Sba Loans For Self Storage Facilities

Once you re up and running you can focus on your operation instead of wondering how you ll make your next balloon payment.

Sba loans for self storage facilities.

For more information check out our page on refinancing debt. 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. Buying an existing self storage facility. Sba loans are available to purchase refinance expand or build a self storage or mini storage facility.

Refinancing a self storage facility. A look at the self storage business. 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. Renovations equipment closing costs and soft costs can be financed as part of the total project cost.

There are specific conditions for the loan to be used this way. 90 self storage financing possible with or without experience. 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. With this loan you can build anything from basic self storage units to top of the line air conditioned facilities.

Our self storage loan team will work with you from day one to get your money. Rv and boat storage facilities are also eligible as are larger commercial storage units and in some cases cold storage warehouses. 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. The funds from the sba 7 a can be used to refinance an existing loan.

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. 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. 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. Self storage continues to be one of the fastest growing segments of commercial real estate.

Sba loans are especially good for self storage facilities because you can finance all of the construction interest and up to two years of loan payments.