Gas Station Loans
At Active Business Loans, we have the best selection of lenders that understand the special nuances of gas station and convenience store financing, so we have the best opportunities to achieve loans starting at $500,000. These lenders understand concerns with environmental issues and risks that may impact the business. We work hard to coordinate traditional loans and conventional financing whenever possible. If the conditions are right, we will also look at options for bridge loans when available.
Gas stations and gas station/convenience store combinations often need infusions of money. We can help provide working capital in the form of gas station loans, lines of credit, gas station financing, and other forms of commercial lending that can ease a cash crunch.
When it comes to acquisition of a gas station or convenience store, your options can be limited. Unfortunately, the vast majority of banks will not lend to gas stations/convenient stores. Generally, there are two paths you can take: Small Business Administration (SBA) or real estate only.
Small Business Administration
The Small Business Administration, or SBA, is not the direct lender but rather a government that agency sets guidelines for lenders.
When working through the SBA, the gas station facilities will be inspected for an appraisal and for environmental contamination. In most cases, these two inspections take up at least half of the wait-time during the loan process. This financing generally requires a 10% down payment. There will be a long-term loan, generally 25-30 years, with an interest rate 2 to 2.5% above the prime rate. An SBA is generally the best loan alternative because it is the most secured. If you’re interested in financing through the SBA, Active Business Loans will lead you through the complete process up to and including the loan closing.
Real Estate Only
If you cannot qualify for an SBA Loan, a real estate only loan would be a good alternative. This would be a private loan. There would be up to 70% loan-to-value with a 30-year amortization. The first 5 years is a fixed rate. The length of the loan is generally 30 years. Again, there would be an appraisal and an inspection for environmental contamination. Timewise, this process would take less time to process because it is not backed by the federal government.
We Can Help!
At Active Business Loans, we will examine your situation, learn about your goals, and lead you to the best lender. We handle our financing deals as high priority, so turnaround time is optimal. Generally, you can expect around a 60 to 90-day time slot.