SBA 504 Gas Station Feasibility Study in California

A franchise-led fixed-asset market

California fuel retail is the largest SBA 504 market for gas stations and truck stops, and no state beats it by loan count. Across FY2017 to FY2026 the program approved 244 loans worth $405.4 million, and among California asset classes it comes 6 of 39. The $1.5 million median is 1.75x the nationwide 504 median for the class, which is the one metric that makes this cell distinctive; half the loans fall between $936,750 and $2.2 million. Franchise brands took 68.9% of loans, so most of this lending finances branded stations. The 504 program funds land, buildings and long-lived equipment alongside a participating bank, alongside a participating bank.

Development companies, not banks

Because the program works through certified development companies, the lender table lists them. The Mortgage Capital Development Corporation has 54 loans worth $108.6 million, 31 loans each sit with Advantage Certified Development Corporation ($72.1 million) and Cen Cal Business Finance Group ($46.6 million), Greater Sacramento Certified Development Corporation 27 and California Statewide Certified Development Corporation 19. As the page says, these are the current holders SBA reports. San Bernardino County has 32 loans, Los Angeles 22, Kern 19, San Joaquin 14 and Sacramento 13.

Outcomes: heavy cancellation, no charge-offs

The cancellation floor on approvals through FY2024 is 18.5%, or 22.5% counting loans never disbursed, which is a substantial share. Yet among 71 funded loans in the matured cohort, not one has been charged off to date, shown as 0.00%, and the five-year figure is likewise 0.00%. Those are floors and open loans may change them, and the figures show approvals that were cancelled before funding alongside funded loans with no charge-off to date. Volume was 23 in FY2017, 9 in FY2020, 42 loans worth $90.8 million in FY2025, and 29 loans in FY2026.

What a California fuel-site study must test

Loans are filed under the borrower's industry code, which leaves travel centers and truck stops counted alongside ordinary stations, and EV charging is missing from the 2022 industry index, so a charging-led plan falls outside this class. A study must test fuel throughput against traffic counts, the margin on fuel and the store, tank and environmental history of the parcel, state clean-air and tank regulations, and the brand supply agreement. Land and construction dominate a 504 budget, so entitlement timing, an environmental report and cost estimates need to be in hand before approval. Debt service coverage should hold if fuel margins narrow, and the appraisal has to divide value between the fuel business and the land under it.