We have financed millions of dollars in SBA loans for self-storage facilities since SBA began allowing it.
All of them have been done as a SBA 7(a) loan.
Borrowers typically have two SBA loan options-
-the SBA 7(a) loan
-the SBA 504 loan
The SBA 7(a) loan seems to be a better fit.
Why? A complicating factor of the SBA 504 program is that it has a job creation provision. The requirement that borrowers create jobs does not seem to work well for self-storage operations.