Gas Station Feasibility Study in Michigan

Michigan fuel loans run below the national ticket

The Michigan gas station median is $816,000, 0.78x the class median nationally, and that gap passes our distinctness margin against both gas stations and truck stops nationwide and Michigan's all-class record. The class is light in Michigan: its location quotient is 0.49x, it places 15 of 39 among Michigan asset classes, and 135 approvals worth $148.7 million from FY2017 to FY2026 rank the state 13 of 53. Michigan fuel retailers use SBA less than their counterparts elsewhere and borrow somewhat less when they do.

Cancellations a borrower should plan for

Cancellation is the figure a Michigan borrower should weigh most. Of Michigan fuel deals approved over FY2017 to FY2024, at least 18.8% were cancelled after approval, and 19.8% once loans not yet disbursed are counted. Losses, by contrast, are low: 1.9% of the 52 Michigan stations funded across FY2017 to FY2021 ended in charge-off, all within the first five years; these too are floors. The pattern says Michigan fuel deals fail at the closing table more often than in repayment, and environmental findings, title problems or seller terms are the kind of issue a study can surface early.

Brands, programs and lenders

Franchise or branded operations account for 43.7% of loans. The middle half of Michigan approvals runs from $252,000 to $1.5 million. SBA 7(a) carried 117 loans and SBA 504 carried 18, with Michigan Certified Development Corporation at 11 and Great Lakes Commercial Finance at 6. The largest Michigan 7(a) lender is The Huntington National Bank, with 26 loans worth $18.5 million; Byline Bank's 10 total $17.1 million, Fifth Third Bank has 9 and First Internet Bank of Indiana 5 worth $7.4 million. Macomb County has 23 approvals, Oakland 21 and Wayne 18. Dollars have risen sharply of late, to $25.3 million in FY2025 and $30.8 million in FY2026.

Any Michigan gas station feasibility study has to measure gallons pumped and store sales at the specific site, the traffic count and competing stations, and the fuel margin and brand terms. It must cost tank, dispenser and canopy work, plus any environmental remediation, against a loan near $816,000, and show debt service coverage on realistic fuel and store margins. The appraisal will separate real estate, equipment and business value, and the study's numbers should support each.

The code is the borrower's industry, so a truck stop or travel center cannot be split out: they sit with gas stations that lack a convenience store. Charging stations for electric vehicles have no entry in the 2022 industry index at all.