Guide
Gas Station Financing: How Buyers Fund Acquisitions
Most gas station purchases are financed with SBA 7(a) loans (business-heavy deals), SBA 504 loans (real-estate-heavy deals), conventional commercial loans, or seller financing — often in combination. Expect 10–20% down and lender scrutiny of financials, environmental reports, and the fuel supply agreement.
SBA 7(a) loans
The workhorse of gas station finance. 7(a) loans fund business acquisitions including goodwill, with terms up to 10 years (25 when real estate is the largest component) and down payments commonly 10–20%. Lenders experienced in fuel retail move materially faster than generalists.
SBA 504 loans
For real-estate-heavy purchases, 504 pairs a bank first mortgage with a CDC debenture, delivering long-term fixed rates and down payments as low as 10–15%. The real estate must be majority owner-occupied — which an operating station satisfies.
Conventional and seller financing
Experienced multi-site operators with strong balance sheets access conventional commercial loans at competitive terms without SBA guarantees. Seller financing frequently bridges gaps — a seller note of 10–20% signals seller confidence and can complete a capital stack.
What lenders require
Prepare a complete package early — it's the single biggest accelerator of a fuel-retail loan.
- 3 years of business tax returns and P&Ls
- Personal financial statement and resume
- Phase I environmental report (lender-ordered)
- Fuel supply agreement and lease/title documents
- Business plan with projections for the site
Reviewed by the Station Brokers team — fuel-retail transaction specialists. This guide is general information, not legal, tax, or investment advice.