Building or Buying Self-Storage? 7 SBA Loan Questions to Ask Before You Commit

By Marc Goodin

How much cash will you need to close and carry your self-storage project through construction and lease-up?

Before you commit to a property or finalize your construction budget, get clear answers about your financing. Your down payment is only one part of the conversation. You also need to understand personal guarantees, seller financing, interest rates, loan fees, and which project costs your lender will finance.

Join us live with  Bishesh Shrestha, Senior SBA self-storage lender from Live Oak Bank on October 15, 2026, at 11 a.m. Eastern Time. We’ll discuss SBA financing for self-storage, the updated lending standards, and the questions to bring to your banker.

Register for the Live SBA Seminar:  www.StorageAuthorityFranchise.com

Why this conversation matters now

The SBA’s updated lending procedures OP 50 10 8.1, took effect October 1, 2026. Our seminar will help you understand which changes apply to your plans to build or buy a self-storage facility.

Whether you are evaluating your first site or preparing to acquire an existing facility, start with these seven questions.

1. What changed in the SBA rules—and which changes affect my project?

Ask your lender to explain the current requirements for your specific transaction. Which SBA loan program are we considering? What requirements apply to new construction versus an acquisition? And which conditions come from SBA rules versus the lender’s own underwriting standards?

2. Will my acquisition require a quality-of-earnings report?

Note this changes by size of the loan and Indusrty. We have read conflicting reports if this can be waived for self storage.

Certain acquisition transactions with a business purchase price of $3 million or more require an independent quality-of-earnings report under the updated procedures. Don’t assume the total facility purchase price alone determines whether you need one.

Ask your lender: Does my transaction qualify? Who obtains the report? What will it cost, and how much time should I allow?

3. How can seller financing fit into my deal?

If the seller is willing to finance part of the purchase, ask how that note must be structured. Can it count toward my required equity contribution? When can payments begin? What term and standby conditions will the lender require?

This could be you!

                                                   

4. Which owners or partners must personally guarantee the loan?

Before you finalize your ownership structure, understand who must guarantee the debt. Ask how ownership percentages, transaction structure, and lender requirements affect each partner’s obligations.

5. When and how is my interest rate established?

Ask whether the rate is fixed or variable, how it is calculated, when it is set, and whether it can change before closing. Also ask your banker to show you how a higher rate would affect your projected payments and cash flow.

6. How much construction contingency should I include?

Your financing plan needs to address more than the base construction estimate. Ask what contingency the lender requires, which costs it applies to, and how cost overruns would be funded. Can unused construction contingency funds be used for carring cost?

7. Which project costs can and cannot be financed?

Bring your complete project budget to the discussion. Ask about land, design, engineering, permitting, construction, startup expenses, interest during construction, and operating cash needs during lease-up.

The key question: How much cash will I need beyond the costs covered by the loan?

Bonus: What fees should I budget for?

Ask for an itemized estimate of lender fees, SBA guaranty fees, and third-party costs—and ask which can be financed versus paid out of pocket. Also request a loan-document checklist so you can begin gathering the required information.

Bring your questions to our live SBA seminar

Join  Garrett Byrd and SBA lender Live Oak for a discussion focused on financing your self-storage project.

Date: October 15, 2026

Time: 11 a.m. Eastern Time

Location: Live online

We’ll explore the updated SBA standards, financing questions for construction and acquisitions, and how to prepare for your lender conversation.

You do not need to have every detail of your project finalized to start asking the right questions.

Register for the Live SBA Seminar  Now www.StorageAuthorityFranchise.com