

Clean Laundry Funding

Rate confirmed in writing (7.5%)

9-month deferral = first 9 months near zero payments

EL Special Extended Warranty included (10yr structural)

Fast close (dealer-arranged)

Laundrylux manages the relationship — one contact

Equipment only — construction NOT covered

Construction adds ~$3,800–4,000/mo separately

Requires Electrolux equipment (locks you in)

Higher rate (7.5%) vs SBA 504 (~6.5%)

Ask PJ: down payment %, can construction be rolled in?

Newtek SBA 504

Lowest monthly payment ($8,041/mo)

Lowest down payment ($132K — $33K/partner)

Covers full project (equipment + construction)

Not tied to any equipment brand

SBA fixed rate on debenture portion (~5.77%)

Positive cash flow at 4T/day

Takes 60–90 days to close

Highest total interest over 25 years ($1.2M)

More paperwork — 4 partners, personal guarantees

SBA 8(a) structure requires Andres as qualifying owner

G-4 visa status for Ricardo & Diana may affect personal guarantee eligibility — confirm with attorney

Timeline

Cash flow by month — first 12 months

Assuming store opens Month 1, ramps from 2.5T to 4T by Month 6. Green = positive, Red = negative.

Month	Turns (est.)	CF before debt	Kevin's SQ	CLF (equip)	SBA 504
1–6	2.5–3.0T (ramp)	~$3,500–5,800	(–$7,000 to –$9,400)	$0 (deferred!)	(–$2,200 to –$4,500)
7–9	3.5T	~$8,332	(–$4,535)	$2,147 (IO only ~$6,185)	$291
10–12	4.0T	~$11,678	(–$1,189)	$159	$3,637

The CLF deferral is a meaningful operational advantage

6 months of zero payments gives you a runway to ramp up. During those months you keep all revenue (minus expenses) as cash. At 3T/day that's roughly $5,000–$8,000/mo you'd otherwise be sending to debt service. After 9 months, the full payment kicks in — you need to be at ~3.5T+ by then to stay positive.

Action items

Open questions — get answers before deciding

Clean Laundry Funding (PJ / Patrick Jackson)

1Down payment required? Is this 0% down on equipment, or does CLF require a deposit?

2Can construction be rolled in? Can CLF finance equipment + Terry's $326K construction in one loan?

3Rate on Quote 297 — still 7.5%? Quote 297 note lists "3 months deferred + 3 months IO" vs Apr 13 quotes showing "6 months deferred + 3 months IO". Which applies?

4Is the rate fixed or variable? 7.5% for the full 10 years or adjustable?

5Who is the actual lender? CLF appears to be headquartered in Devils Lake, ND. Is this an Alliance Laundry Systems program or independent?

Newtek SBA 504

1Application status — has Andres submitted? What documents are still needed?

2Timeline to close — if approved, when can funds be available? Can this meet the EL quote expiry (Apr 30)?

3G-4 visa impact — Ricardo Lemus and Diana Trillos are on G-4 visas. Does this affect their ability to personally guarantee the SBA loan?

4Exact rate today — what is Newtek quoting for the bank portion (1st mortgage) and what is the current SBA CDC debenture rate?

5Can SBA 504 cover both EL + construction? Confirm with Newtek that Terry's $326K buildout qualifies as eligible project costs.

Kevin's SQ Financing

1Is this a real offer? Kevin's proforma uses 6.5%/9yr/30% as assumptions — does Hynes & Waller or Alliance actually offer these terms, or do we need to apply separately?

2Can the down payment be reduced? 30% is very high. Does Alliance offer SBA-compatible financing at 10–15% down?

EL quote expires April 30 — SBA 504 cannot close in time

The Laundrylux quotes (Highmark, Duncan, Quote 297) all expire April 30, 2026. SBA 504 typically takes 60–90 days to close. If you want EL equipment, you likely need to either (a) use Clean Laundry Funding and close faster, or (b) ask Patrick Jackson to extend the quote expiry while SBA processes. Do not let the deadline pass without a plan.

Confidential — Summit Operations Group LLC — April 2026
All figures are estimates based on available documentation. Confirm all terms directly with lenders before committing.