SBA 7(a) Gas Station Feasibility Study in Tennessee

Big checks in Tennessee fuel retail

Tennessee gas station loans under SBA 7(a) are among the largest tickets of any class in this file. Across FY2017 to FY2026 the state shows 58 approvals worth $63.7 million, the median loan is $975,500, and the middle half runs from $663,500 to $1.5 million. Against the nationwide 7(a) median for gas stations the Tennessee figure comes to 0.89x. The state ranks 24 by loan count and the class lands at 11 of 39 on the Tennessee list. A fifth of loans, 20.7%, carry a franchise, which at gas stations usually means a fuel brand.

Where the loans sit

Shelby County leads with 14 loans, ahead of Davidson with 6, Knox with 4 and Fayette and Weakley with 3 each. Pinnacle Bank lists 9 loans worth $12.1 million, Citizens Bank lists 8 worth $10.7 million, and Celtic Bank Corporation lists 7 worth $6.7 million. Annual volume was uneven, with 11 loans in FY2019 and again 11 in FY2021, but only 2 in FY2024.

Reading the limits of the code

The industry code describes the borrower, not the property. Gas stations lacking a convenience store share their code with truck stops and travel centers, and nothing in the 2022 industry index names vehicle charging, so a project that adds chargers cannot be isolated here.

Outcomes

For the FY2017 to FY2024 vintages, cancelled Tennessee loans make up 20.8%, and the ceiling is the identical 20.8%. No loss rate for Tennessee fuel retail is printed: too few early loans have funded, and silence on losses should not be taken as nil.

What the study has to test

A fuel station study begins with traffic: counts on the road, the turn movements that let a driver reach the pumps, and competing stations within sight. Fuel margins are thin, so the forecast must lean on inside sales, food service and the lottery or tobacco mix, and it should say how much of the credit depends on each. Environmental condition of the site, tank age and the cost of remediation are central because they decide both cost and the appraisal. Coverage of the payment must survive a drop in gallons sold, and the study should compare the request to the $975,500 median to show whether the real estate or the business goodwill is the bigger part of the price.