SBA 7(a) Loans

Types of Financing

  • Purchases
  • Refinance
  • Construction / Improvements
  • Expansion
  • Start-Up (Business without financials)

Loan Amounts: $100,000-$5,000,000

Terms: 7, 10, 25 Years (depending if working capital, business only or real estate)

Interest Rate: Prime + .0% -2.75% (Varies by credit risk)

Loan To Value: 50 – 90%

Prepay Penalties: 1st Year 5%, 2nd Year 3%, 3rd Year 1%

Fees:

  • None to minimal lender fees
  • Due Diligence Deposit (Appraisal, Environmental, Title work)
  • Customary closing costs
  • Construction fee, if applicable, to offset monitoring costs
  • SBA charges a fee of approximately 3.5% (depending on loan amount and percentage of guarantee, usually 75%) This is 3.5% of the guaranteed PORTION, not 3.5% of the loan.

Eligibility:

  • US Citizen or permanent resident alien status
  • Good credit/character
  • Reasonable financial statement or credible projections
  • Business must meet SBA size standards
  • Collateral: First lien on land, building, inventory and equipment. Additional outside collateral may be necessary if the loan is not 100% collateralized.

It has only been in the past few years that self-storage facilities have been eligible for SBA financing. SBA financing may be a better option for many first time buyers and / or owners of self-storage facilities, or those looking to construct a site. In certain situations, SBA loans may be available to those who might not qualify for conventional financing. 

To pre-qualify for financing, download the following forms and provide the following information:

  1. Loan Application  (pdf)  (Word) or Apply Online
  2. Personal Financial Statement  (pdf)  (Word)
  3. Resume  (pdf)  (Word)
  4. 2013 Year End Business Financials
  5. 2014 Year-To-Date Business Financials

This is a general guideline for documents normally needed depending on the type of financing being applied for.