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SBA Express Loans for Self Storage Companies

As of 2018, there are more than 20,000 self-storage and warehousing businesses in the U.S., earning an estimated $25 billion in revenue and employing almost 240,000 people. From 2013 to 2018, the industry grew at a healthy average of 4.3% per year, a trend that’s expected to continue for the next several years. That means that it could be a great time to buy or expand your self-storage business; and, if you need affordable financing to do so, an SBA Express loan could be a great choice.

How SBA Express Loans Can Help Self-Storage Facilities

SBA Express loans can provide businesses up to $350,000 in financing, which they can use for working capital, purchasing equipment, and buying or renovating commercial real estate.

Self-storage businesses commonly use SBA Express loans for purposes including:

  • Renovating a building: If you’ve purchased a regular warehouse, or even a former office building, and you want to convert it to a self-storage facility, an SBA Express loan could be a smart way to do so.

  • Funding working capital: Paying employees, keeping the lights on, and marketing your self-storage business isn’t cheap— but an SBA Express loan can help give you some of the funds you need to keep on trucking.

  • Acquiring an existing business: Whether you want to buy a self-storage facility for the first time, or you want to branch out by expanding your self-storage facility to a new location, an SBA Express loan can help.

SBA 504 and SBA 7(a) Loans Can Also Be Great Options for Self-Storage Facilities

SBA Express loans are one of the fastest and most efficient ways to get SBA financing for a self-storage business, but they’re not the only game in town. The SBA also offers other great loan programs, like the SBA 504 loan. The 504 loan is specifically intended for the construction, acquisition, and renovation of commercial real estate, as well as the purchase of heavy equipment. SBA 504 Loans offer up to $5.5 million in financing, with interest rates hovering around 5%.

Another great loan option is the SBA 7(a) loan, which is currently the SBA’s most popular loan program. While it takes somewhat longer to be approved for than an Express loan, the 7(a) loan can provide borrowers up to $5 million in financing, which can be used for working capital, inventory, equipment, and commercial real estate. In 2017, the SBA guaranteed more than $25 billion of 7(a) loans througout the U.S.