Retail, food and hospitality
Gas Station and Convenience Store Funding
Gas stations and convenience stores are among the more routinely financed small businesses. SBA 7(a) and 504 lenders, conventional real estate lenders, equipment lenders and working-capital lenders write them, with the real estate, the fuel contract and the inside sales each priced on its own.
What lenders weigh in a convenience stores & gas stations file
- Inside sales margin and its mix, because a store that earns on foodservice and beer is more durable than one that earns on cigarettes and lottery.
- Fuel gallons by month and the cents-per-gallon margin after the supplier's price, which tell the underwriter how much of the business is volume and how much is margin.
- The Phase I environmental report and the tank records, because a release can exceed the value of the site and the owner is commonly responsible for cleanup.
- The fuel supply agreement, its remaining term, its volume commitment and its assignment clause, since the contract follows the site and binds the buyer.
- Whether the operator owns the real estate or leases it, and how many years remain on the lease compared with the loan term.
- The owner's years in fuel retail and the source of the equity, which decide how much goodwill a lender is willing to finance.
What gets funded
- SBA 7(a) loans for a purchase, refinance or buildout: One long-term loan can cover the business, the real estate, the equipment and a working-capital line item. Lenders say yes because the guaranty absorbs the goodwill in the price and the station's daily sales are easy to verify.
- SBA 504 loans for owner-occupied real estate: A bank first lien plus a certified development company second on the land, building and fixed equipment of a station the owner operates. Suited to a build or a purchase where the real estate is most of the value.
- Conventional commercial real estate loans: Banks and non-bank lenders write experienced operators with meaningful equity, usually on a shorter amortization than SBA. The appraisal and the Phase I environmental report are the gating items.
- Equipment financing for dispensers, coolers and car wash systems: EMV dispenser upgrades, walk-in coolers, canopies, foodservice lines and car wash equipment financed against the equipment itself, commonly with a down payment and the owner's credit rather than a lien on the real estate.
- Working-capital lines and bank-statement loans: Fuel loads, inventory, a lottery bond, supplier deposits or a slow quarter, underwritten on deposits and card settlements. Faster than a term loan and sized to what the store's slowest months can carry.
- Seller notes and supplier incentives: A standby seller note bridges a price gap and often counts toward equity on an acquisition. Branded fuel suppliers commonly offer image and equipment incentives tied to a supply term, which can fund part of a canopy or signage refresh.
Convenience Stores & Gas Stations funding guides
- Buying a Convenience Store or Gas Station: SBA, Real Estate and Fuel Supply Financing — Buying a convenience store or gas station is usually financed with an SBA 7(a) or 504 loan, buyer equity and often a seller note. Inside sales, gallons, the real estate and the fuel contract set the value and the closing date.
- Gas Station and Convenience Store Loans: Buying, Building and Upgrading — Gas station loans are written by SBA 7(a) and 504 lenders, conventional real estate lenders and equipment lenders. The site, the tanks, the fuel contract and the inside sales margin decide which one, and how fast.
How MercFinancial places convenience stores & gas stations requests
MercFinancial is a commercial funding brokerage in Houston, not a lender, and it does not have a gas station program or a promise of approval. A c-store request starts with the file: the deed or lease, the fuel supply agreement, inside sales broken out from fuel, the tank and environmental records, the returns and bank statements, the owners' experience and credit, and what the money is for, whether a purchase, a build, a dispenser upgrade or a slow season. From there, the funding sources among MercFinancial's more than 160 whose credit policy allows fuel retail and the structure in question are identified, one file is placed with all of them, and the offers are compared.
Whether any product is available depends on the funding source, and when nothing fits yet, you are told that plainly along with what would change the answer. Stephanie, the lending assistant, pre-qualifies a request in a few minutes with a soft credit pull that does not affect your score, and a free call with a funding specialist is booked at the contact page.
Frequently asked questions
Can I get a loan to buy a gas station?
Yes. Gas station purchases are commonly financed with an SBA 7(a) loan, or a 504 loan when the real estate is most of the price, combined with buyer equity and often a standby seller note. The lender orders a business valuation and an appraisal, requires a Phase I environmental report and reviews the fuel supply agreement before closing. Approval and terms are the lender's decision.
Are gas stations eligible for SBA loans?
Yes. Gas stations and convenience stores are not on the SBA's list of ineligible businesses in 13 CFR 120.110, so 7(a) and 504 loans are available through any SBA lender whose own credit policy accepts fuel retail. Expect the lender to want inside sales broken out from fuel, the tank records, the supply contract, operating experience and an equity injection on a purchase.
Why do lenders require a Phase I environmental report?
Because the tanks are the risk. An underground storage tank release can cost more than the property is worth, and the site owner is commonly responsible for cleanup regardless of who caused it. A Phase I that comes back clean keeps the loan moving, while one that recommends sampling adds weeks and may change the price, the structure or the lender.
Can I finance EMV pump upgrades and new coolers?
Yes. Equipment lenders and lessors finance EMV-compliant dispensers, coolers, canopies, car wash systems and foodservice equipment against the equipment itself, usually with a down payment and the owner's credit rather than a lien on the real estate. Branded fuel suppliers often add image incentives tied to a supply term that can cover part of a canopy and signage refresh.
Can I get convenience store financing if I lease the site?
Yes, though the options narrow. Without owned real estate, SBA 7(a) lenders, equipment lenders and working-capital lenders carry the file, and the lease must run at least as long as the loan. Underwriters read the landlord's consent to a lender's access agreement, the lease assignment clause and the remaining term on the fuel supply contract before anything else.
Financing for this industry
- Business Funding — Eight programs, one file, 160+ lenders.
- Unsecured Business Loans — Term loans and lines without specific collateral, for businesses with steady deposits.
- Real Estate Funding — DSCR, fix and flip, construction, bridge and portfolio loans for investors.
Related industries
MercFinancial is a commercial funding brokerage, not a lender. Approval, loan amount, rate, term and funding are decided by the funding source on the strength of the file; nothing on this page is an offer or a commitment to lend.