Gas Station Feasibility Study in Iowa

Iowa gas stations: smaller loans than the country, a strong franchise share

Iowa has 36 gas station and truck stop loans from FY2017 to FY2026, with $29.9 million approved. The state ranks 37 of 53, gas stations place 12 of 39 inside Iowa, and a 0.74x location quotient sits below the national share. The median loan of $508,000 is 0.48x the median for this class nationally, and the core of the file stretches from $71,500 to $1.4 million, an extremely wide band. The franchise share is 30.6%, so branded stations make up a large part of the file.

What the code can and cannot show

Here the code records the borrower's industry only, which means travel centers are folded into ordinary stations, and a rural station with no store looks like a larger travel plaza. EV charging has no entry in the 2022 industry index, so the data says nothing about charging stations, and a borrower adding chargers should not expect a benchmark. Fuel, convenience sales and real estate each carry different economics, none of which the loan data separates.

Of the 36 loans, 30 are SBA 7(a) and 6 are SBA 504. First National Bank is the only lender at the 5-loan cutoff, with 9 loans and $1.5 million, a modest dollar figure per loan that suggests community banking relationships. Cancellation is a floor of 9.7% for FY2017 to FY2024 approvals, with the same 9.7% as a ceiling. The charge-off rate is withheld because the seasoned cohort holds under 30 loans, and the blank does not mean zero.

What an Iowa study must test

Clinton and Washington counties show 5 loans each, Boone 3, and a long list of counties 2, so the experience is small-town and highway-based. A study should test fuel volume through traffic counts and competing stations, inside sales, the cost of tanks, canopies and environmental compliance, and the risk of underground tank liability. Debt coverage belongs on fuel margins that move with wholesale prices and on weak convenience sales. The valuation should treat environmental condition as central, and should state a value if the fuel use ends. The yearly record has gaps: 8 loans in FY2020, none in FY2023 or FY2024, and 4 loans with $5.0 million in FY2025.