SBA Loans and Financing Options for Self Storage Businesses
The $36 billion Self Storage industry is booming, and the U.S. is leading its growth. In 2015, 9.5% of U.S. households were renting Self Storage units. With 43,317 Self Storage facilities in the U.S. in 2017, the demand will continue to increase. Bloomberg reported that Self Storageuse will continue to grow as the numbers of renters increase and as more baby boomers downsize their living spaces.
With such a forecast, it’s not surprising that Self Storage businesses and eager entrepreneurs are looking to start or expand their businesses by purchasing new property, buildings or technology to meet the demand.
By all appearances, the market is headed in a good direction, drawing more Self Storage businesses to dive into the growth trend. The team at Cornerstone Capital Lending has the perfect mix of experience and expertise to help Self Storage businesses get the funding they need to keep their businesses growing in the right direction.
Here’s your quick guide to securing the right loan for your Self Storage business.
Why Secure Financing for Your Self Storage Business?
Self Storage businesses have several options for expansion and growth. Some businesses may want to buy a property that they are currently leasing. Others may want to refinance or buy new technology to help their business grow efficiently. Businesses that wait until they have the money to pay upfrontoften miss out on time-sensitive investment opportunities.But securing the right loan can help Self Storage businessesget the capital they need, fast.
Before you begin to explore Self Storagefinancing options, ask yourself the key questions:
- What other growth options could help yourbusiness achieve its goals?
- Where will any extra capital go?
- How will your project shape your business over the next few years?
- How haveyour business practices affected your credit score over the past few years?
- Have you discussed all financing options with a trusted lender who has worked with Self Storage businesses before? (If the answer is no, we’re waiting to hear from you !)
Financing options are available for businesses of all sizes, regardless of their histories or individual requirements. And while some loans may fund projects fast, they will often eat up more of your hard-earned profits down the road. Taking the time to find a loan that allows you to keep more capital in the long-term is vital to keeping your project moving forward.A lender can help you explore all options to find a loan that is the best fit for your business.
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Types of Self Storage Financing
Every Self Storage business is unique, with different growth goals, credit scoresand financial history. That’s why Cornerstone Capital Lending offers a wide variety of financing options for Self Storage businesses. Our team can work with you to adjust the terms of your loan so it best fits your project, your current needs and your ideal long-term growth.
Businesses embarking on their first major project can successfully finance with Cornerstone Capital Lending. Leaders in the Self Storage business can find the best options for each individual project.
This article will provide an overview of two of the most common financing options for Self Storage businesses:conventional loans and SBA loans.
SBA 7(a) loans for Self Storage businesses
The most popular SBA financing option is the SBA 7(a) loan. Businesses can secure up to $5 million to finance the following projects or goals:Purchasing or expanding property for Self Storage facilities
- Purchasing an existing Self Storage business
- Purchasing a leased property
- Purchasing new technology for expansion
- Refinancing current debt
Why choose an SBA 7(a) loan?SBA 7(a) loans are popular among qualified Self Storage businesses because they give owners the option to borrow long-term with a lower down payment.
SBA 504 loans for Self Storage businesses
SBA 504 loans are another option for businesses that want to purchase real estate or equipment for their long-term growth. These loans are also known as Certified Development Company loans, or CDC loans. Businesses can take out SBA 504 loans for:
- Purchasing existing buildings or property that is being leased
- Purchasingnew technology or equipment that will expand your Self Storage business
- Purchasing new buildings or renovating current facilities
Conventional loans for Self Storage businesses
Self Storage businesses looking to buy or refinance commercial real estate have the option to take out a conventional loan. Conventional loans apply to owner-occupied multi-use properties.
SBA Financing for Self Storage Businesses
The United States Small Business Association (SBA) was created in 1953 to aid small businesses with guaranteed loans and other services thatpromote sustainable growth. Since its founding, the SBA has funded millions of projects across the nation, and in 2014 alone, it approved more than $19 billion in 7(a) loans.
Because the federal government guarantees SBA loans, banks and lenders can be confident that their loan will be protected. SBA loans have competitive rates that lenders can aid back over a longer term. United States Department of Agriculture (USDA) loans are available for rural businesses that need capital.
Why should Self Storage businesses opt for financing through the SBA? Qualified Self Storage businesses can get a loan for a low down payment at more competitive rates than conventional loans. An SBA loan allows businesses to pay back the loan in the long-term and (7(a) only) reserve extra capital for additional growth and investments.
Along with better rates, guaranteed loansare partially covered in the event that a business can’t pay back the loan. Conventional loans may charge more for the guarantees offered by the SBA. Businesses looking for competitive rates and ongoing opportunities for growth should consider an SBA loan with Cornerstone Capital Lending.
The Loan Financing Process for Self Storage businesses
When you’re ready to take the next step and learn more about if a conventional or SBA loan is right for you, get in touch with a lender you can trust. At Cornerstone Capital Lending, our experts put our clients first. And with a wealth of experience in SBA and Self Storage financing, we can help you get the right loan for your business—hassle-free.
Applying for Self Storage financing for your business
- Fill out this simple form to get your online quote. If you have any questions about the required information, give us a call .
- Review the form and your financing requirements with our team of financial experts.
- Determine if you’d like to proceed with the loan application process.
- Fill out an SBA (or other) loan application. Our consultants will walk you through the process and ensure all your questions are answered.
- Receive your quote quickly (usually within 48 hours). We keep your information secure so you can feel confident every step of the way.
- Fill out a Letter of Intent or Conditional Offer.
- After this, we’llbegin the underwriting process in-house. Our experts will ensure you have the information you need as you gather the required documentation.
- Secure yourloan and begin working on your project or investment. Self Storage businesses typically receive their loans within 45 days of starting the process.
You will need the proper documentation to apply and qualify for an SBA loan. For SBA 7(a) loans, these include business debt schedule, application, finance statements and income statements. This SBA 7(a) checklist can guide you in gathering the documents you need to secure a loan.
For a full list of required documents, reach out to a certified commercial financing expert. Our teamcan lead you through the process from start to finish, quickly and efficiently.
Choosing an SBA lending partner
Choosing the right SBA lender can help you get the SBA loan you want in a timely manner. Research an SBA lender’s experience, lending history and available loan programs before you take the next step. Lenders need SBA certification in order to secure SBA 7(a) orSBA 504 loans.
Small businesses typically find the most success with an SBA lender with the following:
- A streamlined loan approval process
- Low down payment and competitive rates
- Wide variety of SBA and other loans
- Proper certification to administer each loan
- Experience working with Self Storage businesses
The team at Cornerstone Capital Lending is SBA certified, and has more than 40 years of combined experience securing SBA loans for small businesses across industries. We’ve helped businesses of all sizes secure the funding they need.
Take the next step
Whether you are looking to buy or refinance, now is the time to expand your business with SBA financing. The certified lenders at Cornerstone Capital Lending can help find and secure the right loan for your business, fast. Our loans can help you grow your business and preserve your cash flow. Contact us to learn more about conventional and SBA loans for your Self Storage business.
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