Gas Station Feasibility Study in Arizona

Arizona fuel loans: million-dollar tickets, mostly branded

Arizona gas station loans are large. The median of 119 SBA approvals from FY2017 to FY2026 was $1.2 million, which is 1.17x the class median nationwide; Arizona's quartiles span $597,500 to $2.1 million. Arizona approved $185.5 million in the class over the period and ranks 15 of 53 among states. The class is lighter in Arizona than nationally, with a 0.79x location quotient, and it stands 12 of 39 among Arizona asset classes. Arizona's station median, though above the class, is not far enough from the Arizona book as a whole to count as distinct under our test, and neither floor is either, so the story here is structure and lenders.

Franchise or branded operators account for 56.3% of Arizona loans. SBA 7(a) carries 103 approvals and SBA 504 16. Celtic Bank Corporation is by far the largest Arizona holder, with 26 loans worth $50.6 million, followed by Alerus Financial, National Association with 16 worth $14.6 million, Readycap Lending, LLC with 7 worth $11.4 million and Arizona Financial Credit Union with 6. The Mortgage Capital Development Corporation, with 8, is the main Arizona 504 holder. Volume peaked at 24 approvals worth $40.4 million in FY2021 and fell to 6 in FY2022.

Arizona closing and credit floors

In Arizona, no fewer than 12.2% of FY2017 to FY2024 station approvals ended cancelled, and 14.3% when unfunded loans are added in. With tickets this large, a cancelled approval often traces back to an environmental report, a fuel supply agreement or an appraisal that did not support the price. After funding, Arizona station loans have held: none of the 59 Arizona station loans funded in the FY2017 to FY2021 years shows a charge-off, a 0.00% floor, with Arizona's five-year rate at 0.00% too. Those Arizona loans are still repaying, so the floor can only rise.

What an Arizona gas station study has to test

Maricopa County holds 53 approvals and Mohave 23, followed by Cochise at 7 and Pinal and Yavapai at 6 each, so counties beyond Maricopa make up a real part of the Arizona record. A feasibility study must measure traffic and fuel gallons against competing stations, inside sales potential, and the terms of the fuel supply contract. Cost must cover tanks, canopy, dispensers and any convenience store build-out at current bids. The coverage ratio should hold at the real loan, which at the upper quartile reaches $2.1 million. The Arizona appraisal must divide property value from business value and reflect environmental condition. A data caution: the code records the borrower's industry, so Arizona travel centers and truck stops sit in the same bucket as ordinary stations, and because electric vehicle charging is absent from the 2022 NAICS index, no Arizona charging project can be traced here.