SBA 504 Loans for Convenience Stores
Convenience stores, especially those set us as a gas station with a store attached that sells food, beverages, and sundries, have experienced a major surge in popularity in the US. Major chains like RaceTrac, QuikTrip, Wawa and others are expanding throughout the country, while competing with newer
Better Financing Starts with More Options$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1M offered by a Credit Union at 5.1%Click Here to Get QuotesThe Case for Convenience Stores to Use SBA 504 Loans
Convenience stores, especially those set us as a gas station with a store attached that sells food, beverages, and sundries, have experienced a major surge in popularity in the US. Major chains like RaceTrac, QuikTrip, Wawa and others are expanding throughout the country, while competing with newer chains, franchises, and single-location convenience stores. Whether you’re interested in building your first location or you want to expand to a new location, an SBA 504 loan can be a great solution
With an SBA 504 loan, you can purchase the land on which the convenience store will be built, and even pay for construction of the store. You can also use the funds for the purchase of the equipment you will need to serve your customers, such as fuel tanks, a monitoring system, coolers and freezers, food prep equipment, and more.
However, understand that these funds cannot be used as operating capital. If you need capital, there are alternative options, such as an SBA 7(a) loan, or even a conventional business loan.
We’re here to help you get the commercial financing you need. Simply fill out the form below for a risk-free consultation and a free SBA loan quote!
Related Questions
What are the eligibility requirements for an SBA 504 loan for a convenience store?
The eligibility requirements for an SBA 504 loan for a convenience store are similar to those of other SBA loan programs. Generally, the borrower must be a for-profit business, have a tangible net worth of less than $15 million, and have an average net income of less than $5 million over the past two years. Additionally, the business must be located in the United States and must be able to demonstrate a need for the loan. The loan must also be used for a business purpose, such as purchasing land, building a new store, or purchasing equipment.
For more information on SBA 504 loan eligibility requirements, please visit https://sba504.loans/sba-504-blog/sba-504-loan-eligibility-requirements/.
What are the advantages of an SBA 504 loan for a convenience store?
The SBA 504 loan program offers a number of advantages for convenience store owners. These include:
- Low down payment: The SBA 504 loan program requires a down payment of just 10%, which is much lower than most other loan programs.
- Long repayment terms: The SBA 504 loan program offers repayment terms of up to 25 years, which can help to reduce monthly payments.
- Fixed interest rates: The SBA 504 loan program offers fixed interest rates, which can help to protect borrowers from rising interest rates.
- No balloon payments: The SBA 504 loan program does not require balloon payments, which can help to reduce the risk of default.
For more information on the SBA 504 loan program, please visit https://sba504.loans.
What are the maximum loan amounts for an SBA 504 loan for a convenience store?
The maximum loan amount for an SBA 504 loan for a convenience store is $5 million. This loan can be used to purchase the land on which the convenience store will be built, and even pay for construction of the store. It can also be used for the purchase of the equipment you will need to serve your customers, such as fuel tanks, a monitoring system, coolers and freezers, food prep equipment, and more.
For more information, please visit SBA 504 Loans for Convenience Stores and Convenience Store Financing Options.
What are the interest rates for an SBA 504 loan for a convenience store?
The interest rate for an SBA 504 loan for a convenience store is typically fixed for the life of the loan and ranges from 3.5% to 4.5%. The rate is based on the current market rate for 5- and 10-year U.S. Treasury issues plus a spread set by the SBA. The spread is typically 2.25% to 2.75%.
For more information, please visit SBA 504 Loans for Convenience Stores and Convenience Store Financing Options.
What are the repayment terms for an SBA 504 loan for a convenience store?
The repayment terms for an SBA 504 loan for a convenience store depend on the loan amount and the type of loan. Generally, the loan term is 10 or 20 years for real estate and 10 years for equipment. The interest rate is fixed for the life of the loan and is based on current market rates. The SBA 504 loan also requires a down payment of 10-20%, depending on the loan amount.
For more information, please visit SBA 504 Loans for Convenience Stores and Convenience Store Financing Options.