SBA lenders approved 1,327 7(a) loans to gas stations with convenience stores between October 2023 and June 2026, about $2.26 billion from 213 lenders. The median loan was $1,325,000, against a national median of $150,300, and 60.2% of loans were $1 million or more. The median term was 300 months, because most loans finance the land and building. A third of loans, 33.5%, bought a station, against 10.4% nationally. Lenders decide on environmental condition, the fuel supply agreement, and how much of the reported income the tax returns support.
| Measure | Gasoline Stations with Convenience Stores | All industries |
|---|---|---|
| SBA 7(a) loans approved | 1,327 | 162,355 |
| Median loan | $1,325,000 | $150,300 |
| Middle half of loans | $590,350 – $2,476,450 | $50,000 – $500,000 |
| Loans of $1 million or more | 60.2% | 12.9% |
| Median rate at approval | 9.5% | 10.25% |
| Middle half of rates | 8.5% – 10.25% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 445 (33.5%) | 16,849 (10.4%) |
| Median acquisition loan | $1,682,000 | $693,000 |
| Lenders that made these loans | 213 | 1,648 |
| SBA 504 loans (real estate, equipment) | 261 | 16,714 |
Approvals FY2024 – FY2026 to date (1 Oct 2023 – 30 Jun 2026), cancelled loans excluded. Source: SBA 7(a) and 504 FOIA loan records, as of June 30, 2026.
- SBA 7(a) loans approved
- 1,327 (Oct 2023 – Jun 2026)
- Median loan
- $1,325,000 (national $150,300)
- Median rate at approval
- 9.5% (national 10.25%)
- Median term
- 300 months
- Acquisitions
- 445 loans (33.5%), median $1,682,000
- SBA 504
- 261 loans, median $1,444,000
Large loans, long terms, and a third of them acquisitions
Gas stations with convenience stores (NAICS 457110) sell fuel and run a store under the same canopy. From FY2024 through June 2026 SBA lenders approved 1,327 7(a) loans to them, worth $2,255,141,900, from 213 lenders. Almost every figure sits far from the national one, and all of the differences point the same way: this is property lending.
| Figure | Gas stations with c-stores | National | What it says |
|---|---|---|---|
| Median loan | $1,325,000 | $150,300 | Land, building, tanks and pumps, not working capital |
| Middle half of loans | $590,350 to $2,476,450 | Even the smaller loans are large | |
| 90th percentile | $3,925,800 | The top tenth approaches the $5 million 7(a) ceiling | |
| Loans of $1 million or more | 799 (60.2%) | Most loans | |
| Median rate | 9.5% (middle half 8.5% to 10.25%) | 10.25% | Below national because the loans are large |
| Fixed-rate share | 6.5% | Nearly all float, for 25 years | |
| Median term | 300 months | The real estate maturity | |
| Acquisitions | 445 (33.5%), median $1,682,000 at 9.25% | 10.4% of loans | Stations change hands often |
| Franchises | 33.6% of loans | Brand and franchise agreements are common | |
| Start-ups | 9.9% of loans | New-build and newly opened sites | |
| SBA Express | 9.7% of loans | Rare: the loans are far above the Express limit | |
| SBA 504 | 261 loans, median $1,444,000 | The alternative for property |
Why the median term is 25 years, and what that does to the rate
7(a) maturities run up to 25 years for real estate, up to 10 years for equipment (15 if its useful life supports it) and up to 10 years for goodwill and working capital. A loan that finances a mix is given a blended maturity weighted by what it buys. A median of 300 months means the typical station loan is predominantly real estate. See SBA blended maturity.
Loan size sets the ceiling on price. SBA caps variable 7(a) rates at the base rate plus 3% above $350,000, the lowest tier, and the middle half of station loans starts well above that line. That is why the industry median of 9.5% is below the national 10.25%, and why acquisitions, larger still, priced at 9.25%. The other side of it: only 6.5% of loans were fixed, so most station owners carry a floating rate on a loan that can run 25 years. See SBA loan rates and fixed versus variable rates.
A long loan also carries SBA's prepayment rule: on 7(a) loans of 15 years or more, prepaying more than 25% in any of the first three years costs 5% of the prepaid amount in year one, 3% in year two and 1% in year three. An owner who expects to sell or refinance early should plan around it. See SBA prepayment penalty.
The environmental file comes before the credit decision
Underground storage tanks are what make a station different from any other small-box retail property. A leaking tank can create a cleanup liability larger than the loan, and that liability can stay with the property through a sale. SBA requires an environmental investigation before it will guarantee a loan secured by commercial real estate, and for a fuel site lenders expect at least a Phase I environmental site assessment and often a Phase II with soil or groundwater sampling.
What the lender reads in that file:
- Tank age, construction and registration. Older single-wall tanks draw more questions than double-wall tanks with continuous monitoring.
- Leak detection and compliance records. Monthly monitoring results, tightness tests and state inspection reports show whether the site has been run carefully.
- Past releases. A closed release with a regulatory no-further-action letter is a different conversation from an open one.
- State tank funds and insurance. Many states run cleanup funds, and operators carry pollution liability coverage. The lender will ask what is in place and what it covers.
On a station loan, a clean environmental report is a condition of the loan, not a formality. Start it early.
Two businesses under one canopy
Fuel brings the traffic; the store usually earns the margin. Fuel revenue is large and its margin per gallon moves with wholesale prices, so a station's sales can swing widely from year to year while its profit barely changes. Underwriters look through revenue to gross profit by line.
| Income line | How an underwriter reads it |
|---|---|
| Fuel sales | Gallons and margin per gallon matter more than revenue, which follows wholesale prices |
| Inside store sales | Usually the steadier and higher-margin line; tobacco, beverages and prepared food |
| Lottery and money orders | Pass-through collections; only the commission is income |
| Brand incentives and rebates | Often repayable if the station changes brand or is sold early; read as contingent |
| Car wash, ATM and rent from tenants | Counted if documented and recurring |
The fuel supply agreement deserves its own reading. Branded stations buy under an agreement with a supplier or jobber that sets term, volume commitments and image requirements, and many include incentive money that must be repaid if the station debrands or the agreement ends early. A lender treats that repayment as a potential liability, and in an acquisition it needs the supplier's consent to the transfer. With 33.6% of loans going to franchises, brand and franchise agreements are a routine part of the file. See franchise resale financing.
Stations handle a lot of cash. Lenders credit only the income that the tax returns report; cash that never reached the returns does not service a loan, however real it was. SBA requires debt service coverage of at least 1.15x, and 1.0x globally once the owners are included.
Buying a station with an SBA loan
445 loans, 33.5% of the total and more than three times the national share of 10.4%, financed a change of ownership, at a median of $1,682,000 and a median rate of 9.25%. Stations trade often because they are sold as property with a business attached, and buyers who already run stations add more. See financing a gas station acquisition.
- Equity. At least 10% of total project costs. A seller note counts toward up to half of it only on full standby, with no principal or interest, for the life of the SBA loan.
- Two valuations. An appraisal of the real estate, and an independent business valuation where the amount financed less appraised real estate and equipment exceeds $250,000. The loan for the purchase cannot exceed the valuation.
- No earnout to the seller, and the seller may consult for up to 12 months, or up to 24 months under SOP 50 10 8.1 from 1 October 2026.
- From 1 October 2026, financial due diligence on every change of ownership, and a quality of earnings report where the purchase is $3 million or more excluding real estate. Because so much of a station's price is property, many station deals fall under that threshold even when the total is higher. The deal must show 1.25x coverage on historical results, and the non-real-estate share amortizes over no more than 10 years.
Stations are special-purpose property, which also shapes the 504 alternative: 261 504 loans went to the industry, at a median of $1,444,000. A 504 structure is typically 50% from a bank, 40% from the CDC and 10% from the borrower, rising to 15% for a new business or special-purpose property and 20% for both. A 7(a) can finance the business, fuel equipment and working capital in one loan. See SBA 7(a) vs 504 and acquisitions that include real estate.
Preparing a station's SBA file
Start with the standard SBA list: business tax returns for 2–3 years, a P&L and balance sheet with a year-to-date P&L through last month-end, a debt schedule with copies of notes being refinanced, and personal tax returns and a personal financial statement for each owner of 20% or more. For a station, add:
- Monthly fuel gallons and fuel margin for the last two full years
- A P&L split between fuel and inside sales
- The fuel supply agreement, brand agreement and any incentive repayment schedule
- Existing environmental reports, tank registration and leak detection records
- Lottery settlement statements, and licenses for tobacco and, where sold, alcohol
- For an acquisition, the letter of intent and the target's latest full year of figures, never an older year
Stations that have bridged slow months with merchant cash advances must deal with them first: SBA will not refinance an active advance, and from 1 October 2026 an advance becomes eligible only once converted to a term loan that has amortized for at least 24 months with no new advance since. See refinancing cash advances for gas stations.
Transparent builds the full lender package, financing model, lender presentation, blind teaser and underwriting memo, in a day once the documents are in, and takes it to the 278 lenders in its book that write SBA 7(a) and 504. 213 lenders approved a station loan in the period; knowing which of them take fuel sites and at what size is much of the work. On SBA loans the lender pays Transparent, not the borrower. For stores without fuel, see convenience retailers.
Common questions
- How large is a typical SBA loan for a gas station?
- Large. The median 7(a) loan to gas stations with convenience stores from October 2023 to June 2026 was $1,325,000, with the middle half between $590,350 and $2,476,450, and 60.2% of loans were $1 million or more.
- Why are gas station SBA loans 25 years long?
- Because most of the money buys land and buildings, which 7(a) can finance over up to 25 years. The median term in the industry was 300 months. Equipment, goodwill and working capital carry shorter maturities, and a mixed loan gets a blended term.
- Does a gas station need a Phase II environmental report for an SBA loan?
- Not always, but often. SBA requires an environmental investigation on commercial real estate collateral, and for fuel sites lenders expect at least a Phase I. Findings about tanks, releases or compliance commonly lead to a Phase II with sampling.
- Can I buy a gas station with 10% down using an SBA loan?
- SBA's minimum equity for a change of ownership is 10% of total project costs, and a seller note on full standby for the life of the loan can cover up to half of it. Lenders may ask for more based on the site, the environmental file and your operating experience.
- Does cash income count when a lender reviews a gas station?
- Only what the tax returns report. Lenders credit reported income, and treat lottery and money order collections as pass-through, counting only the commission.
- What happens to brand incentives if I sell or rebrand the station?
- Many fuel supply agreements require incentive money to be repaid if the station debrands or the agreement ends early. Lenders read that as a potential liability, and a buyer needs the supplier's consent to take over the agreement.