SBA loans for gas stations and convenience stores

Can you get an SBA loan to buy a gas station?

Yes. Gas stations and convenience stores are eligible for SBA financing, and buying an existing station is one of the most common reasons owners in this industry apply. Most purchases use a business acquisition loan under the 7(a) program.

An SBA loan can pay for:

• The land, building, canopy and fuel system
• Goodwill, inventory and equipment that come with the business
• Building a new station, or tearing down and rebuilding an old one
• Replacing underground storage tanks, dispensers and point-of-sale systems
• Rebranding and image upgrades a fuel brand requires
• Adding a car wash, kitchen or quick-service restaurant
• Refinancing existing debt and adding working capital, including fuel inventory

You can buy a station with or without the real estate. If you lease the site, lenders generally want the lease, including renewal options, to run at least as long as the loan.

How much down payment do you need for a gas station SBA loan?

The SBA minimum depends on the program and how long your business has operated:

• 7(a) purchase or start-up: at least 10% of the project cost. On a purchase, a seller note on full standby can cover up to half of it.
• 504 loan, established business: at least 15%, because gas stations, like hotels, are generally treated as special-purpose property.
• 504 loan, new business: at least 20% when the business has operated for 2 years or less.

A 504 loan gives you a fixed rate on the SBA portion and a term of up to 25 years, which suits land and buildings. A 7(a) loan is more flexible when the deal includes goodwill, inventory and working capital. Since July 4, 2026, a business can combine the two for up to $10 million.

Why do gas station loans need an environmental review?

Fuel stored underground can leak, and contamination can be expensive to clean up and can make a property hard to sell or refinance. The SBA treats gas stations as an environmentally sensitive industry, so lenders typically require an environmental review of the site before closing.

Definition

Environmental site assessment: A review of a property’s current and past uses to spot contamination risk. A Phase I relies on records, interviews and a site visit; a Phase II adds soil or groundwater testing.

Expect lenders to ask for:

• A Phase I environmental site assessment, and often more testing if it finds concerns
• Records for each underground storage tank: age, construction, leak detection and testing history
• Proof that the tanks are registered and insured or covered by a state cleanup fund, where required
• Details of any open or closed cleanup cases on the site

What do lenders look for in a gas station loan?

Lenders underwrite the station’s sales mix, its records and you as the operator. Expect them to focus on:

1. Inside-store sales and margins. Fuel margins are thin and move with prices, so many lenders give more weight to in-store sales, which usually earn higher margins.
2. Fuel volume. Gallons sold each month and the trend over time, verified with supplier statements.
3. Verified income. Lenders generally rely on income reported on tax returns and compare it with sales tax filings, point-of-sale reports and supplier records. Unreported cash sales won’t count.
4. Cash flow. For a first-time purchase, the SBA requires debt service coverage of at least 1.25x.
5. Experience. Running a convenience store, fuel site or similar retail business, or a plan to keep experienced managers.
6. Gaming income. If the store has gaming machines, lenders check that gambling revenue stays within the SBA’s limit for eligible businesses.
7. Ownership and guarantees. Since March 1, 2026, all owners must be U.S. citizens or nationals. Owners of 20% or more personally guarantee the loan.

Purchases priced at $3 million or more also need a Quality of Earnings report, in which an accounting firm verifies that the seller’s reported earnings are real and repeatable.

How do fuel supply agreements affect an SBA loan?

Most stations buy fuel under a supply agreement with a branded supplier or a distributor, often called a jobber. Lenders read these agreements closely because they shape the station’s margins and its freedom to change suppliers.

Lenders typically check:

• The remaining term and any renewal rights
• Incentive money, such as image or rebranding funds, that must be repaid if the station changes brands or is sold early
• Required image upgrades and who pays for them
• Whether the agreement transfers to you on a purchase

Some brand arrangements, including convenience-store franchises, count as franchises under SBA rules. If yours does, the brand must be listed in the SBA Franchise Directory. See SBA franchise loans.

Can an SBA loan pay for a car wash or food service at a gas station?

Yes. Many owners use SBA financing to add a car wash, a kitchen or a quick-service restaurant, which can bring in higher-margin sales. Lenders look for realistic projections for the new revenue, contractor bids and any franchise approvals.

If you lease part of the property to another business, such as a restaurant tenant, your business must still occupy at least 51% of an existing building, or 60% of a newly built one. See SBA commercial real estate loans.

How long can a gas station SBA loan be?

Terms depend on what the money pays for:

What the loan pays for	Maximum term
Land and buildings	25 years under 7(a), plus construction, or 25 years under 504
Dispensers, car wash and store equipment	10 years, or longer when the equipment’s useful life supports it
Goodwill, inventory and working capital	10 years

When one loan covers several uses, the lender blends the terms. A purchase is repaid over up to 10 years, with the real estate share stretching longer. Because gas stations are special-purpose property, a purchase where real estate makes up at least 85% of the project cost can use the full 25 years term.

How do you find lenders that fund gas stations?

Gas station lending is specialized. Some lenders finance stations regularly and know how to underwrite fuel volumes, supply agreements and environmental reports; others rarely lend on them.

SBA Loan Connect ranks lenders using the SBA’s public 7(a) and 504 loan records by NAICS code, so you can see which lenders actually fund gas stations and convenience stores like yours before you apply. Lenders we partner with are labeled as partners. See how we rank lenders.