Gas Station Feasibility Study in Indiana

Indiana fuel loans come in under the national ticket

Indiana's gas station borrowers take a smaller loan than the class does nationally, and on our screen that is the cell's defining trait. The typical Indiana fuel loan was $762,500, or 0.72x the class median countrywide, and against both Indiana's lending in every class and gas stations nationally the gap exceeds our distinctness margin. Indiana ranks 11 of 53 states for gas station and truck stop loans, with 146 approvals worth $131.0 million from FY2017 to FY2026; among Indiana classes, fuel retail stands 8 of 39. With a location quotient of 0.98x, fuel retail holds almost exactly its national weight in the Indiana mix. Indiana's middle half runs from $389,750 to $1.1 million, a band that fits buying an existing station with its convenience store more than building a large new travel plaza.

Branded fuel dominates: 61.0% of the Indiana approvals went to franchised stations. SBA 504 carried 34 loans and SBA 7(a) 112. Merchants Bank of Indiana is the leading 7(a) holder with 26 loans worth $28.1 million; Byline Bank follows with 8, and The Huntington National Bank, First Merchants Bank and First Bank Richmond hold 6 apiece. Indiana development companies share the 504 book, led by Premier Capital Corporation with 11 loans, then Indiana Statewide Certified Development Corporation with 10 worth $10.1 million and Regional Development Company with 8. Marion County, at 28 approvals, has more than any other, and Howard, Porter, Lake and Putnam follow well behind. FY2021 was the busiest Indiana year at 23 loans, while FY2024 carried the most dollars, $21.1 million on 11.

The cancellation problem in Indiana

Cancellations are the warning in this record. Of the fuel loans Indiana approved in FY2017 through FY2024, cancellation claimed at least 17.5%, and as much as 18.3% if undisbursed approvals are added. Station purchases fall apart for familiar reasons: environmental findings on the tanks, a fuel supply contract that will not transfer, or a valuation short of the price. Funded loans have been clean: none of the 72 Indiana loans disbursed in FY2017 to FY2021 has gone bad, a charge-off record of 0.00% so far and 0.00% across their first five years. Those are floors on loans still open.

What an Indiana gas station study has to prove

Given that cancellation floor, an Indiana study has to clear the deal-killing questions early. Demand means traffic counts, gallons and inside sales at this site against competing stations on the same corridor, whether in Marion County or along a rural route in Putnam or Jasper. Cost means the purchase or construction, canopy and tank work, and any environmental remediation. Indiana debt service has to be carried by cents per gallon and inside-store margin together, at conservative volumes. The appraisal must support a going-concern value made up of real estate, equipment and business, and a lender near $1.1 million will want each part supported.

One data limit: Indiana loans land in this class by the borrower's line of business, so truck stops and travel centers sit unseparated beside stations without a store, and the industry index offers EV charging no code at all.