The Small Business Administration (SBA) offers two primary loan programs that are particularly beneficial for this purpose: the SBA 7(a) Loan and the SBA 504 Loan.
The SBA 7(a) loan, the most flexible and widely used program, allows for loans up to $5 million with variable interest rates and repayment terms up to 25 years for real estate. These funds can be used for purchasing land, constructing new facilities, renovating existing properties, or converting buildings into self-storage units.
The SBA 504 loan supports economic development and job creation by financing major assets like real estate and equipment. It has two parts: a CDC loan covering up to 40% of the project cost and a private lender loan covering up to 50%, with the borrower contributing at least 10%. The SBA portion can be up to $5.5 million, with fixed interest rates based on Treasury issues. Repayment terms are 10, 20, or 25 years for real estate, making it a favorable option for developing self-storage facilities.
Contact us at www.storageauthorityfranchise.com or kevin@storageauthority.com to learn more about funding your self-storage development project.
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