Alliance Business Capital offers financing for Gas Stations with a Convenience Stores or stand-alone Convenience Stores throughout the U.S.
Our primary financing program for Gas Stations is the SBA 7(a) Loan Program and most of our borrowers will fit into this Loan Program. This is a great loan program allowing for up to 85% loan to value and up to a total of $5 Million aggregate per borrower.
Alliance, in addition to financing for Gas Station and Convenience Stores, can also assist with financing for Automotive Repair Shops, Tire Stores, Automotive Service Centers and Car Washes.
Please see below for information on all of the current Automotive related Financing Options available through Alliance.
Gas Station Loan Programs
Alliance offers the SBA 7(a) Loan Program throughout the U.S.
SBA 7(A) Loan Program Overview Minimum Loan Amount: Typically $500,000 but will consider less on a case by case basis
Maximum Loan Amount: $5 Million - can possible go higher with a Pari Passu Loan
Maximum Loan to Value: 85% Maximum
Use of Proceeds: Business Acquisition, Expansion, New Construction, Purchase Equipment or FF&E, Purchase a New Building and Land, Lease-hold Improvements, Working Capital, Refinance Debt (for compelling reasons) Purchase Inventory, Start a Business
Minimum Credit Score: 680 is preferred minimum with exceptions
Who Qualifies: Must be a for profit business & meet SBA size standards, show good character, credit, management, and ability to repay.
Must be an eligible type of business.
Prepayment Penalty: Typically a 3 year prepayment penalty, however lender determined.
Terms: Up to 25 years on Real Estate
5-10 Years on Working Capital, Machinery and Equipment Loans.
Alliance offers the SBA 504 Loan Program throughout the U.S. For more information on the SBA 504 Loan Program please see below general criteria.
|SBA 504 Loan Overview|
|Minimum Loan Amount:||Varies from Lender to Lender.
Alliance has a $2 Million minimum on a 504 Loan
|Maximum Loan Amount:||$10 Million 1st Conventional Loan
$5 Million CDC/SBA
|Maximum Loan to Value:||80% CLTV
Breakdowns as follows: 50% Conventional 1st Mortgage
30% CDC Loan
20% Borrower Injection
|Use of Proceeds:||Long-term, fixed asset loans, Construction, New Purchase and Refinance (with compelling reason)|
|Loan Term:||Typically 10-20 Years|
|Minimum Credit Scores:||Typically a minimum middle score of 680 with exceptions is required.|
|Who Qualifies:||For-profit businesses that do not exceed $15 Million in tangible net worth, and do not have an average two full fiscal net income over $5 Million.
Must be a minimum of 51% owner occupied on existing properties or 60% on new construction.
|Benefits to Borrower:||Lower down payment than a conventional loan, long term financing with no balloons.|
Alliance offers Bridge Loan Programs for Owner Operators or for Investors in most States. Please see below general criteria for more information on the Bridge Loan Program.
|Bridge Loan Overview|
|Maximum Loan Amount:||$20 Million|
|Minimum Loan Amount:||$750,000|
|Maturity and Amortization:||Up to 36 Months / Interest Only|
|Maximum LTV:||Typically 65 - 70%
|Eligible Use of Proceeds:||Purchase, Refinance, Cash-Out Refinance|
|Eligible Use of Property:||Owner Occupied, Investor|
|Rate Options:||Fixed and Adjustable Rates available|
|Loan Fees:||Lender will typically charge a minimum 1% Loan Fee
Alliance will have a 2-3% Loan Fee
|Guarantees:||Recourse and Non-Recourse available|
|Minimum FICO:||No Minimum FICO|
|Debt Service Requirements:||Start Up and Non-Cash Flowing Properties considered|
Alliance may be able to assist you with a Portfolio Loan for Owner Operators of Gas Stations. See below for more information.
|Portfolio Loan Overview|
|Minimum Loan Amount:||$10 Million|
|Maximum Loan to Value:||75% Maximum LTV, however most deals with fall in the 65% to 70% range.|
|Loan Term:||5-7 Years|
|Rate Structure:||Typically based on 30 day LIBOR +2.25 to 4.00
Possibly consider a 5 year swap.
|Items needed to vet a potential transaction:||3 Year of FYE Financials (P&L and Balance Sheet)
Current YTD Financials with the corresponding previous year's period
Detailed Business Debt Schedule
Detailed breakdown of the properties owned with branding info, current value, purchase date and price, and whether you operate or lease the property out to a third party operator
Alliance may be able to assist you with Business Only Financing under an SBA 7(a) Loan.
The minimum loan amount is $500,000 and there can not be any environmental issues. You must have a minimum of 3 years experience in the industry and the ability to inject 10-15% plus have sufficient post-closing liquidity to qualify for Business Only Financing.
Please see below table for more information.
|Business Only Financing|
|Minimum Cash Injection:||10% + closing costs
Must also have an additional 10% in post-closing liquidity
|Maximum Loan Term:||10 Years fully amortizing|
|Minimum Credit Score:||700|
|Minimum Loan Amount:||$500,000|
|Maximum Loan Amount:||$5,000,000|
|Experience:||Must have experience in the industry|
Non-rural locations preferred
|Collateral:||All of the business assets including equipment, FF&E etc.
If you own other real estate with equity the bank would put a lien on it as well.
The SBA requires the bank to try and be 100% collateralized.