USDA & SBA Loan Guidelines for Gas Station
and Convenience Store Financing

Eligible Property Types: Branded stations welcome. Properties may have an office, car wash, auto repair, and/or garage component as well. Loan Size: USDA: $250,000 - $5,000,000  SBA: $250,000 - $2,000,000 Eligible Locations: Nationwide Loan Term Amortization: 25 years Collateral: First position mortgage as certified by title search and title policy on property. Must have a first security interest under UCC-1 on all business assets of real estate and operating entities. Loan Pricing: Determined by pricing matrix. Debt-Service Coverage Ratio: Minimum DSCR of 1.25x depending upon property type, age, physical condition, location, and competitive market position. Loan-to-Value Ratio: 60% LTV. Convenience stores 80% LTV. Cash Out Refinance: Borrower must justify proceeds to be used for business purposes only. Minimum 2 years ownership. Maximum LTV 60%. Convenience store maximum LTV 75%. Loan Escrows: The borrower may be required to contribute monthly to an escrow account for real estate taxes and property insurance. The borrower may also be required to establish a monthly capital replacement escrow reserve equal to the greater of (a) 5% of gross revenues or (b) an amount to be determined by Ocean Capital on the basis of an engineering report and site inspection. Appraisal: Complete summary appraisal required. Environmental Insurance/Screen or Phase 1: Required Survey: Updated survey required on all property types. Reserves at Closing: The borrower shall establish a remediation/repair reserve at closing equal to 125% of the required deferred maintenance repairs as indicated in the environmental and architectural / engineering reports. Eligible Principals: U.S. citizens, permanent resident aliens, non-permanent resident aliens (with restrictions). Majority principal owners cannot be on probation or parole. Recourse: Every loan will be personally guaranteed by any shareholder with 20% or more ownership in the company.