SBA 504 Loans for Gas Stations
You only need to take a look around your local area to realize that gas stations are thriving today. In fact, the industry is at one of its highest points in history in terms of growth and profitability. Expected revenue for 2018 is $419 billion. Gas station owners can make use of SBA 504 loans to
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 QuotesCan Gas Stations Use SBA 504 Loans?
You only need to take a look around your local area to realize that gas stations are thriving today. In fact, the industry is at one of its highest points in history in terms of growth and profitability. Expected revenue for 2018 is $419 billion. Gas station owners can make use of SBA 504 loans to ride the wave of growth.
These loans are specifically designed for growing, healthy businesses. The funds can only be used to purchase real estate, to buy or construct buildings, or to purchase equipment. All three of those fall squarely into the most important considerations for any gas station owner – the land, the facility itself, and equipment like tanks, pumps, coolers, freezers, and more.
Note that you cannot use an SBA 504 loan for working capital, nor can you use it for equipment financing (only equipment purchasing). If you need capital, an SBA 7(a) loan might be a better fit.
We’re here to help you get the commercial financing you need. Contact SBA504.Loans today for a risk-free, no obligation consultation. Or, fill out the form below to apply with us today!
Related Questions
What are the eligibility requirements for SBA 504 loans for gas stations?
The eligibility requirements for SBA 504 loans for gas stations are similar to those for other SBA loans. Potential borrowers must have a good credit score, little existing debt, and a willingness to jump through a few hoops to qualify. Additionally, the funds can only be used to purchase real estate, to buy or construct buildings, or to purchase equipment. SBA 504 loans cannot be used for working capital or equipment financing.
For more information, please see the following sources:
What are the advantages of SBA 504 loans for gas stations?
SBA 504 loans offer many advantages for gas station owners. These loans are specifically designed for growing, healthy businesses and can be used to purchase real estate, to buy or construct buildings, or to purchase equipment. This makes them a great option for gas station owners who need to purchase land, build a facility, or buy equipment like tanks, pumps, coolers, and freezers. Additionally, SBA 504 loans can offer up to 80% LTV on gas station properties.
Source: SBA 504 Loans for Gas Stations
Source: Gas Station Loans
What are the disadvantages of SBA 504 loans for gas stations?
SBA 504 loans have a few disadvantages for gas station owners. First, they can only be used to purchase real estate, to buy or construct buildings, or to purchase equipment. This means that they cannot be used for working capital or equipment financing. Additionally, SBA 504 loans require potential borrowers to have a great credit score, little existing debt, and a willingness to jump through quite a few hoops to qualify. Source
What are the maximum loan amounts for SBA 504 loans for gas stations?
The maximum loan amount for an SBA 504 loan for a gas station is $5 million. This amount is for the purchase of real estate, construction of a building, or purchase of equipment. The loan can cover up to 80% of the total project cost. For more information, please see SBA 504 Loans for Gas Stations and Gas Station Loans.
What are the repayment terms for SBA 504 loans for gas stations?
SBA 504 loans for gas stations typically have a 10- or 20-year repayment term. The 10-year term is used for equipment purchases, while the 20-year term is used for real estate purchases. The interest rate is fixed for the life of the loan and is based on the current market rate. The loan is also secured by a lien on the property or equipment being purchased.
For more information, please see SBA 504 Loans for Gas Stations and Gas Station Loans.