Gas Station Feasibility Study in Louisiana

Franchise-heavy and mid-sized

Louisiana gas station lending reads as mid-sized and brand driven. SBA approved 45 loans across FY2017 to FY2026, totalling $44.8 million, and a median of $810,000 that is 0.77x of the class norm elsewhere. Loans in the middle half span $305,000 to $1.3 million. A third of the cell, 33.3%, is franchised, so fuel brand terms shape many borrowers. The state is 33 of 53 for the class, gas stations hold 11 of 39 places in Louisiana's asset mix, and a location quotient of 0.88x is a little under the national weight. None of the median, cancellation or charge-off figures stands out against the benchmarks.

Programs and lenders

Almost all loans came through 7(a), 43 against 2 under 504. American Bank holds 6 loans and $8.3 million, a large average, and Gulf Coast Bank and Trust Company holds 5 loans and $4.3 million. Calcasieu Parish has 8 loans, more than any other, with Orleans and Washington at 4 each and East Baton Rouge at 3. FY2025 produced 12 loans and $7.4 million, the busiest year, after FY2017 produced only 2 loans and $2.0 million, and FY2026 recorded 3 loans and $1.2 million.

Cancellation range

Cancellations in the earlier approval years reached at least 6.7%, with a ceiling of 10.0% once undisbursed loans are counted. Louisiana carries no published loss rate, since the funded cohort is under 30 loans.

Planning a Louisiana fuel project

A lender reading a fuel deal asks first what is under the ground, so the study should include the environmental history of the site, the age of the tanks and the cost of replacement or closure. After that comes demand: traffic past the site, the competing stations, the fuel brand's supply terms and the margin per gallon, with convenience sales and food service tested apart from fuel. Because a third of borrowers here are franchised, brand fees, image upgrades and required hours belong in the pro forma. Coverage should survive a thin fuel margin and temporary closures. The appraisal will treat the station as special purpose, so owner equity and a going concern value need to be documented.

Limits of the code

The industry code follows what the borrower does, so travel centres cannot be split from ordinary stations, and a business built on vehicle charging has no entry.