Self storage

by a searcher

1 year ago

Have any Searchers used SBA funding for self storage facilities/businesses? It seems much of the value in these facilities is in the real estate they occupy and not as much in their annual revenue. For example a $3,000,000 ask with $170k NOI. Obviously it varies greatly depending on market. This is just an example in my market.

4 likes
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9 comments

lender from Eastern Illinois University

Yes, you can use SBA financing to buy self-storage. The difference is self-storage is viewed as a special-use property and since most of the value is in the property itself, the required down payment is typically 15% instead of 10%. You can also use the SBA 504 loan program for self-storage, which will provide for a fixed rate versus the SBA 7A loan program. The majority of commercial banks participate in the SBA 504 loan program, whereas only a few participate in the SBA 7A loan program. So you have more lender options. Lastly, the SBA 504 loan program does not eat up your SBA availability the same way the SBA 7A loan program does. If you would like to discuss all of your options, I would be more than happy to do so at any time. You can reach me here or directly at --@----.com Good luck.

1 year ago | like reply | 4 likes

searcher from Wake Forest University

Just another recommendation for the team at Live Oak. Great resource.

1 year ago | like reply | 2 likes

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