SBA has higher interest rates & higher fees. Why use them?

Using other peoples money (OPM) is one fo the reasons people build self storage. An SBA will allow you to borrow more money than a traditional loan. New developers often use an SBA loan because that is the only way they can get started given their finances.

Here are the 3 back up facts:

Unlike traditional loan, an SBA loan will loan you the carrying costs and bank payments until you break even.  This is often $500,000 to $1,000,000 less out of pocket expense up front for you since it is rolled into the loan. Traditional banks typically do not include carring costs in the loan, so you have to have that cash set aside to pay expenses until you break even.

The second reason to use an SBA loan is because they often require less than half the owners cash down payment investment. Large SBA loans typicailly require 15 % down. And banks charge 30 - 50% down.

We wrote the book!

The last reason peoople use SBA loans is because they provide construction loans where many traditioal banks do not do construction loans.

We work with the top SBA lenders. If you would like to to discuss self storge SBA loan with a lender send me an email ( marc@storageauthority.com and I will introduce you.

As CEO of Storage Authority Franchising, Marc Goodin shares his passion, expertise, and unconventional wisdom with busy professionals to help them develop their own self storage while they continue their careers. He owns 3 self-storage facilities  he designed, built, and manages. He can be reached at  marc@StorageAuthority.com or directly at 860-830-6764 to answer your franchising, development, marketing, sales, and operations questions.  His best-selling self-storage books are available at Amazon.