Financing Analysis · Summit Operations Group LLC · Updated May 2026

Financing Comparison

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

Best monthly payment

~$9,200

NWFCU + BFG SBA 504 (est. on $1.6M)

Lowest equity required

$160K

SBA 504 — $80K/guarantor (2 guarantors)

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 Quote 297-5-8-26 (May 8), NWFCU + BFG SBA 504 active (May 2026). B&G Construction selected — $465K–$540K construction budget now known.

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

CoversSQ equipment only — construction now B&G ($465–540K separate)

SQ equipment cost~$1,042,000 (Quote #29937 minus $450K construction)

+ B&G construction$465K–$540K (separate)

Total project (SQ path)~$1,507K–$1,582K

Down payment30% = ~$450,000–$475,000

Per guarantor (2)~$225,000–$237,500

Amount financed~$1,057,000–$1,107,000

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

SourceQuote 297-5-8-26 (updated May 8)

StatusTerms confirmed — extra benefit offered

CoversEquipment only — B&G construction separate

Equipment costUpdated May 8 (135lb removed, HighMark adjusted)

Down paymentTBD — confirm with PJ

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

Interest rate7.5% (confirmed) + extra benefit on terms

Term10 years (120 months)

Deferral6 mo deferred + 3 mo IO

ConstructionNOT included — B&G $465–540K separate

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

NWFCU + BFG SBA 504

NWFCU (1st, William Wilson) + Business Finance Group (2nd, Gerald Baroudi)

Best terms — active & confirmed

SourceNWFCU + BFG confirmed May 13, 2026

StatusReady — awaiting LLC structure + lease

CoversFull project (equipment + B&G construction)

Total project~$1,600,000 (Andres confirmed May 13)

Down payment10% = $160,000

Per guarantor (2 — Andy + Enrique)$80,000

1st mortgage (NWFCU, 50%)$800,000 · ~7.5% · 10yr

2nd mortgage (BFG/SBA, 40%)$640,000 · ~5.77% fixed · 25yr

Blended effective rate~6.5% (estimated)

Family/investor loanAllowed — subordinated, counts toward injection

Close timeline60–90 days once package assembled

ContactsWilliam Wilson 703-709-8900 x4734 • Gerald Baroudi 410-900-8271

Estimated Monthly

~$9,200

est. on $1.6M total · full project covered

Total interest paid: ~$1.4M over 25yr

Critical gap: Clean Funding does not cover construction

Quote 297-5-8-26 is equipment only. B&G construction is $465K–$540K. If you use Clean Funding, you need a separate construction loan (~$500K). At typical construction loan rates (8–9%, 10yr), that adds ~$6,000–6,500/mo, making CLF's true all-in cost ~$17,500–18,000/mo — far more expensive than SBA 504. SBA 504 (NWFCU + BFG) covers the full $1.6M project in one structure.

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	SQ equipment only ⚠ — B&G construction separate	EL equipment only ⚠ — B&G construction separate	Full project ✓ (equipment + B&G construction)
Total project amount	~$1,507K–$1,582K (SQ + B&G)	EL equip only (updated May 8)	~$1,600,000 (confirmed)
Down payment	~$450K–$475K (30%)	TBD (ask PJ)	$160,000 (10%)
Down per guarantor (2)	~$225K–$237K	TBD	$80,000
Interest rate	6.5% (assumed)	7.5% (confirmed) + extra benefit	~6.5% blended
Term	9 years	10 years	25 years
Monthly payment	~$12,867 (equip only — + B&G loan TBD)	~$11,519 (equip only — + B&G loan TBD)	~$9,200 (all-in est.)
Payment deferral	None	9 months (6 deferred + 3 IO)	None
Close timeline	Fast (dealer finance)	Fast	60–90 days after package assembled
Status	Not a real offer	Quote updated May 8 — extra terms available	NWFCU + BFG confirmed May 13
Equipment brand	Speed Queen required	Electrolux required	Any brand
Warranty tied to loan	SQ 5yr standard	EL 10yr structural included	Any / independent
Lenders	Alliance Laundry Finance (est.)	Laundrylux Clean Funding	NWFCU (William Wilson) + BFG (Gerald Baroudi)

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

SBA 504 guarantors: Andres + Enrique (2 owners). Non-US investors structured as subordinated lenders — they receive loan repayments at agreed rate, not equity dividends during SBA term.

Kevin's SQ path — per guarantor

~$225K

30% of ~$1.5M ÷ 2 guarantors

Highest cash requirement. Does NOT include B&G construction — add $465–540K construction financing on top.

Clean Funding — per guarantor

TBD

EL equipment down payment % not confirmed

If 0% down on equipment, guarantors still need to fund B&G construction separately (~$500K ÷ 2 = $250K each). True cost likely higher than SBA 504.

NWFCU SBA 504 — per guarantor

$80,000

10% of $1.6M ÷ 2 guarantors (Andres + Enrique)

Lowest equity required. Covers full project — equipment + B&G construction in one loan. Family/investor loans (properly subordinated) count toward cash injection.

SBA 504 is the only path that covers everything in one structure

With B&G Construction selected at $465K–$540K, the CLF equipment-only path requires a separate $500K construction loan on top — making it the most expensive option when you include both. SBA 504 through NWFCU + BFG wraps everything into one package at 10% down. The $145K difference per guarantor between SBA 504 ($80K) and Kevin's model ($225K) is working capital that stays in the business for ramp-up, WDF supplies, repairs, and payroll buffer.

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 — B&G construction ($465–540K) NOT covered

Separate construction loan adds ~$6,000–6,500/mo — makes CLF most expensive all-in

Requires Electrolux equipment (locks you in)

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

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

NWFCU + BFG SBA 504 — Confirmed May 13

Lowest monthly payment (~$9,200/mo est. on $1.6M)

Lowest down payment ($160K — $80K/guarantor, 2 guarantors)

Covers full project (equipment + B&G construction)

Not tied to any equipment brand

SBA fixed rate on debenture portion (~5.77%)

Positive cash flow at 4T/day

Family/investor loans allowed as subordinated injection

Takes 60–90 days to close after package assembled

Highest total interest over 25 years (~$1.4M)

LLC structure must be finalized first (Andy + Enrique as owners)

Lenders: NWFCU (William Wilson 703-709-8900 x4734) + BFG (Gerald Baroudi 410-900-8271). Package ready to assemble once LLC structure confirmed.

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?

NWFCU + BFG SBA 504 — Status as of May 13, 2026

✓Lenders confirmed — NWFCU (William Wilson 703-709-8900 x4734) + Business Finance Group/BFG (Gerald Baroudi 410-900-8271). Both confirmed May 13.

✓G-4 visa resolved — Ricardo & Diana structured as subordinated lenders only, not guarantors. SBA 504 guarantors: Andres + Enrique only. Non-US partners receive loan repayments at agreed rate.

✓Full project coverage confirmed — equipment + B&G construction ($465–540K) covered in one SBA 504 structure. Total project ~$1.6M.

✓Family/investor loans allowed — subordinated loans from family count toward cash injection if properly structured (written note, behind SBA lien, disclosed on books).

⚠Pending — LLC structure — William Wilson waiting for Andy + Enrique confirmed as sole owners/guarantors. Once confirmed, loan package assembly begins.

⚠Pending — Lease to Gerald — Gerald Baroudi needs lease document for SBA review. Lease attorney currently reviewing.

✓ EL quote renewed — April 30 deadline resolved

Quote 297-5-8-26 issued May 8, 2026 (valid 30 days). The April 30 expiry is a non-issue. SBA 504 timeline (60–90 days) is compatible — equipment decision and quote locking can proceed in parallel with SBA package assembly.

Confidential — Summit Operations Group LLC — Updated May 17, 2026
All figures are estimates based on available documentation. Confirm all terms directly with lenders before committing.