Using the SBA 7(a) for a Self-Storage Facility


Self-storage revenue in the United States is projected to grow at an average annual rate of 2.9% through 2020. Growth is good news for lenders and borrowers, and now might be the time to take on a business mortgage.

The SBA 7(a) loan can be used for commercial real estate; the straightforward eligibility requirements make it appealing to business owners. Banks, credit unions, and traditional lending institutions offer the SBA 7(a), and 75% of the money is guaranteed for loans of up to $5 million.

Practically any legitimate business purpose is covered by the SBA 7(a). Here’s a look at some of the things you can do with the loan:

  • New construction of a self-storage facility. Any of the costs associated with new construction can be covered by the SBA 7(a): bay doors, large concrete plots, alarms and security gates, etc.
  • Refinancing a self-storage facility. The funds from the SBA 7(a) can be used to refinance an existing loan. There are specific conditions for the loan to be used this way; for more information, check out our page on Refinancing Debt.
  • Buying an existing self-storage facility. Self-storage facilities are purpose-built, and you may find it cheaper to buy a vacant site rather than to build. The SBA 7(a) allows for the purchase of commercial real estate and land.

Helpful Resource: The Top Uses for the SBA 7(a) Loan

SBA7a.Loans works with business owners on other government-backed loan programs as well. The SBA 504 is another loan that's larger than the SBA 7(a). The 504 can have more favorable terms, including a lower amount down. Typically, the SBA 504 is used with a traditional loan, with the costs split between the two.

Contact SBA7a.Loans today to set up a risk-free consultation.

Or, simply click the button below to apply for an SBA loan quote with our partners at lendio!