Table of contents
Since before 2010, the unemployment rate in the United States has been gradually declining, indicating that more individuals are commuting to work and purchasing high-ticket goods such as automobiles. However, falling crude oil prices have slowed the development of the gas station industry. Two of the most essential elements for a gas station’s performance, according to IBISWorld, are:
The location of a gas station in relation to high-traffic regions is critical for increasing sales.
The product line
A gas station’s large client base will be satisfied by a growing, rotating, and diverse product variety.
Obtaining an SBA 7(a) loan through a bank, credit union, or another lending institution is an excellent method to achieve those success criteria. Any genuine business purpose, including a business mortgage, is eligible for an SBA 7(a) loan. Here are some examples of what you can do with the loan:
A new petrol station is being built.
A gas station’s new building may be costly, but the SBA 7 can pay any of the expenses (a). Pumps, underground tanks, POS systems, cold storage and kitchen equipment, parking spaces, and other items fall into this category.
A petrol station is being refinanced
The SBA 7(a) funding may be utilized to refinance an existing loan. The loan may only be utilized in this manner if certain criteria are met. Check out our website on Debt Refinancing for additional details.
Purchasing a gas station that already exists
Gas stations are purpose-built, therefore buying an empty lot rather than building one may be more cost-effective. Commercial real estate and land may be purchased under the SBA 7(a) program.
For further information, see SBA 7(a) for a Car Wash Lot
Borrowers with a number of SBA loan types, including the SBA 504 loan, may benefit from loans. The SBA 504 loan may provide greater sums, needs smaller down payments, and has lower interest rates than the SBA 7(a) loan. SBA 504 loans are really two separate loans, one funded by a Certified Development Company (CDC) and the other provided by a conventional lender.