Gas Station Feasibility Study in the Salinas, CA Metro Area

Salinas: gas station lending

Within Salinas, over FY2017 to FY2026, SBA approved 32 gas station loans, adding up to $49.9 million in gross approvals. Inside Salinas, gas station lending lands 3 of 39 among the asset classes, while Salinas stands at 39 of 600 among every metro and micro area ranked by gas station loans. Salinas's 4.55x location quotient gives gas station more weight locally. The median loan in Salinas is $1.4 million. The middle half of Salinas loans spans $532,250 to $2.1 million, and the median is a ratio of 1.34x to the class median nationally. A location quotient of 4.55x is the leading signal in Salinas: gas stations and truck stops make up a far bigger part of local lending than of the nation's, third (3 of 39) in the local table and 39 of 600 nationally. The median of $1.4 million is 1.34x the class median nationally, and more than half of the loans are to franchised units, at 59.4%.

For Salinas, the number of loans under each SBA program is held back by Loan Analytics as each count is under the printing minimum. Franchised units account for 59.4% of the Salinas loans. In Salinas, no holder gets to five loans. Salinas therefore lists no lender. Every one of the 32 loans sits in Monterey County, CA.

Salinas: years, floors and limits

For Salinas, only some years can be read: FY2019 has 8 loans totalling $13.4 million. Not published for Salinas: FY2017, FY2018 and FY2020 to FY2026. A year left blank for Salinas is not a year with no loans. Salinas's cancellation rate: held back, below 30 loans in the cohort. Loan Analytics prints no Salinas charge-off rate, as the cohort holds under 30 loans. Salinas's minimum is Loan Analytics' own. Salinas's FY2017 to FY2021 cohort is short. Salinas uses the 2023 July list. A loan joins Salinas solely through its county. Salinas omits unmatched loans. Salinas gas stations and Salinas truck stops or travel centers share a single code. EV charging has no entry in Salinas's 2022 industry index.

Salinas: what to test

A Salinas study for a gas station has to separate fuel margin from store sales, test the traffic count and the competing sites around the address, and price tanks, canopy, dispensers and building against a loan near $1.4 million. Environmental history of the site belongs in the study, because a lender will ask who bears cleanup risk. Payment coverage should hold if fuel margins fall. The appraisal values a going concern, so the income schedule has to be documented by line.