Gas station lenders: who finances a station, and how to get approved

SBA 7(a) lenders. The most common route for buying an existing station and c-store, with or without the real estate. The SBA guarantees part of the loan, so lenders can offer longer terms. 7(a) loans go up to $5 million. Full detail in our SBA loans for gas stations guide.

SBA 504 lenders. For buying or building the real estate and long-life equipment, paired with a bank loan. 504 loans go up to $5M (up to $5.5M for qualifying manufacturing and energy projects), and special-purpose properties like stations often need a larger down payment than other buildings.

Banks and credit unions (conventional loans). Some local and regional banks lend on stations, usually with more money down and shorter terms than SBA loans, but a faster process.

Specialty and non-bank lenders. Lenders that focus on fuel and c-store deals. Often faster and more flexible, usually at a higher rate.

Seller financing. The seller carries part of the price as a note. It can close a gap that the bank will not cover, and it shows the lender the seller believes in the business.

Fuel supplier money. Branded suppliers sometimes offer incentives or loans for upgrades or rebranding, tied to a supply contract. Read the repayment terms carefully.

• Two to three years of tax returns and profit and loss statements for the station, plus monthly fuel gallons and inside sales.
• Your experience running a station, c-store or similar business. Many lenders want to see it, or a plan to hire it.
• Your down payment and reserves, and where the money comes from.
• Environmental clearance: a Phase I report, and sometimes more testing, before closing. See our due diligence checklist.
• The fuel supply agreement and any lease, because they shape the station’s income.
• An appraisal or business valuation that supports the price.

It depends on the program and the deal. SBA loans usually need less down than conventional bank loans; a conventional loan on a special-purpose property often needs much more. Seller financing can reduce the cash you need. Ask each lender for its numbers in writing.

SBA loans usually take longer than conventional or specialty loans because of the extra paperwork and environmental review. A complete package from the seller is the biggest thing that speeds any lender up.

• Starting the loan before you have the seller’s financials and fuel records.
• Skipping the environmental report until late in the deal.
• Applying with lenders who do not do station loans.
• Unexplained cash in your down payment.

We work with lenders who know gas stations and c-stores, including SBA lenders and business lenders with their own underwriting. Tell us about the deal by phone or through our contact page, and we will introduce you to lenders who fit it. Lenders also look for a clean package from the seller, and we prepare one for the listings we sell. Browse stations for sale, see how to buy a gas station, and choose a gas station lawyer before you sign.

Selling? Buyers with financing lined up can usually move faster. Read sell my gas station.