In general, borrowers shopping for a convenience store loan will be pleased with the number of options available to them. Together with conventional, Sba and a few Cmbs programs.
One of the biggest components to convenience store loans is whether or not the subject property offers gasoline. Basically any convenience store that offers gasoline will be classified as a gas center and borrowers should seek financing under that category. As a side note, we happen to be working with a borrower who had his convenience store loan in process. The over eager loan officer had it wrongly classified as convenience store(not as a gas station). As soon as the estimation company came out to the facility and reported its seeing to the funding bank the loan was immediately declined. This of policy wasted ,000 for the borrower and 3 months of his time.
Sba Loan
C-Store Loans
In general, borrowers have three options for their c-store loan. Conventional, Sba and Cmbs loans. Sba loans will regularly contribute the top level of financing and some of the longest fixed rates for this building type. For example 85% loan to cost financing is coarse for convenience stores. Fixed rates can be for as long as 10 years. Don't let the rumors about the Sba process scare you off as the Sba has done a lot in the last 3 years to enhance their process. You should be able to close your loan in 45 days.
Make sure any way that whoever the funding bank is, that they hold the Plp designation. What's important about this for you is that the loan will only have to be underwritten one time. Versus working with a bank that is not Plp you will have to have the deal underwritten once by the bank Than by the Sba. That's where the 75 to 120 days to close nightmare stories come from.
Cmbs loans also have some very strong options, like 80% financing and rates fixed for up to 30 years, yes 30 years. However, due to the subprime mess many of these options have become microscopic or expensive. But it is still very much recommended that you explore these options as they maybe a great fit for your situation.
Conventional financing, i.e. A regular loans from your local bank, will regularly contribute the best rates, any way they will regularly have the most conservative underwriting and weakest terms. Fixed duration rarely exceed five years with shorter amortization periods of 15 to 20 years for convenience store loans.
Convenience Store Loans - Options Sba Loan
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