Top Lenders for Self Storage Loans

Last quarterly update: Mar 24, 2024

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Top Self Storage Lenders

RankBankCityState# of Loans Avg LoanAvg Rate
1Live OakWilmingtonNC56 $2,117,7328.7%
2Bank Five NineOconomowocWI17 $1,624,7009.1%
3Huntington BankColumbusOH3 $264,53310.4%

Recent Self Storage Loan Activity

IndustryYearQtr# of Loans Avg LoanAvg Rate*
Lessors of Miniwarehouses and Self-Storage Units2024125 $1,450,8489.4%
Lessors of Miniwarehouses and Self-Storage Units2023426 $1,898,5389.4%
Lessors of Miniwarehouses and Self-Storage Units2023331 $1,696,9689.3%
Lessors of Miniwarehouses and Self-Storage Units2023232 $1,377,7419.1%
Lessors of Miniwarehouses and Self-Storage Units2023127 $1,509,5268.4%
Lessors of Miniwarehouses and Self-Storage Units2022423 $1,313,6177.3%
Lessors of Miniwarehouses and Self-Storage Units2022336 $1,489,8786.4%
Lessors of Miniwarehouses and Self-Storage Units2022243 $1,342,9675.3%
Lessors of Miniwarehouses and Self-Storage Units2022150 $1,264,8184.9%
Lessors of Miniwarehouses and Self-Storage Units2021432 $1,239,8385.0%
Lessors of Miniwarehouses and Self-Storage Units2021387 $1,390,5794.7%
Lessors of Miniwarehouses and Self-Storage Units2021256 $1,327,4204.9%
Lessors of Miniwarehouses and Self-Storage Units2021128 $1,045,9435.0%

* Note that most SBA loans are variable-rate loans. The rates listed above is the initial interest rate at loan closing. Variable-rate SBA loans fluctuate by the fed funds rate set by the Federal Reserve.

With storage coming at a premium in urban centers, a lot of people are choosing to opt for a self-storage unit that provides them with a dedicated space to keep possessions that they can’t necessarily keep at home.

The self-storage business industry has seen considerable growth over the past few years. The supply of new self-storage space in the United States has increased to over 60 million square feet. The demand continues to stay strong, as it did even during the pandemic, highlighting the fact that there’s a greater need now for self-storage units than ever before.

This presents an incredible opportunity for business owners who are looking to establish a relatively passive source of income. As long as they’re able to secure one of the best self-storage loans, they’ll be able to compete in this lucrative market.

Benefits of owning a self-storage business

 A lot of business owners are attracted to the idea of building or acquiring a self-storage business because of its relatively low operating costs. There’s not much upkeep required. Tenants are responsible for their own units, and the business owner’s expenses are largely limited to providing adequate security and general overhead.

Self-storage businesses also have the potential to make more money by selling related products such as cardboard boxes, tape, locks, insurance, and more. Since self-storage units are generally rented out on a month-to-month basis, there’s no long-term lease and the business owner can raise the rent far more easily than they could on a property that had a long-term lease.

There’s not much requirement for continuous oversight as well. A self-storage facility can operate with minimal staff numbers. Significant demand for these facilities means that owners have what’s effectively a passive income generating business.

How to get loans from self-storage lenders

 Setting up or acquiring an existing self-storage business isn’t going to be cheap. A considerable amount of capital may be required for the purchase, construction, renovation, or expansion of self-storage units. Unless the surrounding market is right, conventional banks may not be too willing to extend self-storage business loans.

This severely limits the best self-storage loans that business owners can get. Unless they’re able to demonstrate their credentials to the lenders, which most new business owners will find difficult, they’ll likely not receive a positive response from most self-storage lenders.


Best self-storage loans from the SBA

Whether you’re looking to expand, renovate, acquire or construct a self-storage unit, you can get loans backed by the SBA to take your business to new heights. Depending on the amount of funding required, you can utilize many of the different SBA loan programs to get your business up and running.

When building out a new self-storage business, keep in mind that you will incur significant costs during the construction process. There may also be unexpected costs that you may have to bear. Existing business owners can also obtain these loans if looking to expand their operations.

SBA 7(a) loans for a self-storage business

This is the most versatile loan program that the Small Business Administration offers. It’s suitable for those who are looking to build, acquire or expand a self-storage business. That’s largely due to the higher loan amounts offered through this program.

The maximum loan amount of $5 million can be used to acquire real estate, fund construction, acquire an existing business or purchase additional real estate to expand your current business. The funds can also be used for working capital needs, refinancing existing debt, or buying out a partner from your business.

Remember, the SBA is only guaranteeing a chunk of the loan, the money is disbursed by its lending partners which include banks and other financial institutions. The rates they offer you are subject to the maximum cap defined by the SBA which is the base prime rate + 2.75%.

If the loan is acquired to purchase real estate then the repayment terms can be stretched to 25 years. For every other purpose, it’s 10 years. If the loan proceeds are utilized for different purposes, a blended maturity term can also be negotiated with the lender.

SBA Express self-storage loans

 If your funding requirements are lower, you can also consider an SBA Express loan. Offered under the 7(a) program, you can borrow a maximum of $500,000 through an Express loan. The benefit here is the quick processing and approvals.

It’s a great option for existing self-storage business owners. They can utilize these funds to meet working capital needs and to purchase equipment. Repayment terms for Express loans can be over 10 years with interest rates that include a 6% spread over the prime rate.

How to get SBA self-storage loans connects you to nationwide SBA lenders that offer quick processing of loan applications. Our network includes SBA Preferred lenders. These banks and financial institutions are experienced in the SBA loans process and can help you quickly get the financing you need for your business.

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