SBA 7(a) Gas Station Feasibility Study in Pennsylvania

Lower median, wide spread

Pennsylvania's gas stations and truck stops take a median of $619,000, 0.57x the 7(a) norm for the class nationally, and that ratio is what sets the cell apart. The spread is wide: the bulk of loans runs from $93,750 to $1.1 million, which covers both small convenience-store conversions and large acquisitions. The state logged 76 loans worth $59.5 million, stands 17th among states on count, and the class sits 16 of 39 in the state. Franchise ties cover 26.3% of loans.

The industry code is what SBA has on file, which is why gas stations cannot be told apart from truck stops and travel centers, and gas stations with no convenience store are indexed to the same code. Charging for electric vehicles is absent from the 2022 industry index, so such projects are invisible in these figures. A study of a modern fuel site should say what it sells and whether charging is planned.

Lenders and counties

One large holder, Metro City Bank, has 12 loans at $13.0 million, a heavy average. The next holders are Manufacturers and Traders Trust Company with 9 loans ($2.3 million), The Huntington National Bank with 7 ($2.2 million) and TD Bank, National Association with 11 ($2.4 million). Those are SBA's holder records only. Philadelphia County has 11 loans, Montgomery 8, Luzerne 7, Lehigh 6, Bucks 5, and Allegheny and Cumberland 4 each. Approvals were 2 in FY2020 and 12 in FY2022; FY2024 brought $10.1 million.

On Pennsylvania gas station approvals made by FY2024, cancellation starts at 11.9%, or 13.6% counting undisbursed loans. The early funded cohort is too thin to support a charge-off rate here; the blank is not a zero.

What a Pennsylvania fuel-site study must test

A fuel site earns from gallons and from the store, and the two behave differently. The study should estimate traffic counts on the road, the competing stations and their prices, and the margin per gallon, which is thin, alongside inside sales, where the margin is higher. Environmental condition is a central question: underground tanks, past releases, and the cost of tank replacement or remediation can outweigh the building, so a site assessment should be part of the plan. The appraisal needs to value the real property and the business separately, and the budget should include equipment, canopy, signage and inventory. Brand supply agreements, where used, affect fuel cost and should be explained. Show the loan payment covered if fuel volume falls.