Sba Loans For Self Storage Facilities

The sba 7 a loan program is an attractive option for self storage owners because it allows them to acquire build and renovate facilities while allowing them to stay independent.

Sba loans for self storage facilities. A look at the self storage business. Self storage construction financing self storage construction loans are possible via the sba real estate loan programs at 90 loan to cost up to approx 9 million 85 loan to cost above 15 million and in some case 80 loan to cost to approx 20 million. Renovations equipment closing costs and soft costs can be financed as part of the total project cost. Once you re up and running you can focus on your operation instead of wondering how you ll make your next balloon payment.

Sba 504 loans enable a self storage owner to purchase renovate construct or refinance commercial real estate with a 10 percent down payment which helps the business retain working capital. The funds from the sba 7 a can be used to refinance an existing loan. With this loan you can build anything from basic self storage units to top of the line air conditioned facilities. This post is primarily about 90 financing.

Rv and boat storage facilities are also eligible as are larger commercial storage units and in some cases cold storage warehouses. 90 self storage financing possible with or without experience. Self storage continues to be one of the fastest growing segments of commercial real estate. How self storage facilities use sba 504 loans sba 504 loans are specifically intended for the purchase and improvement of commercial real estate as well as for the construction of new buildings.

The small business administration sba 504 loan program can help entrepreneurs lock down a facility for their business or help those who are already operating self storage facilities expand. Our self storage loan team will work with you from day one to get your money. This allows you some flexibility with your working capital so you can focus on renting out units rather than being concerned about immediate debt payments. Our self storage loan team can guide you through the process of building buying or improving a facility and help you discover the benefits of owning a self storage business.

Refinancing a self storage facility. A self storage facility is eligible for refinancing as long as the property has been operating under the same ownership for at least two years. Buying an existing self storage facility. There are specific conditions for the loan to be used this way.

Refinancing available in 2016 the sba introduced new rules that enabled borrowers to refinance a conventional loan on self storage properties into an sba 504 loan.