Gas Station Feasibility Study in Nevada

Large tickets, a hard cancellation floor

Nevada gas station and truck stop lending combines big loans with weak follow-through. Between FY2017 and FY2026, SBA approved 61 loans in the class, worth $93.7 million. A $1.0 million median is 0.97x the national figure, with the central band between $534,000 and $2.1 million. The class ranks 29 of 53 among the states and 11 of 39 within Nevada, and the location quotient of 0.79x puts it a little below its national share. One number deserves attention: at least 20.4% of approvals between FY2017 and FY2024 fell away before funding, or 22.4% if unfunded loans are counted as dropped.

Franchise-heavy and two programs

SBA 7(a) accounts for 43 loans and SBA 504 for 18, and 57.4% carry a franchise flag, which points to branded fuel supply agreements. Nevada State Development Corporation leads SBA 504 with 9 loans and $10.6 million, trailed by The Mortgage Capital Development Corporation at 6 loans and $6.2 million. Enterprise Bank & Trust (9 loans, $12.8 million) and Readycap Lending, LLC (6 loans, $8.9 million) head the 7(a) table. Clark County holds 31 loans, far ahead of Lander and Washoe at 6 each, Nye at 4 and Elko at 3, so the lending follows highways as much as population.

No loss rate printed

The early disbursed group is below 30 loans, so no charge-off rate is given. A reader must not take the gap for a clean record. Fuel retail carries environmental liabilities that can turn up years after closing, which is why lenders watch it closely.

Annual shape

Volume ran from 3 loans and $4.6 million in FY2023 to 8 loans in each of FY2021, FY2022 and FY2024. FY2017 produced 7 loans worth $13.7 million, and FY2026 shows 7 worth $9.0 million. The pattern is steady rather than cyclical.

What the study has to test

The Nevada station case has to begin with traffic: counts on the adjoining road, share of through trips against local trips, and the position of competing stations and travel centers. Fuel margin is thin, so inside sales, food service and car wash income must carry the plan, and the study should break out each. With a median close to $1.0 million, cost has to cover land, tanks, canopy and building, plus environmental review. The repayment test should include a fuel price squeeze and a lower gallons case, and the appraisal will treat the property as a special-purpose asset. Note that the code is the borrower's industry, truck stops cannot be separated from stations, and electric charging has no entry in the 2022 index.