Buy a station
The land, building and business together.
Loan program
Gas station loan terms, programs and requirements
Our gas station loans are secured by the station's real estate and can be used to buy, refinance or improve a station, with or without a store. Lenders size the loan from the station's cash flow and its appraised value, and they always review the environmental report. Below: the terms, who qualifies, and the documents to gather.
At a glance
The program terms.
Two loans, one limit: a property loan and a business loan, up to $5,000,000 per borrower combined.
| Term | What we offer | Notes |
|---|---|---|
| Two loans | Property loan and business loan | The property loan is secured by the real estate. The business loan covers the business. |
| Loan limit | Up to $5,000,000 per borrower | Property and business loans combined, across all properties. The usual split is about 2/3 property, 1/3 business. |
| Rate | 8% | Both loans. |
| Amortization | Property: 25 years. Business: 10 years. | 300 and 120 monthly payments. |
| Prepayment penalty | Property: 5% / 3% / 1% in years 1–3. Business: none. | Percent of the balance prepaid. No property penalty after year 3. |
| Guarantee | Personal guarantee | Required on both loans. |
| Brand | Branded or unbranded | The lender reads your fuel supply agreement either way. |
| Reports | Appraisal and Phase I | Phase II only if the Phase I calls for it. |
| Where | Nationwide | Based in Los Angeles, funding stations across the United States. |
Rates and terms depend on the property, the borrower and the market, and can change without notice. Subject to credit approval.
Who it's for
Who this program is for.
Owner-operators
Owners buying or refinancing the station they run.
Branded or unbranded
Major-brand and independent stations both qualify.
Gas with a market
A station with a convenience store. Car wash and service bays add income the lender can count.
Established businesses or start-ups
Experienced operators and first-time owners can apply. First-time owners should bring a business plan and a résumé.
Stations in good condition
The station should be in good physical and environmental condition. If it needs work, say so on the first call. Part of the loan may fund the fix.
Loan purposes
What the loan can pay for.
Refinance
Replace an existing loan or a seller note, or fund upgrades.
Build or rebuild
Tanks, canopy, dispensers, the store or a car wash.
Land
Buy the corner before you build.
Underwriting
How lenders underwrite a gas station.
A gas station is three businesses on one lot: fuel, the store, and sometimes a car wash or service bays. A lender looks at each one, then at the whole.
1. Fuel: gallons times margin
Fuel revenue looks huge, but lenders look past it. They look at gallons sold per month and your margin in cents per gallon, after card fees. That margin, not the pump price, is your fuel profit. Bring 2 to 3 years of monthly gallon reports. Swings between months are normal; a long slide is something to explain up front.
2. Inside sales: where the profit often is
Store sales carry a much higher margin than fuel. Lenders want monthly inside sales and your cost of goods, split from fuel. Beer and wine, prepared food and lottery commission all count when they are on the books. Lenders can only lend on income you report.
3. Other income
Car wash revenue, ATM fees, rent from a tenant such as a quick-service restaurant or repair bay, and EV charging. Each line needs its own records.
4. Cash flow and DSCR
The lender adds the profit lines and subtracts operating costs: payroll, utilities, insurance, property tax, repairs. That is net operating income. Divided by the yearly loan payment, it gives the debt service coverage ratio (DSCR). Above 1.0 means the station covers the payment; lenders require a cushion above that.
Estimate your property loan payment
5. Value and loan-to-value
An appraiser who knows service stations values the real estate, the business and the equipment. The loan is limited to a share of that value (LTV). The final loan is the lower of what the cash flow supports and what the value supports.
Branded vs unbranded
Branded or unbranded: what changes for the loan.
Both can be financed. The difference is the fuel supply agreement, and lenders read it closely.
Branded stations
You sell a major oil company's fuel under its sign, usually through a supply agreement with a jobber or the brand. These agreements often set image standards, volume commitments and rules on transfer. Some include incentives that must be repaid if the agreement ends early. A buyer needs to know whether the agreement transfers and what it costs.
Unbranded stations
You buy fuel on the open market. You keep more control of pricing and may earn a better margin, but you carry more price risk and have no brand support. Lenders will want to see that your margin held up over time.
Franchised brands
When SBA rules apply, a franchised brand must be eligible under the SBA's franchise directory. Compare SBA and private loans.
Environmental basics
What every borrower should know about the environmental review.
- A Phase I is required. It reviews records and the site for "recognized environmental conditions". Lenders generally want it done to the ASTM E1527-21 standard, which the EPA recognizes under its All Appropriate Inquiries rule (EPA).
- A Phase II may follow. If the Phase I flags a likely leak, a Phase II tests soil or groundwater.
- Your tank system matters. In California, single-walled tanks had to be permanently closed by December 31, 2025. Tanks still open after that are out of compliance and can be red-tagged (State Water Board). Have your tank install dates, permits and latest compliance inspection ready.
- Past leaks are not always fatal. A cleanup case the regulator has closed is very different from an open one.
Get ready
Document checklist.
Gather these before you apply. Also have tank records (install dates, permits, latest inspection), monthly gallons and inside sales, and any prior environmental reports.
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The process
From first call to funding.
- Call Shawn at 310-714-5616. A short interview about the station and your goal.
- Apply with the application and the documents above.
- Review: we look for the program that fits the property and your plan.
- Reports: the appraisal and Phase I are ordered.
- Close: you sign the loan documents, and funding goes through escrow.
FAQ
Program questions.
What are the rate and terms?
The property loan is 8% with a 25-year amortization. The business loan is 8% with a 10-year amortization. Together they can total up to $5,000,000 per borrower. Every loan is subject to underwriting. See your property loan payment.
Is there a prepayment penalty?
On the property loan, yes: 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. Price the business loan.
Do I need to sign a personal guarantee?
Yes. Both the property loan and the business loan require a personal guarantee from the owners.
What reports will the lender order?
An appraisal by an appraiser who knows service stations, and a Phase I environmental site assessment. If the Phase I flags a likely problem, a Phase II with soil or groundwater samples may follow. Read the Phase I guide.
Tell Shawn about your station.
Buying, refinancing or building, the first step is the same: a short call about the property, the numbers and your timeline.