Gaz Enterprises Inc.

The Opportunity

After successfully buying and turning around an underperforming Budget Inn in 2021, Sunmeet was eager to take on another “turnaround” project. Only this time, he was looking for an underperforming gas station/c-store business. He had over eight years of experience owning and operating a c-store but only had worked as a cashier at a gas station for three years.

After three months of looking, Sunmeet found an underperforming Chevron gas station for sale, which included an Extra Mile c-store and car wash, that was in his budget. It was evident to him that with the right management and improvements, the gas station, c-store, and car wash could thrive.

The Challenge

Many conventional lenders are hesitant to finance gas stations due to environmental concerns. This fact, paired with this particular gas station’s historically bad cash flow, meant he needed help finding a lender that would finance the sale.

He was introduced to his loan officer at Celtic Bank, Jim Mueller, through several glowing recommendations. His real estate agent, his cousin and his cousin’s business partner, all praised Jim’s expertise and knowledge of SBA financing in the gas station industry.

As a first-time SBA borrower, Sunmeet was initially overwhelmed by the SBA process, but once he started working with Jim, the process felt much more manageable. Jim was patient and provided comprehensive explanations, ensuring he understood every step and decision.

Because of his transferrable business ownership and management experience and strong personal credit, Celtic Bank extended a $3.8MM SBA 7(a) loan for the purchase.

The Solution

Since the loan’s approval in March 2023, Sunmeet has made several strategic changes, like keeping the gas pumps open 24 hours a day and creating promotional partnerships with local car dealerships. Since implementing these changes, he has seen sales increase from $60-70K to nearly $100K a month.

This upward trend looks like it will continue once the construction of a Hilton Garden Hotel in the adjacent lot is complete. The hotel promises to bring more people to the area who have nicer cars and are okay with slightly more expensive gas.