SBA 7(a) Gas Station Feasibility Study in Massachusetts

A median loan at a ninth of the national mark

Massachusetts station owners borrow strikingly little. The median loan is $100,000, a mere 0.09x of the national benchmark, and the central half of 69 approvals reaches from $50,000 to $396,000. Gross approvals total $26.9 million. The state ranks 19 among states on loan count, and stations hold 14 of 39 within Massachusetts. A franchise flag appears on 8.7% of loans. That ratio of 0.09x is the plain distinction of the cell: these are small working-capital and improvement loans in the main, not the large real-estate acquisitions that dominate fuel lending elsewhere.

Banks and counties

Eastern Bank holds 18 loans worth $1.9 million, Rockland Trust Company holds 10 worth $7.5 million, and a third holder, TD Bank, National Association, has 7 worth $325,000. The contrast in dollars per loan between the first two is sharp. The list reflects SBA's holder file and expresses no view of any bank's practice. Middlesex County has 17 loans, Bristol 11, Norfolk 8, and Essex, Hampden and Plymouth 6 each.

Cancellations and a missing rate

Cancellation took at least 12.3% of approvals dated FY2017 to FY2024, with the stricter count identical. The charge-off rate is not printed because too few loans reached the early funded group; it is neither a good record nor a zero, just unmeasured.

Testing a Massachusetts fuel and convenience project

Because the usual loan is small, the study must make clear what the money buys. Pumps, tanks and a canopy are expensive, so a request this size probably covers equipment, a refit or operating cash, and the analysis ought to name which. Revenue splits between fuel and the convenience store; each needs its own volume and margin forecast, supported by traffic counts and competing stations nearby. Underground tank age, compliance and environmental liability must be documented, with a plan and budget for upgrades or closure. Brand agreements, where present, add supply and image commitments. A lender should see debt service covered with fuel margins squeezed, and the owner's own experience operating comparable sites. On the data: classification goes by the borrower's own trade, large travel centers blend in with neighbourhood stations, and a charging-focused business has no place in the 2022 index.