Gas Station Feasibility Study in New York

New York fuel lending runs small

A New York gas station loan is small by national standards. The median approval is $162,000, only 0.15x what the class borrows at the national median, and New York's quartile range spans $50,000 to $704,750. Yet the state ranks 9 of 53 by count for the class, with 152 approvals and $88.4 million from FY2017 to FY2026, while a location quotient of 0.34x and a rank of 16 of 39 among New York classes show fuel taking a far smaller share of state SBA lending than it does nationally. The gap in loan size is the first fact to take in.

The banks behind New York stations

Manufacturers and Traders Trust Company holds 34 of the 7(a) loans for $7.1 million and TD Bank, National Association 21 for just $735,000, and Five Star Bank's 8 loans total $715,000. KeyBank National Association holds 14 for $4.9 million, and NewBank's 7 loans carry $6.8 million. Empire State Certified Development Corporation holds 15 of the 17 SBA 504 loans, for $15.0 million; 7(a) carries 135. Branded stations are 18.4% of loans. Nassau and Suffolk counties lead with 18 loans each, then Erie with 12, Wyoming with 10 and Ulster with 7.

Cancellation is the outcome to watch. Cancellation took at least 16.0% of the New York fuel approvals made in FY2017 to FY2024, and the ceiling reaches 21.0% if every undisbursed loan joins them. Losses are low by comparison: of 59 New York station loans funded in FY2017 to FY2021, 3.4% are charged off to date and 1.7% within five years, floors that can rise. Volume is uneven, with 23 loans and $16.1 million in FY2021, 7 and $4.2 million in FY2022, and 17 and $15.1 million in FY2025.

How to test a New York fuel station request

A study for a New York station has to settle what kind of deal it is. A small loan for working capital or pumps calls for a cash flow test on fuel gallons, fuel margin and any store or service income. A purchase of the property calls for a full study: traffic counts, access and visibility, the competing stations on the same corridor, environmental history and tank condition, and an appraisal that separates real estate, equipment and business value. Debt service coverage should hold at conservative fuel margins. Given the cancellation range, the study should also confirm early that the environmental review and title will clear. Keep in mind that the code describes the New York borrower's line of business: travel centers and truck stops are coded together with fuel-only stations lacking a store, and the 2022 industry index gives EV charging no code of its own.