available through SBA lenders, credit unions, and banks, as well as alternative lenders. You’ll learn about the financing options available from these three types of lenders in the sections below.
SBA Loans
The SBA offers self-storage financing through its SBA 7 (a) and 504 loan programs. The structure of SBA 7 (a) and SBA 504 loans for self-storage financing is the same as it is for any other permitted use.
The SBA partially guarantees the loan, which is made by a financial https://rik88.bet/
https://1go88.vip/ institution. Because of this partial guarantee, lenders can make SBA loans to applicants who would otherwise be ineligible. However, because of the low-interest rates on SBA loans, the application procedure is quite competitive.
Purchase property, extend or repair an existing self-storage facility, or restructure existing debt using an SBA 7(a) or 504 loan.
Credit Union and/or Bank Loans
A credit union or bank can help you fund self-storage projects with a line of credit, a regular loan, or a construction loan.
It’s worth mentioning, however, that many credit lines have limit amounts ranging from $100,000 to $250,000. Depending on the scope of your self-storage project, you may require a higher sum to fund it.
In addition, a company line of credit is typically used for short-term financial requirements. The majority of credit lines have terms of seven years or less. That means you’ll have to pay off your line of credit promptly, which some borrowers may not be able to do. This will, of course, be less of an issue if your self-storage project is tiny.
Credit union or bank business loans are substantially mo