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Last updated on Feb 8, 2023
2 min read

SBA 7(a) Loans

SBA 7 (a) loans are a popular financing option for self-storage businesses.

In this article:
  1. SBA 7 (a) Loans for Self Storage
  2. Properties
  3. SBA 7(a) Loan Program Highlights:
  4. 2022 Key Eligibility Criteria for SBA 7 (a) Loan Borrowers 
  5. Get Financing
Start Your Application and Unlock the Power of Choice Experience expert guidance, competitive options, and unparalleled industry expertise.
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$5.6M offered by a Bank at 6.1%$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1.4M offered by a Credit Union at 6.1%Click Here to Get Quotes!

SBA 7 (a) Loans for Self Storage

Properties

SBA 7 (a) loans are a popular financing option for self-storage businesses in need of short- and long-term working capital, want to refinance the current business debt, or looking to buy or expand a facility. The loan product can also be used to implement renovations or technology upgrades.

These SBA loans are typically issued by banks and credit unions and partially secured by the SBA. The SBA usually guarantees 50% to 90% of the loan amount taking into account the loan size and the borrower’s qualifications. 

Borrowers can take up to $5 million with term lengths extending to 25 years. In case the loan is paid off in the first three years, prepayment penalties are necessary. However, it’s possible to prepay up to 25% per year without a penalty.

SBA 7(a) Loan Program Highlights:

  • Loan Size: Up to $5 million

  • Loan Term: Terms of up to 10 years for working capital and up to 25 years for real estate

  • Interest Rates: Interest rates between 6.25% and 8.75% (as of May 2022), depending on loan size and term

  • Credit Score Requirement: A score of around 680 is typically required

  • Down Payments: Generally requires a 10% to 20% down payment

  • Timing: SBA 7(a) loans can be approved in between one and 10 days, depending on the lender

  • 2022 Key Eligibility Criteria for SBA 7 (a) Loan Borrowers 

    To qualify for a 7(a) loan, an investor must: 

    • Operate as a for-profit business with existing assets or business plans in the U.S.

    • Be considered a small business as outlined by SBA

    • Have invested equity

    • Try alternative financing options, including personal assets, before looking for financial assistance

    • Be able to prove a need for a loan

    • Use the fund for a solid business plan

    • Not be behind on any existing debt obligations to the U.S. government 

    • Back to Financing Options

    In this article:
    1. SBA 7 (a) Loans for Self Storage
    2. Properties
    3. SBA 7(a) Loan Program Highlights:
    4. 2022 Key Eligibility Criteria for SBA 7 (a) Loan Borrowers 
    5. Get Financing

Getting commercial property financing should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

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Self-Storage Loan is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Multifamily Today, Commercial Real Estate Loans, SBA7a Loans, CMBS Loans, Apartment Loans, HUD Loans, HUD 221d4 Loan, HUD 232 Loan, HUD 223f Loan, HUD 223a7 Loan, SBA Express Loans, SBA 504 Loans, and OpportunityZones Help.

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