Gas station loans: SBA rates and eligibility
Gas Stations · NAICS 457110 (formerly 447110) · Program that usually fits: 7(a) or 504
A gas station loan is usually a real-estate loan with a convenience store attached. Because the property, the pumps and the store are bought together, SBA 7(a) and 504 both fit, and the choice comes down to whether you want one loan or a lower fixed rate on the real estate. Environmental due diligence is the step that trips up most deals, so budget for a Phase I report early.
Who qualifies
Owner-operators buying an existing station are the typical borrower. Lenders want to see fuel supply agreements, three years of tax returns from the seller, and proof that the underground storage tanks meet current rules. Absentee ownership is harder to finance under SBA rules, which require the owner to run the business.
Which SBA program fits
504 for the property
A 504 loan funds up to 40% of the real estate at a fixed rate, the bank funds 50%, and you put in 10%. It's the lowest-cost way to buy the station itself.
7(a) for everything together
One 7(a) loan can cover the real estate, the business, inventory and working capital, up to $5 million, with a 25-year term when real estate is the majority of the project.
7(a) for business-only purchases
If you're buying the operation and leasing the site, 7(a) is the only option, usually on a 10-year term.
What borrowers use the money for
- Buying the station, land and building
- Buying the business and inventory when the real estate is leased
- Replacing underground tanks, pumps and canopies
- Adding or renovating a convenience store or car wash
- Working capital for fuel inventory
Typical loan amounts, down payment and terms
Gas station purchases commonly range from $750,000 to $4 million. Expect a 10% to 15% equity injection on a 504 project and 10% to 20% on a 7(a) business purchase. Environmental reports, a tank-tightness test and a fuel supply contract review are standard conditions before closing.
Example: a $1,500,000 loan
At today's maximum variable 7(a) rate of 10.00% over 25 years, the payment would be about $13,631 a month. Most well-qualified borrowers get a lower rate. On a 504 project, the SBA-backed 40% would be fixed at 6.97% (October 2026, 25-year). Try your own numbers.
Today's rate caps
These are the SBA's maximum 7(a) rates with prime at 7.00%. See current SBA 7(a) rates and SBA 504 rates for the full picture.
| Loan amount | Maximum spread | Maximum variable rate today |
|---|---|---|
| $50,000 or less | Prime + 6.5 | 13.50% |
| $50,001 to $250,000 | Prime + 6.0 | 13.00% |
| $250,001 to $350,000 | Prime + 4.5 | 11.50% |
| Over $350,000 | Prime + 3.0 | 10.00% |
Related industries and lenders
Related industries
SBA lenders active nationwide
Questions about gas station loans
Can I get an SBA loan to buy a gas station?
Yes. Gas stations are eligible for both 7(a) and 504 loans as long as you'll operate the business yourself and the site passes environmental review. Most purchases include the real estate, which is why 25-year terms are common.
How much down payment do I need for a gas station loan?
Plan on 10% for a 504 real-estate project and 10% to 20% for a 7(a) purchase that includes the business. Lenders ask for more when the station has declining fuel volume or the buyer has no fuel-retail experience.
What is the environmental requirement for an SBA gas station loan?
The SBA requires an environmental investigation on any property with underground fuel tanks, which means at least a Phase I report and usually a Phase II with soil sampling. A clean report, or an approved cleanup plan, is a closing condition.
What interest rate will I get on a gas station loan?
On a 7(a) loan over $350,000 the SBA cap is prime plus 3, or 10.00% today. A 504 loan's SBA portion priced in October 2026 at 6.97% fixed for 25 years, with the bank setting its own rate on its half.
Does the SBA finance the convenience store inventory too?
Yes. A 7(a) loan can include fuel and store inventory and working capital alongside the real estate. A 504 loan can't, so 504 buyers usually pair it with a separate line of credit for inventory.
Sources: SBA 7(a) terms, conditions and maximum variable rates; Federal Reserve H.15 selected interest rates (bank prime loan rate); October 2026 SBA 504 debenture pricing, as published by CDCs; SBA FOIA 7(a) and 504 loan-level data.