Gas Station Feasibility Study in the San Diego-Chula Vista-Carlsbad, CA Metro Area

Heavy loans, high cancellations

Gas station lending in San Diego is defined by large tickets and a stiff cancellation floor. Among approvals dated FY2017 through FY2024, cancellation was 25.0% at minimum, a floor; Loan Analytics withholds the ceiling variant. The floor describes the cohort and is no verdict on any borrower. From FY2017 through FY2026 the record counts 44 approvals worth $81.9 million, every one in San Diego County.

Size and weight

A midpoint of $1.5 million is 1.42x the national midpoint, and typical loans range from $795,750 to $2.6 million. A quotient of 0.50x puts the class at half its national share, and gas stations and truck stops are 15 of 39 inside the area, though the area is 27 of 600 nationally. Franchises hold 61.4% of loans, so a fuel brand is the norm. Under 7(a) there are 32 loans and under 504 there are 12.

What the code covers

A code describing the borrower's industry leaves truck stops and travel centers lumped together with pumps-only stations, and no field splits them. A project that centers on charging, or on a large convenience store with fuel as a sideline, may not be visible in this record.

Holder and years

Enterprise Bank & Trust is listed on 5 loans worth $15.6 million, a very high average, on SBA's current-holder basis. Charge-offs get no rate here, because Loan Analytics leaves a rate out whenever the cohort is under 30 loans. Printed years are FY2017 with 5 loans and $7.7 million, FY2020 with 5 and $5.3 million, and FY2023 with 8 and $13.3 million.

Studying a San Diego station

The study should separate fuel from the store: gallons, margin per gallon, and inside sales. It should test traffic counts, the competing stations at the corner, and the environmental history of the site, including tank condition, because remediation can overwhelm a budget. A purchase should be tested against the earnings the station can document, and the $1.5 million midpoint shows the size of project the cost test has to carry. With franchises on 61.4% of loans, the supply agreement and brand standards also belong in the study. Given the cancellation floor, closing risk deserves its own line. Coverage of the loan payment must hold when margins narrow, and the appraisal must separate land, improvements, equipment and the business.