SBA- USDA GAS STATION LOANS
Loan Guidelines for Gas Station Property Financing
Location must be in a high traffic area with proof of car counts above 25,000 per day and/or one million gallons of fuel pumped per year. No start-ups will be considered.
Management must have at least five (5) years experience running a gas station of similar size.
Station must be at least three (3) years old with debt service coverage of at least 1.25x in the latest year, current interim period and at least one of the prior two years
Must have a convenience store 2,000 sq. ft. or larger.
Must have a diverse revenue stream, not just a gas station. Acceptable revenue drivers are a car wash, ATM machine, deli, lottery and cigarette sales as well as beer and wine in states where it is legal for a gas station to carry these items.
Ideally, the station will have a franchise component with a food brand or vendor like Subway or Dunkin Donuts.
Canopy and fuel tanks must be less than ten years old.
Maximum LTV of 65%
Loan Size: USDA: $250,000 – $5,000,000; SBA: $250,000 – $5,000,000
Eligible Locations: NATIONWIDE
Loan Term Amortization: USDA: Maximum 30 years; SBA: Maximum 25 years
Collateral: First position mortgage as certified by title search and
title policy on property. First security interest under
UCC-1 on all business assets is generally required.
Loan Escrows: The borrower may be required to contribute monthly to
an escrow account for real estate taxes and property
Appraisal: Complete summary appraisal required.
Environmental: Phase 1 with line and tank tightness tests required.
Eligible Principals: U.S. citizens, or permanent resident aliens. Majority
principal owners cannot be on probation or parole.
Recourse: Every loan will be personally guaranteed by any
shareholder with 20% or more ownership in