FAQ
Gas station loan questions, answered
Straight answers to the questions station owners and buyers ask us most. Each answer starts with the short version. If your question is not here, call Shawn at 310-714-5616.
Qualifying
How hard is it to get a gas station loan?
Harder than most commercial loans, but very doable with the right file. Lenders worry about environmental risk, the single-use building, and income split between fuel and the store. Clean books, a clean Phase I, a readable fuel supply agreement and real reserves answer most of those worries before they are asked.
How much do I need down to buy a gas station?
It depends on the loan type, the property and your experience. The lender lends up to a set loan-to-value, and you fund the rest, sometimes with help from a seller note. Our property loan calculator shows the monthly payment for any loan amount.
Can I get a gas station loan with bad credit?
Credit matters, but it is not the only thing. A strong station with good cash flow, solid collateral and a clear explanation of past credit problems can still qualify. Tell Shawn up front; surprises in underwriting cost more than honesty on the first call.
I have never owned a gas station. Can I still get a loan?
Possibly. Both established businesses and start-ups can apply. Lenders want to see retail or management experience, a realistic plan and reserves. A seller who trains you for a few weeks after closing makes a first-time buyer a much better risk.
How much can I borrow?
Up to $5,000,000 per borrower, with the property loan and the business loan combined, across all your properties. The usual split is about two thirds property and one third business. The final amount depends on the station's cash flow, the appraisal and underwriting. Plan both loans.
Do you lend outside Los Angeles?
Yes. We are based in Los Angeles and fund gas stations, convenience stores and car washes nationwide.
Environmental and tanks
Why do lenders require a Phase I for a gas station?
Because fuel is stored underground, and a leak can make the land worth less and cost a lot to clean up. A Phase I reviews records and the site for signs of contamination. Lenders generally want it done to the ASTM E1527-21 standard, which the EPA accepts under its All Appropriate Inquiries rule (EPA).
What happens if the Phase I finds something?
A finding is not an automatic no. The next step is often a Phase II with soil or groundwater samples. Then the question is size and responsibility: how bad is it, who is paying to clean it, and is there a regulator's closure letter? Many stations with past leaks get financed. Read the full guide.
My station still has single-walled tanks. Can I get a loan?
Not until the tanks are dealt with. California required single-walled tanks to be permanently closed by December 31, 2025. Systems still open after that are out of compliance, cannot be operated, and can be red-tagged, with penalties of $500 to $5,000 per tank per day (State Water Board).
What is the UST Cleanup Fund?
A California fund that helps petroleum tank owners meet financial responsibility rules and reimburses eligible cleanup costs for leaking tanks (State Water Board). If your site has an open cleanup case, tell the lender whether the Fund is paying, because that changes the risk.
Terms and payments
What are your rates?
8% on both the property loan and the business loan. Every loan is subject to underwriting and approval. See your payment.
How long can I take to pay it back?
The property loan amortizes over 25 years (300 monthly payments). The business loan amortizes over 10 years (120 monthly payments).
Is there a prepayment penalty?
The property loan has one: 5% of the balance prepaid in year 1, 3% in year 2 and 1% in year 3, then none. The business loan has no prepayment penalty.
Do I need a personal guarantee?
Yes, on both the property loan and the business loan.
Process
How long does a gas station loan take?
The appraisal and the environmental report usually take the longest, so we order them as early as we can. A complete document package is the fastest path to closing.
What documents do I need?
Tax returns (3 years personal and business), current financial statements, monthly gallons and inside sales, your fuel supply or franchise agreement, leases, an equipment list and proof of your down payment. The full list is on the loan program page.
Do I work with a call center?
No. You work directly with Shawn Rabban, 7 days a week, 9am to 7pm. Call, or send a short message.
Brands, franchises and SBA
Do you finance branded and unbranded stations?
Yes. Either way, the lender will read your fuel supply agreement. It can affect your margin, your obligations, and whether the agreement can transfer when you sell.
Should I use an SBA loan or a private loan?
It depends on your ownership, your brand, your timeline and the environmental picture. Our SBA vs. private loan guide explains when each one fits.
My station is franchised. Does that matter?
It can. For SBA loans, the brand must be eligible under the SBA's franchise directory. Have your franchise or supply agreement ready either way.
The future of fuel
Will lenders still finance gas stations as electric cars grow?
Yes, but they look harder at how much of the profit comes from fuel. Stations with strong inside sales, food, a car wash or tenant rent are easier to finance. Adding EV chargers can be part of the plan.
Can I finance EV chargers?
EV chargers can be part of a refinance or construction budget. Budget for the power upgrade, which is often the biggest cost.
Still have a question? Ask Shawn.
Buying, refinancing or building, the first step is the same: a short call about the property, the numbers and your timeline.