How to Finance a Citgo Franchise: Stations, Supply and SBA
By Anthony Cornella
A Citgo franchise loan is a gas station loan shaped by a fuel supply relationship. Citgo does not sell restaurant-style franchises with a single disclosure document and a published investment range; instead, independent owners fly the Citgo brand under branded supply agreements, most often through a fuel distributor (which Citgo calls a marketer) that holds its own contract with the brand.
That structure changes how a deal is financed. The station’s land, building, canopy and fuel system are usually the largest assets, the supply agreement drives fuel margins and obligations, environmental review is central, and the SBA Franchise Directory lists Citgo under several distributor-specific entries with notes that limit what the distributor may record against the property. This article explains how each piece affects a buyer, a builder or an independent owner thinking about switching to the Citgo flag.
US Professional Funding is not affiliated with, sponsored by or endorsed by Citgo; the name is used only to describe the business. Brand programs, supply agreements and any disclosure documents can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax, environmental or investment advice. Have a qualified attorney and accountant review any supply agreement, branding agreement and related documents before you sign.
Citgo Franchise Loan at a Glance
- What you are joining: a branded fuel program. Most station owners buy Citgo-branded fuel from an authorized marketer under a supply agreement rather than signing a classic franchise agreement with the refiner.
- Network: the company describes a network of approximately 4,000 locally owned and independently operated branded retail outlets, according to its 2025 and 2026 announcements.
- Who owns the stations: independent owners and marketers, which means real estate, store operations and most equipment sit with the operator, not the brand.
- Brand programs: the Club Citgo loyalty program, the Illuminate image program, branded payment cards and the brand’s advertising campaigns.
- Fees and costs: set by the supply or branding agreement for your site and channel; there is no single published franchise fee or Item 7 table for a Citgo station.
- SBA Franchise Directory: listed under five codes (S4232, S7192, S8243, S8299 and S8386), each tied to a fuel distributor agreement, with notes restricting filings against SBA real estate collateral.
- Typical financing: SBA 7(a) or SBA 504 for land, building and business; equipment financing for dispensers, tanks and store fixtures; working capital for fuel loads and inventory.
What Is Citgo?
Citgo Petroleum Corporation is a refiner and fuel marketer that operates under the Citgo brand. The company reports that it owns and operates three refineries, in Lake Charles, Louisiana; Lemont, Illinois; and Corpus Christi, Texas, with a combined crude capacity of approximately 829,000 barrels per day as of 2026.
On the retail side, the familiar red triangle sign appears at stations that the company does not run itself. Its own announcements describe roughly 4,000 locally owned and independently operated branded outlets, historically concentrated east of the Rocky Mountains. Each year the company holds marketer roundtable meetings to walk its branded customers through loyalty, image and advertising programs for the coming year.
How Citgo stations are structured. In most markets the chain of supply runs from the refiner to a branded marketer, and from the marketer to the station. A marketer may own and operate its own stations, lease stations to dealers, or supply independent owners who own their sites outright. The station owner signs a supply agreement that sets the brand obligations, the term, volume expectations and image requirements, and the marketer in turn answers to Citgo under its own distributor agreement.
The brand licensing path. In 2025 the company announced a brand licensing program aimed at qualified marketers and retailers who source their own fuel in markets outside its traditional territory, starting with several western states. Licensees gain access to the brand image, loyalty program, payment cards and marketing support. For a borrower, the key point is that the economics and obligations of a licensing deal differ from a classic supply contract, so lenders will want the actual agreement in hand.
Why lenders view Citgo the way they do. Lenders see a long-established, widely recognized fuel brand supported by its own refining system. They also see the same risks that come with every gas station: environmental exposure from underground storage, volatile fuel prices, thin fuel margins, heavy card processing costs and a dependence on the convenience store for profit. In a Citgo deal, the site, the supply agreement and the operator’s experience usually matter as much as the logo on the canopy.
Citgo Station Costs
Because Citgo stations are owned by independent operators and supplied through marketers, there is no franchisor-published investment range to quote. Costs depend on whether you are buying an operating station, rebranding a site you already own or building from the ground up, and on how large the store and fuel island will be.
Brand, image and supply terms. Any branding costs, image commitments, minimum volumes and incentive repayment terms are set out in the supply or licensing agreement. Ask the marketer or the brand for the complete agreement, any incentive or rebate schedule and the image specifications before you size a loan.
Land and building. In an acquisition, the price usually covers land, the store building, canopy, fuel system, equipment and goodwill. For a ground-up project, budget for land, site work, grading, paving, utilities, the store shell, the canopy and permits. Land and building are often the largest single component of a Citgo franchise loan.
Fuel system. Underground storage tanks, piping, dispensers, leak detection, tank monitoring and vapor recovery equipment where required are expensive and heavily regulated. Their age, construction and compliance status influence the purchase price, the environmental review and the lender’s view of collateral.
Image and rebranding. Switching an independent or differently branded station to Citgo can involve new canopy fascia, pump toppers and decals, price signs, dispenser upgrades and payment terminals that accept the brand’s cards and loyalty program. The Illuminate image program sets the look that new and refreshed sites are expected to follow.
Store build-out and equipment. The convenience store needs coolers, freezers, shelving, food service equipment if offered, security systems, a point-of-sale system and back-office technology.
Opening inventory and working capital. Plan for the first fuel loads, merchandise inventory, payroll, insurance, utilities and the gap between card sales and settlement.
Ongoing Costs and How They Affect Your Loan
Fuel pricing and margins. Your fuel cost is set under the supply agreement, often on a formula tied to the market. Margins can tighten or widen quickly, so lenders look at fuel gallons and cents-per-gallon margin history rather than fuel revenue alone.
Supply agreement obligations. Volume commitments, image standards, brand standards and incentive clawbacks can all affect cash flow. If you leave the brand early or miss volume targets, unamortized incentives may have to be repaid, which a lender will treat as a contingent obligation.
Card processing and loyalty costs. Most fuel sales are paid by card, and processing fees eat into already narrow margins. Loyalty and fleet card programs drive traffic but have their own cost and settlement timing, which belongs in your cash flow model.
Maintenance and compliance. Tank testing, leak detection, dispenser maintenance, insurance and environmental compliance are recurring costs. Lenders expect reserves for them.
How lenders factor these costs in. Lenders build debt service coverage from fuel margin dollars, inside-store gross profit and any other income such as car wash or food service, then subtract operating expenses, supply obligations and the owner’s draw. A conservative model that holds fuel margins flat or slightly lower than history is more persuasive than one that assumes margins only improve.
Brand Requirements for New Dealers
Citgo does not publish a single net worth or liquidity minimum for station owners. Requirements come from the marketer that supplies you and, in licensing deals, from the brand directly. Expect a review of your credit, financial statements, experience and the site itself, along with commitments on image, volume, brand standards and the agreement term.
The company’s announcements point prospective marketers and retailers to its brand sales team and local representatives. Approval by the brand or the marketer and approval by your lender run on separate tracks, so start both early and keep each informed of the other’s conditions.
Ways to Own a Citgo Station
Buying an operating Citgo station. This is the most common route for first-time buyers. You buy the business and, ideally, the real estate, and either assume the existing supply agreement or sign a new one with the marketer. Lenders can underwrite actual fuel volumes, inside sales and expenses, which makes an existing station easier to finance than a new build. Our page on gas station and convenience store acquisition loans explains how we approach these purchases.
Rebranding a station you already own. Owners of unbranded or differently branded stations sometimes switch to Citgo for brand recognition, loyalty traffic and card acceptance. The decision has real trade-offs in pricing flexibility and obligations, which our comparison of branded and unbranded gas stations lays out. A rebrand is often financed as an image and equipment project, sometimes alongside a refinance of existing debt.
Building a new station. Ground-up projects require land, permits, construction, the fuel system and a store, plus time to ramp up sales. They are financed on projections, so experience and liquidity carry more weight. See our options for gas station start-up financing.
Operating under a marketer. Some owners lease a station from a marketer that controls the site. In that case the loan generally finances the business, inventory and equipment rather than real estate, and the lease and supply terms become central to underwriting.
Financing Options for a Citgo Franchise
SBA 7(a) loans. For many buyers seeking a Citgo franchise loan, an SBA 7(a) loan is the most flexible tool for a station purchase because it can cover real estate, the business, equipment and working capital in one loan. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
SBA 504 loans. When the project centers on owner-occupied real estate and long-lived fixed assets, such as buying land and a building or constructing a new station, an SBA 504 loan can be a strong fit. It is designed for fixed assets rather than goodwill or inventory, so buyers often pair it with other financing for the business portion.
Conventional loans. Experienced operators with strong cash flow, substantial equity or multiple sites sometimes use conventional real estate and term loans, especially for deals that exceed SBA limits or need faster or more customized structures.
Equipment financing. Dispensers, tank monitoring systems, payment terminals, coolers, food service equipment and car wash equipment can often be financed separately. Our gas station equipment financing page covers how these loans and leases work.
Working capital and lines of credit. Fuel deliveries, inventory, payroll and settlement timing create real cash needs, especially after a rebrand or ownership change. A line of credit or term working capital can keep the station supplied. Learn more about working capital for gas stations.
Brand and marketer incentives. Brands and marketers sometimes offer image funding or rebates tied to a supply commitment. Lenders treat these carefully: an incentive that must be repaid if you leave the brand early is effectively contingent debt, and it should be disclosed to your lender.
Seller financing on resales. A selling owner may carry part of the price in some transactions. Any seller note needs the senior lender’s approval and is typically subordinate to it, and SBA programs may limit how such a note is structured or repaid.
SBA Loans for Citgo Stations
SBA lending to branded businesses runs through the SBA Franchise Directory, which lists brands whose agreements have been reviewed for SBA eligibility. For fuel brands, the listing usually covers the supply or distributor agreement that gives the station its brand, and SBA lenders generally rely on the directory entry and its notes when they structure a loan. A listing does not approve any borrower or any site.
Citgo’s directory listings. The SBA Franchise Directory lists Citgo under five codes: S4232, S7192, S8243, S8299 and S8386. Each entry is described as a fuel distributor agreement, and several are tied to specific distributors. In practice, your lender will match the agreement you are signing, and the marketer that supplies your station, to the correct directory entry.
What the directory notes mean in plain English. The notes on Citgo’s listings are about protecting the SBA’s position in the station’s real estate.
- No filings against SBA real estate collateral: for several listings, the distributor may not file anything against the real estate that secures the SBA loan. That rules out recording liens, memoranda or similar documents that could cloud the lender’s title.
- One limited exception: for one listing, the distributor may record a mortgage or deed of trust, in the SBA-approved version, only for money it advances for site improvements, and that lien must be subordinated to all SBA financing.
The practical effect is that the supply relationship cannot sit ahead of the SBA lender on the property. If a marketer has recorded documents against the site in the past, expect the title company and the lender to require that they be released or subordinated before closing.
SBA application tips. Give your lender the complete supply agreement, any incentive or image funding agreements and the marketer’s name early so the directory match can be confirmed. Order title work early to find prior recordings. Build projections from gallons, margins and inside sales, and be ready to explain any planned rebrand. See SBA loans for gas stations on the broader requirements; our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
How Lenders Evaluate a Citgo Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and typically require personal guarantees from significant owners.
Net worth and liquidity. Even without a brand-set minimum, lenders reviewing a Citgo franchise loan want to see a meaningful equity injection plus reserves left over after closing to cover fuel price swings, equipment repairs and slow months.
Industry and management experience. Prior experience running a gas station, convenience store or similar retail operation is one of the strongest parts of an application. First-time owners can strengthen a request by hiring an experienced manager or completing hands-on training before closing.
Business plan and projections. Projections should break out fuel gallons and margin, inside sales and gross margin, and any car wash, food service or other income. For a rebrand, explain what changes with the Citgo flag, such as loyalty traffic or card acceptance, without assuming dramatic gains.
The supply agreement. Lenders read the term, termination rights, volume commitments, image obligations, incentive repayment terms and assignment rights. A short remaining term or heavy clawback exposure can reduce the amount a lender is willing to advance.
Real estate and environmental review. Expect an appraisal, a title review and environmental due diligence, often starting with a Phase I environmental assessment and moving to further testing if concerns appear. Our guide to gas station environmental due diligence explains the process.
Historical financials for existing stations. For a purchase, lenders typically ask for several years of tax returns and profit and loss statements, plus fuel volume reports and supplier statements to confirm gallons and margins.
Fuel Systems, Equipment and Environmental Considerations
A station’s fuel system is both its most valuable equipment and its biggest source of risk. Lenders and buyers look closely at tank age and construction, leak detection records, compliance inspections and any history of releases. A site with recent tank upgrades and clean records generally finances more easily than one with aging equipment and unanswered questions.
Planning for upgrades. Brand image refreshes, dispenser replacements, payment terminal upgrades and tank work tend to come in waves. Build them into the purchase financing when possible, or plan a separate equipment loan so the station is not starved of cash after closing.
Inside the store. Coolers, freezers, food service equipment, security cameras and point-of-sale systems keep the store competitive. Because inside sales often produce a large share of profit, lenders like to see an owner who invests in the store as well as the forecourt.
Multi-Site Growth
Many Citgo stations belong to owners and marketers with more than one location. Growing from one station to several usually means buying existing stations one at a time, rebranding stations already owned, or building new sites in markets the marketer serves.
Financing a portfolio. Once you have operating history, lenders can underwrite the combined cash flow of all your stations. Owners often finance each acquisition separately at first, then consolidate or refinance as the portfolio grows. Lenders will want consolidated financial statements, a clear management structure and evidence that each supply agreement is current.
Real-World Scenarios
Buying a Citgo station with the real estate. A buyer with convenience store management experience finds an operating Citgo station whose owner is retiring. The buyer uses an SBA 7(a) loan to purchase the land, building, fuel system and business, signs a new supply agreement with the existing marketer and keeps a working capital reserve for the first months of fuel purchases.
Rebranding an independent station. An owner of an unbranded station decides to switch to Citgo to gain loyalty traffic and card acceptance. The marketer offers image funding tied to a supply commitment, and the owner finances new dispensers and payment terminals with equipment financing. The lender reviews the incentive repayment terms as part of underwriting.
A title surprise. During due diligence on a station purchase, the title report shows a document recorded by a prior supplier. Because the directory notes bar the distributor from filing against SBA real estate collateral, the lender requires a release before closing, and the buyer builds extra time into the schedule.
A new-build station. An experienced multi-site operator buys land at a growing interchange and builds a new Citgo station with a larger store. The land and building are financed through an SBA 504 loan, with separate financing for equipment and opening working capital.
Common Mistakes to Avoid
- Assuming the Citgo brand sets one standard deal, when terms depend on your marketer and agreement
- Skipping a close read of incentive repayment and early termination clauses
- Starting environmental due diligence late and running out of time before closing
- Ignoring recorded supplier documents that conflict with the SBA directory notes
- Projecting fuel margins that only rise and never fall
- Underestimating the working capital needed for fuel loads and card settlement timing
- Neglecting inside-store sales, which often drive profit more than fuel
Owners can avoid more pitfalls by reading the gas station loan mistakes we see most often.
Next Steps to Finance Your Citgo Franchise
Step 1: Choose your path. Decide whether you are buying an operating station, rebranding a site you own, building new or leasing from a marketer.
Step 2: Talk with the brand or a marketer. Identify the marketer that supplies your area, or ask the brand about its licensing program if you source your own fuel, and request the full agreement and any incentive terms.
Step 3: Review the agreements with advisors. Have an attorney and accountant review the supply agreement, image requirements, incentive terms and any lease.
Step 4: Speak with a financing specialist early. Learn how lenders will view the station, the supply terms and your experience before you sign a purchase contract or commit to a rebrand.
Step 5: Complete due diligence. Order environmental reports, title work, an appraisal and equipment inspections, and verify fuel volumes and margins with supplier statements.
Step 6: Apply for financing and coordinate approvals. Submit your loan request with personal financial statements, tax returns, projections and the supply agreement, and keep the marketer’s approval timeline aligned with your lender’s.
Step 7: Close and transition. Schedule image work, fuel deliveries, staffing and point-of-sale changes so the station stays open and supplied through the ownership change.
Citgo Franchise Loan FAQs
Is Citgo a franchise?
Not in the traditional sense. Most Citgo stations are independently owned and operate under branded supply agreements with a marketer, or under a brand licensing arrangement, rather than a classic franchise agreement with a disclosure document and published investment range.
How much does it cost to open a Citgo station?
There is no single published figure. Costs depend on land, construction, the fuel system, store size, image work and working capital, and on whether you buy, build or rebrand. Get quotes and the supply terms for your specific site before setting a budget.
Is there a Citgo franchise fee or royalty?
Station owners generally do not pay a restaurant-style royalty. Brand obligations, image costs and any incentive terms are set out in the supply or licensing agreement, so review those documents for the actual costs of your deal.
Can I get an SBA loan for a Citgo station?
Yes, Citgo is listed on the SBA Franchise Directory under five codes tied to fuel distributor agreements. Your lender will confirm that your marketer’s agreement matches a listed entry and that the deal complies with the directory notes.
What do the SBA directory notes for Citgo mean?
They mean the distributor generally may not record anything against the real estate securing an SBA loan. One listing allows an SBA-approved mortgage or deed of trust only for money the distributor advances for site improvements, and that lien must be subordinate to all SBA financing.
How much can I borrow with an SBA 7(a) loan?
The SBA 7(a) program maximum is currently $5 million, and program rules can change. The amount you qualify for depends on the station’s cash flow, collateral, your equity and the lender’s review.
Can I finance dispensers and tanks separately?
Often, yes. Dispensers, tank monitoring systems, payment terminals and store equipment can usually be financed with equipment loans or leases, either at purchase or later when upgrades are needed.
What net worth or liquid capital do I need?
Citgo does not publish a single minimum for station owners. Your marketer, the brand in a licensing deal and your lender will each review your finances, and lenders generally want a solid equity injection plus reserves after closing.
Can a first-time owner get a Citgo franchise loan?
It is possible, but lenders weigh experience heavily. First-time owners improve their chances by buying an operating station with a clean financial history, hiring an experienced manager and keeping strong reserves.
Does Citgo offer financing?
Brands and marketers sometimes offer image funding or rebates tied to a supply commitment rather than traditional loans. Treat any incentive as an obligation that may have to be repaid if you leave the brand early, and share its terms with your lender.
What documents will a lender need?
Expect to provide personal and business tax returns, a personal financial statement, the purchase agreement, the supply agreement, fuel volume and margin reports, environmental reports, a business plan with projections and a resume showing your experience.
Can I buy more than one Citgo station?
Yes. Many owners grow by adding stations over time. Lenders look at the combined cash flow of the portfolio and the supply agreements for each site when financing additional locations.
Final Thoughts
Financing a Citgo station is about the site, the supply agreement and the operator as much as the brand. Buyers who understand their marketer’s terms, respect the SBA directory notes, start environmental work early and keep healthy reserves give themselves the best chance at a smooth closing, whether they are buying their first station or adding to a portfolio.
US Professional Funding helps station owners and buyers finance acquisitions, real estate, equipment, working capital and refinancing for branded fuel locations. Learn more about our franchise financing programs and gas station and convenience store financing.
