Gas Station Financing Secured
Despite Troubled Economy

Suten, Inc. Long Island, New York

Challenge:

Suten, Inc. had entered into a purchase agreement with the property owner to purchase the newly constructed gas station and convenience store. The borrowers made several attempts to secure financing with local banks. However, given the current troubled economy, lenders interest in the petroleum industry had dissipated. The borrowers had put up $750,000 of their own money prior to construction which was still not enough capital to locate a lending partner. By not securing financing the borrowers were in danger of losing their deposit and did not have access to the capital already invested in the project. After searching locally for a lender’s aid, the borrowers decided it was essential to extend their pursuit to a national level.

Solution:

Suten, Inc. was introduced to Ocean Capital, the commercial lending division of Home Loan Investment Bank, FSB. The process of obtaining approval was underway. Ocean Capital is known for its expertise in the petroleum industry and as a preferred lender with the Small Business Administration (SBA). Even in a difficult lending environment, Ocean Capital was able to find common ground for all parties involved and compiled an attractive loan package to facilitate the purchase.

Results:

On March 30th, 2009, Ocean Capital provided Suten, Inc with an SBA 7(a) loan. The construction had been completed on the new gas station and convenience store during the loan process, and was open for business when the loan closed. It was very important to both the Bank and the borrower that the property be open and operational prior to the summer months due to the seasonality of the location and the increase in travel for the area. The borrowers are currently enjoying much more success with their gas station & convenience store than they anticipated despite the rocky economy.