Gas Station Feasibility Study in Massachusetts

Massachusetts fuel loans are a fraction of the national ticket

Massachusetts gas station loans are small by any national yardstick. The median SBA loan for gas stations and truck stops in the state is $205,000, 0.19x the national fuel median. At 0.44x, the location quotient shows fuel retailing taking far less of Massachusetts SBA lending than of the national book. Massachusetts still ranks 16 of 53, with 96 approvals worth $42.2 million in FY2017 to FY2026, and the class sits 15 of 39 among Massachusetts classes. Our screen tests the median against both the national class and the Massachusetts all-class record, and it does not flag the cell, so the small ticket appears to reflect Massachusetts lending in general as much as fuel.

Business purchases more than land

The middle half of Massachusetts fuel loans runs from $86,075 to $533,000, sizes that point to business acquisitions, equipment and site upgrades rather than land and new construction. SBA 7(a) carries 69 approvals and SBA 504 carries 27; franchise brands account for 15.6%. Granite State Economic Development Corporation holds 12 of the 504 loans for $6.2 million, Bay Colony Development Corporation 7 for $3.0 million and New England Certified Development Corporation 6 for $3.7 million. Eastern Bank holds 18 of the 7(a) loans for $1.9 million, Rockland Trust Company 10 for $7.5 million and TD Bank, National Association 7 for $325,000. Middlesex County leads with 23 approvals, then Bristol with 15 and Norfolk with 14.

Clean losses, frequent cancellations

The 38 Massachusetts stations funded over FY2017 to FY2021 carry a 0.00% charge-off floor, both to date and over five years. Cancellations are the weak point: 15.7% of FY2017 to FY2024 Massachusetts fuel approvals at minimum, with the ceiling also at 15.7%, meaning these deals fell away rather than sitting undrawn.

For a Massachusetts station, the study has to settle the questions that cause cancellations before the lender commits. Demand means fuel gallons and in-store sales at this site, tested against traffic, access and nearby competitors, and against the long-run pressure on fuel volume. Cost covers tank and dispenser condition, environmental review and any canopy or store work, priced from contractors. Coverage needs fuel margin and store income modelled apart, with a stress case for lower gallons. The appraisal of a station blends real estate, fuel equipment and business value, and the study should separate those strands for the appraiser.

The class follows the borrower's industry code. Massachusetts truck stops and travel centers are folded in, coded alongside fuel stations without a store, and EV charging, which lacks a 2022 index entry, does not appear in these figures at all.