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.
At SBA7a.Loans, we don’t just help business owners get 7(a) loans— we also help with other SBA loans, such as the popular SBA 504 loan. The 504 loan, which can be used for commercial real estate, heavy equipment, and other fixed assets, usually has lower down payments and interest rates when compared to the 7(a) loan.
Contact SBA7a.Loans today to set up a risk-free consultation.
Or, simply click the button below to apply for a free SBA loan quote!