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By 2030, the Department of Energy estimates that about 33 million electric vehicles (EVs) could be on U.S. roads. They're no longer a niche part of the car industry; they're a significant part of it. As the popularity of EVs continues to go up, there's an opportunity for a secondary business to rise with it: owning and operating EV charging stations.
For the past few years, my team and I at Clarify have been helping an increasing number of entrepreneurs in this specific field get financing for their small and midsize businesses (SMBs). Most recently, I had two business partners come to me for advice on how to get financing for a large installation project.
One a truck fleet operator and the other a gas station chain owner, the duo wanted to put in eight DC fast chargers (the fastest and most expensive commercial-grade chargers) at one of the partners' public gas stations near a major highway.
The project was going to cost about $1 million, which they planned to partially cover via the National Electric Vehicle Infrastructure (NEVI) Formula Program. That wouldn't cover all of it, though, so they wanted to know where to turn for the best possible financing options.
In the end, my team and I at Clarify were able to help the business partners get equipment financing and a business line of credit. But there were several ways to go about this funding. I'm going to break down the common associated cost categories for EV charging station businesses, along with which types of financing I recommend for each of those categories. I'll also explain what lenders will want to see to get approved and, when you're ready, how you can apply.
| Best for | Typical amount | Typical term | Rate / estimated cost | Speed to funding | |
|---|---|---|---|---|---|
| SBA 7(a) loan | Large buildouts, business acquisitions, working capital, and owner-occupied site purchases or improvements | Up to $5 million | Up to 10 years (working capital, acquisition) or 25 years (real estate) | About 9.75% to 13.25% APR (SBA caps the rate at the prime rate plus 3.0% to 6.5%; prime is 6.75% as of July 2026) | Typically 30 to 90 days; a slower option |
| Term loan (short-term or long-term) | One-time, defined costs; Short-term: installation or utility-upgrade costs; long-term: major network expansions or multi-site buildouts | $10K to $5M | Can do short-term loans or long-term loans | APR from 6% | As fast as same day |
| Equipment financing | Purchasing DC fast chargers, Level 2 chargers, and other eligible charging equipment | Up to 100% of equipment cost | 12 to 72 months | APR from 6% and up; equipment = collateral | As fast as 1 to 5 days |
| Business line of credit | Recurring operating costs, repairs, software/network fees, and cash-flow gaps while new stations ramp up | $5K to $5M revolving | 6 to 36 months; payments weekly or monthly | APR starting at 6%; only pay interest on what you draw | As fast as same day once approved |
Note: You may also be able to opt for a conventional commercial mortgage if you're wanting to buy a property for your EV charging station, but those lenders are usually commercial banking divisions of banks, credit unions, or other financial institutions. Clarify Capital does not write conventional commercial mortgages.
NEVI Funding and Private Loans: How To Stack Funding
You don't necessarily have to finance an EV charging project from one source. Larger charging buildouts are often structured using a combination of public funding and private capital, depending on what programs the project qualifies for and how much of the total cost the operator still needs to cover.
One of the biggest federal programs, which I mentioned earlier, is the National Electric Vehicle Infrastructure (NEVI) Formula Program, a federal funding program administered by individual states that can cover up to 80% of eligible project costs.
If you do get NEVI funds, the remaining share can either come out of your own pocket or from non-federal financing sources (like the ones I'm about to explain in the next section). Many EV charging station projects use a combination of NEVI and financing.
| Funding approach | How it works | Best fit |
|---|---|---|
| NEVI | A qualifying project receives funding administered through a state program. Federal NEVI funding can cover up to 80% of eligible costs, subject to federal and state requirements | Projects that meet the state's NEVI priorities and can handle the application, compliance, procurement, and reporting requirements |
| Private Financing | The business finances the buildout without relying on NEVI funding, using options such as an SBA loan, term loan, equipment financing, or other private capital | Operators that need more flexibility, don't qualify for a public program, or don't want to wait through a grant or award process |
| Hybrid | Public funding covers an eligible portion of the project while the operator uses its own cash or allowable private financing for the remaining share and other costs | Larger projects where a grant can reduce the amount the business needs to finance but doesn't cover the entire buildout |
Where EV Charging Station Businesses Use Financing
There are a few ways to get into the EV charging station business. You might partner with an existing charging network through a host or reseller program. Or, you might opt to invest in and operate chargers independently as your own business. Here, I'm focusing on that second path, especially for experienced business owners who want to add EV chargers to their business or expand their offerings. (At Clarify Capital, we don't finance brand new startups.)
If you're going the owner-operator route, something essential to understand is that the actual chargers are only part of the investment cost. These are the five categories EV charging station businesses usually use financing for:
Equipment and installs
Site costs, leases, or real estate
Utility upgrades
Software and networking
Operational working capital
Now I'll dive into each of them a little more deeply and tell you which type of financing I think suits each category best.
Equipment and Installs
As you might know or have guessed, the charging equipment itself is usually one of the largest expenses when it comes to operating EV charging stations. Let's refer back to my business-partner clients for an example.
They wanted to install DC fast chargers, which are generally the fastest chargers but also the most expensive. They're great for putting in public places where people want to be able to charge their vehicles quickly, but each connector alone costs anywhere from $38,000 to $90,000, depending on power output.
The actual installation of each charger is a separate cost, and also a high one. For DC chargers, installation costs can range anywhere from $20,000 to $60,000 per connector. Taken together, that's a total of about $58,000 to $150,000 per port.
My financing recommendation: equipment financing for the charging hardware, SBA 7(a) loan for install or if bundling the equipment and install together
Equipment financing is a type of small business loan designed specifically for buying all types of equipment, machinery, or vehicles. You get it as a lump sum, then pay it each month over a fixed term. There's usually no down payment, and qualifying is also fairly accessible because the equipment itself acts as collateral.
An SBA 7(a) loan is a flexible and partially government-guaranteed loan that can be used for a wide range of purposes. They can go up to as much as $5 million and offer longer repayment terms than many other financing options, although approval typically requires more documentation than online business financing.
Site Costs, Leases, or Real Estate
A good thing in the eyes of many entrepreneurs is that EV chargers don't take up that much space. You need somewhere to put them, yes, but that usually won't mean buying or renting an entire property. Placing them in an existing parking lot, gas station, shopping plaza, or hotel is common.
If you're adding them to a property you already control, you won't have a new property acquisition or lease cost, but you will still need to budget for site preparation (like minor clearing and construction for a portion of the space). If you don't have your own location, you may opt to lease parking spaces or a small portion of land from a property owner. In other cases, larger operators might want to purchase sites specifically for big charging hubs. In any case, I group all of these site costs together.
My financing recommendation: a term loan for site preparation and/or buildout, and an SBA 7(a) loan if you're purchasing eligible commercial real estate
A term loan is a loan that's given as a lump sum of money to be paid back over a specific repayment period (whether it's a short-term or long-term loan will determine this) at a set interest rate. Short-term term loans generally have higher monthly payments but allow you to repay the debt more quickly. Long-term loans spread the cost over more time, often resulting in lower monthly payments but more total interest over the life of the loan.
Utility Upgrades
Separate from the costs of just being where you plan to operate are utility upgrade costs. This is the cost of altering (if needed) the property's electrical infrastructure so it can actually supply enough power to the EV chargers. Think about my client from earlier: he couldn't necessarily install eight high-powered chargers in a gas station parking lot and plug them into the building's existing electrical system. The site may not have anywhere near enough electrical capacity.
It can mean paying for utility and electrical upgrades, such as a larger transformer, increased electrical service, new switchgear, trenching, and additional wiring before the chargers can even go online. This can be a big and often overlooked expense, which is why I have it in its own category.
My financing recommendation: term loan or SBA 7(A) loan
Software and Networking
Most EV chargers use networking and software systems that let operators manage them, collect payments, monitor usage, troubleshoot equipment remotely, and interact with customers. If you use a third-party charging network or management platform, you'll typically have recurring software, networking, and payment-processing fees in addition to the up-front cost of the chargers.
My financing recommendation: a business line of credit
A business line of credit (LOC) is designed for borrowing cash. It gives you access to a pool of funds that you can draw from as needed, pay back, and then redraw from continuously. You only pay interest on that borrowed portion, not on the unused credit. Instead of relying on a personal credit card for expenses, a business line of credit keeps your business and personal finances separate.
Operational Working Capital
Before an EV charging station starts getting regular users and earns more steadily, there's going to be what I like to call an “operating ramp,” that is, a period of time at the start where revenue may not meet your expectations. It takes time for a local community to notice and start to regularly use a new EV station.
Your operating expenses, however, start right away. You may have electricity bills, site lease payments, network and software fees, insurance, maintenance, payment-processing costs, and other expenses to cover regardless of how many drivers use the chargers that month. Having access to working capital is really important so that you can cover these costs while the station builds a consistent customer base.
My financing recommendation: a business line of credit
What Lenders Will Look For
When you're applying for financing options, lenders are going to assess several factors about your business to both make a decision on whether they will lend to you and, if they do, the terms of the loan they're offering. Those factors include:
Credit score and history
Time in business
Business revenue
Business plan
Available collateral or personal guarantee
td Up-to-date business licenses
How To Improve Your Loan Approval Odds
Every lender has its own underwriting criteria. Still, there are a few things you can do to strengthen your application:
Increase your credit score
Improve your cash flow and grow revenue
Separate business and personal finances
Consider a personal guarantee
Reduce existing debt
Match the financing type you apply for to your need
Traditional loans, like SBA and commercial real estate loans, often offer lower rates and longer repayment terms but typically require more documentation and a longer approval process. Revenue-based financing may be faster to fund, but it usually comes with higher borrowing costs and shorter repayment periods.
Why EV Charging Station Businesses Work With Clarify
Clarify Capital's 5.0 Trustpilot rating is the highest in the industry, and we've placed more than $1 billion across 50,000+ small-to-midsize businesses (SMBs).
Clarify matches you across 75+ vetted lenders and can get you a written offer in as quickly as 24 hours. Every applicant works with a U.S.-based lending advisor (not a chatbot or a call center) from application through financing.
Minimum Qualifications
$10,000 in monthly revenue
Your business must earn at least $10K per month in a business bank account.
500+ credit score
You can get approved with any credit score. But the better your credit rating, the better interest rates lenders offer. Your FICO score should be above 500.
Minimum six months in business
Your company should be operational for a minimum of six months. This shows business lenders that your company is sustainable and won't go out of business.
Have a business bank account
Your Clarify advisor will need three or four months of your most recent bank statements to verify income. This is just to see you're actually making $10K+ month in revenue.
Ready To Apply for Financing? Here's How
Step 1: | Step 2: | Step 3: |
|---|---|---|
| It takes about two minutes. You'll need your business's legal name, EIN, time in business, monthly revenue, requested loan amount, owner contact information, and a credit authorization. Apply here. | A U.S.-based Clarify Capital lending advisor reviews the application, runs a soft credit pull (no impact on your score), and requests 3 to 4 months of recent business bank statements. For acquisition financing, expect a deeper request: trailing 12 months profit and loss statement (P&L), balance sheet, tax returns, and the target company's financials. | Clarify works with 75+ vetted lenders and matches your profile to the lender most likely to approve you at the best terms. Approved files often get a written offer the same day. You can sign electronically, complete the ACH setup, and the funds will hit the business bank account as soon as that day for revenue-based options (SBA loans take longer). |
Grow Your EV Charging Station Business
If you're an owner-operator trying to grow and offer EV charging stations, the financing options I described can be a big advantage in getting started.
When you're ready, my team and I at Clarify Capital can help you explore the best financing options for your specific situation. Get started and apply today.
Frequently Asked Questions
Here are answers to common questions I get about financing for businesses that operate EV charging stations.
Can I Start an EV Charging Business?
Yes. You can install and operate your own chargers, add chargers to an existing business or property, or work with an established charging network through a host or reseller arrangement. If you're seeking financing through Clarify Capital, however, your business must already have at least six months in operation and $10,000 or more in monthly revenue; Clarify does not finance startups.
How Profitable Is an EV Charging Station?
Profitability varies considerably based on charger utilization, electricity costs, pricing, site lease costs, network and payment-processing fees, maintenance, and the amount invested in the buildout. A high-traffic location with frequent charger use has a much different revenue potential than a new or lightly used location, so there isn't one reliable profit margin that applies to every EV charging station.
Is Owning an EV Charging Franchise a Good Business?
Owning an EV charging franchise can be a good business if you secure a high-traffic location and attract enough regular users to cover equipment, installation, electricity, and franchise costs. A franchise may provide brand recognition, technology, and operational support, but profitability depends on local EV adoption, competition, available incentives, and the terms of the franchise agreement.
What Does It Cost To Install a Charging Station?
Costs depend heavily on the type of charger and the work required at the site. The U.S. Department of Energy estimates that DC fast-charging equipment costs about $38,000 to $90,000 per connector, with installation adding roughly $20,000 to $60,000 per connector; costs can increase further when a site requires substantial electrical or utility upgrades.
How Does Clarify Capital Protect My Business and Financial Information?
Clarify Capital follows SOC 2 (Service Organization Control 2) security principles designed to protect sensitive business and financial information. This includes safeguards such as secure data handling practices, controlled access to information, and ongoing monitoring to help protect your data throughout the application and funding process.
Michael Baynes
Co-founder, Clarify
Michael has over 15 years of experience in the business finance industry working directly with entrepreneurs. He co-founded Clarify Capital with the mission to cut through the noise in the finance industry by providing fast funding and clear answers. He holds dual degrees in Accounting and Finance from the Kelley School of Business at Indiana University. More about the Clarify team →
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