Top Banks for Gas Station SBA Loans

Last update: Aug 28, 2022

 

find me a gas Station lender

Thousands of new gas stations with convenience stores are built across America every year or come up for sale. Over 99% of gas stations are independently owned, not by big oil companies. While profit margins are lower on gas, the margins on other items sold inside the convenience store side of the station are very healthy.

Over time, a new gas station builds a loyal following from nearby residences and businesses because of its convenience. Gas stations located on busy highways can also do very well.

An SBA loan can help get your gas station off the ground or expand an existing station. In addition, it can be used to buy inventory, add pumps, refinance debt, purchase a competitor’s gas station, and many other purposes.

 

Benefits of owning a gas station

Along with a high earning potential, the biggest benefit of owning a gas station is the personal satisfaction of owning your own business. You set your operating hours, decide how many employees to hire, set your prices, and enjoy all the other benefits of owning your own company.

Owning a gas station also means you’ll make a nice living. You decide how big you want your business to grow, when to hire additional workers, and whether you want to open additional stations.

 

How to obtain financing to open, expand, or buy a gas station

If you’re looking for gas station financing, consider applying for an SBA loan. The various loan programs offered by the Small Business Administration can help provide the funding you need to set up your business.

The SBA is a government agency that doesn’t lend you the money directly. Instead, it guarantees a significant portion of your loan. That lowers the risk profile for SBA’s lending partners, which include conventional banks and financial institutions, so they’re more willing to approve loan requests.

You also must put significantly less cash or equity down to qualify with an SBA loan. And, with an SBA loan, no covenants or collateral is required.

The most common SBA gas station loans include the SBA 7(a) and Express loans.

 

SBA 7(a) loan for starting or buying a gas station

The 7(a) is the preferred SBA loan for gas stations. You can use the funds made available through this program to purchase inventory, expand your current location, or even buy a competitor’s station.

If you own an existing gas station and want to buy out a partner, you can also utilize the funds from an SBA 7(a) loan for that purpose.

The maximum SBA loan for a gas station is $5 million and is generally repaid with monthly payments that include interest.

The payment stays the same for fixed-rate loans since the interest rate is locked in. However, for variable rate loans, it’s up to the lender to request a different payment amount if the interest rate changes.

 

SBA Express Loans for gas stations

SBA Express Loans are a part of the agency’s 7(a) loan program. Up to $500,000 can be borrowed under an Express loan. The approval times are typically much faster for these loans.

Express loans over $25,000 have a collateral requirement. The SBA usually responds to Express loan applications within 36 hours.

The lenders ultimately make all eligibility and credit decisions. The market prime rate plus 4.5-6% interest is applied with repayment terms of up to 10 years.

 

How to apply for an SBA gas station loan

Access our network of SBA lenders that includes leading nationwide banks, credit unions, and other financial institutions. Our lending partners are experienced in handling applications for gas stations, so they will diligently pursue your opportunity.

 

There are countless SBA approved lenders that are ready to offer you a gas station SBA loan. These are just some of the top lenders:

RankBankCityState# of LoansAvg Loan $Avg Interest
1Celtic BankSalt Lake CityUT89$2,107,5365.7%
2First IC BankDoravilleGA85$1,445,2244.5%
3Wallis BankWallisTX72$1,849,5195.0%
4Readycap Lending, LLCBerkeley HeightsNJ61$1,769,8235.1%
5Commonwealth Business BankLos AngelesCA59$1,684,1024.9%
6Byline BankChicagoIL51$1,238,2125.9%
7Open BankLos AngelesCA48$1,844,4484.9%
8Pacific City BankLos AngelesCA40$2,102,3004.7%
9Citizens BankElizabethtonTN38$1,280,5165.3%
10Enterprise Bank & TrustClaytonMO28$1,463,4045.3%

 

  find me a gas Station lender