Storage Authority -Jan. 2018 Newsletter- SBA Lending Updates
- Marc Goodin
- Jan 5, 2018
- 4 min read
January 2018 Newsletter
SBA Lending Updates
The Small Business Administration has issued new Standard Operating Procedures (SOP) for 2018. While there are several changes the major one is the requirement that employees be hired and paid by the owners and owners must have oversight of the employees. Essentially this means that if you decide to go with a management company you can NOT get an SBA Loan.
The difference between the required capital for an SBA loan and a traditional loan can be huge. For new self-storage construction a SBA loan typically requires 10 – 15% down and a traditional bank typically requires 30-40% down, So for a phase one $3,500,000 loan, it means an equity requirement of $400,000 for a SBA loan vs $1,200,000+_ for a traditional loan.
A message from our President
I could list all our vast accomplishments in 2017 and outline our many goals for 2018. It would be impressive but it is not what is going to motivate you to take a leap of faith and start your own business. Instead, I am going to get right to the point, you can make it happen in 2018 but you have to be ready for the journey. As I learned a long time ago: If it is to be it is up to me (and a bunch of smarter people on my team.)
While you are compiling the facts I encourage you to always be learning from the insights and encouragement of others. One of the daily blogs I read is by Seth Godin. Below is a portion of two recent blogs by Seth that may encourage you to make your dreams come true in 2018.
Enjoy the Passage of Time! Marc
No new costs, no new machines, no new resources. Just smarter. Smarter about the process, about the effects, about planning. Smarter about leadership, about management, about measurement. How much is smarter worth? In my experience, smarter is almost always a bargain, something you can buy for a lot less than it’s worth.
The power of the possible
Next year is almost here.
And doing what you did this year probably isn’t going to be sufficient.
That’s because you have more to contribute than you did this year. You have important work worth sharing.
To reach your goals, you’ll probably need more effective and powerful ways to tell your story, get clients, gain market share and serve your audience.
As part of our Dynamic Ease Self Storage Development Series, we help our franchisees around the landmines, including finding land, designing, financing and building a premier self-storage facility and to understand the options and prepare accordingly. _______________________________________________________________ If you want to learn more about Storage Authority Franchise there is a wealth of information on our website www.StorageAuhorityFranchise.com Don’t forget to check out “Why Storage Authority” and our blog/newsroom. Then the next step is to apply on our website or email or call Garrett Byrd (Garrett@StorageAuthority.com or Direct 941-928-1354)
Vendor Highlight
INSOMNIAC Self Service Kiosks are Storage Authority’s approved kiosks.
To be competitive you need to rent and take payments night and day and having a kiosk is not a choice. There are several Insomniac models to choose from to meet your needs and price point. Storage Authority’s National rep, Sheri, is always available to make sure Storage Authority Franchisees get the best pricing and the right model.
Shari Klein Business Development Manager OpenTech Alliance, Inc. | 2501 W. Dunlap Ave., Suite 255 | Phoenix, AZ 85021 Main: 602.749.9370 | Direct: 602.324.8678 | Mobile: 561.777.5099 Email: sklein@opentechalliance.com
If you are not planning on a kiosk you simply do not understand the value and the math. Literally, it will pay for itself in the first year. And then renting just 1- 2 units a year, will pay for the kiosk maintenance and program and the rest is pure profit for you!. No more worries when you have one manager and two clients in the office because the kiosks can take payments and rent!
The INSOMNIAC 900 Kiosk is my favorite. Marc
Self Storage Industry News
Our Co-Founder Marc Goodin’s best-selling book Your Self Storage Planning, Design, Build has been updated for 2018. It shares what it takes to get started including updated development cost, example proforma, how to find land, how to do a mini demand study and more. For your free copy email Marc. Marc@StorageAuthority.com
Self Storage Articles
One of the facilities, at 7102 Bakers Bridge Ave. in Brentwood, TN, sold for $21,485,000, or $301 per square foot, according to Ashley Compton of Nashville, national director of the self-storage group at Colliers International. The other facility, at 6346 Nolensville Road in Nolensville, TN, sold for $16,485,000, or $216 per square foot. Compton brokered the two-facility deal. *Spare foot
After many years of historically low and stable interest rates, borrowers should realistically expect that rates will begin to tick up as the economy continues to improve. Nonetheless, self-storage borrowers have an abundance of options. Barring unforeseen events that would dramatically alter the financing landscape, the window of opportunity should remain open to lock in on low rates with aggressive lenders looking to put money to work. *Inside Self Storage
With Storage Authority on your team, we will help you every single step of the way, from finding land to operations, to driving your revenue year on year. If you have a question we have the answer, we will help get you developed and leased up faster than if you were to go it alone. Team up with the experts to maximize your profits.
ARE YOU READY?
“Our goals can only be reached through a vehicle of a plan, in which we must fervently believe, and upon which we must vigorously act. There is no other route to success.” —Pablo Picasso
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Storage Authority 677 N Washington Blvd. Sarasota FL 34236
www.StorageAuthorityFranchise.com Garrett@StorageAuthority.com 1-941-928-1354
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