Convenience Store Financing: SBA 7(a) & 504

Most new convenience stores are financed, and for many owners that means an SBA-guaranteed loan. This page covers the basics as SBA publishes them. It is general information, not financial advice; a lender or Certified Development Company will tell you what your project qualifies for.

The two SBA programs owners use most

	SBA 7(a)	SBA 504
Maximum loan	$5 million	$5.5 million
Typical uses	Real estate, equipment, working capital, some refinancing	Land, buildings, renovation, long-life equipment
Not allowed	Varies by loan type	Working capital, inventory, speculative real estate
Structure	Bank loan with SBA guarantee	Bank loan plus a loan from a Certified Development Company

Loan limits are as stated on SBA.gov in October 2026. Program rules change, so confirm them with your lender.

Down payment rules for a gas station

A gas station with a canopy, tanks and dispensers is usually treated as a limited or single purpose property, because the building is hard to use for anything else. For a 504 project, SBA's rule at 13 CFR 120.910 sets the borrower's contribution at:

At least 10% in most cases.
At least 15% if the business has operated two years or less.
At least 15% if the project is a limited or single purpose building.
At least 20% if both apply.

That means a new operator building a new gas station should usually plan on at least 20% down on a 504 project. Lenders may require more.

What lenders want to see

Your experience. Lenders look hard at the operator, because the business and the property are tied together.
A credible project budget. Land, site work, fuel side, building, equipment and soft costs.
A feasibility study or market analysis, especially for a new site. See our feasibility study guide.
Projections for fuel volume, in-store sales and margins.

Where design fits

A lender is more comfortable with a budget built from a real floor plan and equipment package than with a number per square foot. Getting the store designed early gives you the drawings and the equipment schedule that make the budget credible. JayComp's published range for a full store design is $15,000 to $75,000+, and a basic floor plan starts around $5,000 to $10,000.

Sources

U.S. Small Business Administration, 7(a) and 504 loan program pages (sba.gov), October 2026.
13 CFR 120.910, borrower contribution for 504 projects.

Frequently asked questions

What is the maximum SBA loan for a convenience store?

SBA states the maximum 7(a) loan is $5 million and the maximum 504 loan is $5.5 million. Check current limits with a lender, since program rules change.

How much down payment do I need for a gas station?

For an SBA 504 project, 13 CFR 120.910 requires at least 15% for a limited or single purpose building, at least 15% for a business that has operated two years or less, and at least 20% when both apply. A new station built by a new operator usually falls in the 20% case.

Can a 504 loan pay for equipment?

Yes, if it is long-term machinery and equipment. SBA lists equipment with a useful life of at least 10 years as an eligible use. Working capital and inventory are not.

Do I need drawings before I apply?

Lenders want a credible project budget. A floor plan and an equipment package priced from it make the budget far more credible than an estimate per square foot.

Turn a planning range into a quote for your store

JayComp Development has designed and built more than 2,500 convenience stores, liquor stores and travel centers since 1996, from Ravia, Oklahoma to all 50 states. We design the store, then supply and install the equipment.

Send the site, the store type and your timing. Quotes are free, with no obligation.

Financing a Convenience Store or Gas Station: SBA 7(a) and 504 Basics