SBA lenders approved 293 7(a) loans to lessors of miniwarehouses and self-storage units (NAICS 531130) from October 2023 to June 2026, $455,128,200 from 68 lenders. The median loan was $1,175,000, nearly eight times the national $150,300, at a median rate of 8.75% against 10.25% nationally, over a median term of 300 months. Start-ups were 35.8% of loans and acquisitions 26.3%, and another 168 loans went through SBA 504. Lenders underwrite occupancy and rent history, lease-up plans for new space, local supply, property taxes after a sale, and the real estate appraisal.
| Measure | Lessors of Miniwarehouses and Self-Storage Units | All industries |
|---|---|---|
| SBA 7(a) loans approved | 293 | 162,355 |
| Median loan | $1,175,000 | $150,300 |
| Middle half of loans | $531,200 – $2,056,000 | $50,000 – $500,000 |
| Loans of $1 million or more | 53.2% | 12.9% |
| Median rate at approval | 8.75% | 10.25% |
| Middle half of rates | 8% – 9.25% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 77 (26.3%) | 16,849 (10.4%) |
| Median acquisition loan | $1,155,000 | $693,000 |
| Lenders that made these loans | 68 | 1,648 |
| SBA 504 loans (real estate, equipment) | 168 | 16,714 |
Approvals FY2024 – FY2026 to date (1 Oct 2023 – 30 Jun 2026), cancelled loans excluded. Source: SBA 7(a) and 504 FOIA loan records, as of June 30, 2026.
- SBA 7(a) loans approved
- 293 (Oct 2023 – Jun 2026), from 68 lenders
- Median loan
- $1,175,000 (national $150,300)
- Median rate at approval
- 8.75% (national 10.25%)
- Median term
- 300 months
- Start-ups / acquisitions
- 35.8% / 26.3% of loans
- SBA 504 loans
- 168, median $1,278,000
A real estate loan with an operating business attached
SBA does not lend to passive real estate investors. A self-storage facility qualifies because renting units, collecting from tenants, running auctions on abandoned units and managing the site is an operating business, and lenders will want to see the owner or the owner's company running it. Where the property sits in one company and the operations in another, the structure has to be set up the way SBA allows; see propco and opco structures.
Everything else about these loans looks like real estate. The median term was 300 months, the 25-year maximum SBA allows for real estate, and only 4.1% of loans were SBA Express. The median facility supported 2 jobs: a manager, sometimes remote management and kiosks, and an owner. That makes owner-dependence a smaller worry here than in most small businesses, and the building a larger one.
The figures
| Figure | Self-storage | National | Reading |
|---|---|---|---|
| Median loan | $1,175,000 | $150,300 | Nearly eight times the national median |
| Middle half of loans | $531,200 to $2,056,000 | — | Even the smaller loans are sizable |
| Loans of $1 million or more | 156 (53.2%) | — | More than half |
| 90th percentile | $3,825,000 | — | The largest tenth reach toward the 7(a) limit of $5 million |
| Median rate | 8.75% | 10.25% | A point and a half lower; middle half 8% to 9.25% |
| Acquisition share | 26.3% | 10.4% | 77 purchases, median $1,155,000 at 8.25% |
| Start-ups | 35.8% | — | New construction and conversions |
| Fixed-rate share | 9.2% | — | Nine loans in ten float over 25 years |
The low rate is the product of size and collateral. At least three loans in four are above $350,000, where SBA caps variable rates at the base rate plus 3%, and a loan secured by an appraised building tends to price well under that cap. The tight middle half, 8% to 9.25%, reflects that. The flip side is that nine in ten loans float for 25 years; see fixed vs variable rates and SBA loan rates.
The 293 loans came from 68 lenders, so the lenders active in storage tend to make several. A storage file does best in front of lenders that already read rent rolls.
New facilities and lease-up
More than a third of storage loans went to start-ups: facilities being built, expanded or converted from other buildings. A new facility opens empty and fills over time, and the lender is financing that lease-up period as much as the construction.
- The feasibility study. Lenders want an independent market study of demand, existing and planned supply within the trade area, and achievable rents. A projection that assumes the facility fills faster than the market study supports is the first thing cut.
- Carrying the lease-up. Until occupancy covers debt service, someone pays the difference. The loan may include working capital to carry it, but the lender will also look at the owners' liquidity outside the project.
- Equity. SBA requires an equity injection of at least 10% of total project costs for a start-up. On an SBA 504 loan, a new business puts in 15% rather than 10%.
- Construction risk. The contractor, the budget, contingency and permits are all underwritten. Cost overruns come out of the owner's pocket, not the lender's.
In storage, the lender is betting on the lease-up curve. A conservative, sourced projection gets further than an optimistic one.
How lenders read a facility's income
| Measure | What it shows | What the lender asks for |
|---|---|---|
| Physical occupancy | Share of units or square feet rented | Monthly rent roll for at least two years |
| Economic occupancy | Rent actually collected against rent possible | Concessions, discounts and bad debt, which physical occupancy hides |
| Street rate vs in-place rent | Rents for new tenants against what existing tenants pay | The rent-increase history on existing tenants |
| Delinquency and lien sales | Tenants behind, and units taken to auction | Aging of past-due rent; auction history |
| Ancillary income | Tenant protection plans, truck rental, boxes and locks | Whether it recurs and how much margin it carries |
| Operating expenses | Payroll, management, insurance, utilities, property tax | Taxes as they will be after the sale, not before |
Property tax deserves its own line. In many places a sale triggers reassessment at the purchase price, and a facility bought from a long-time owner can carry a much higher tax bill in its first year under the buyer. Lenders underwrite the tax the buyer will pay. Seasonality is mild compared with most businesses, but move-in activity peaks in warmer months, and lenders read occupancy across a full year.
Buying an existing facility
77 loans financed a change of ownership, at a median of $1,155,000 and 8.25%. Because the price is mostly real estate, several SBA acquisition rules land differently here than in an operating business. The detailed guide is financing a self-storage facility acquisition.
| SBA rule | How it plays out in a storage purchase |
|---|---|
| Business valuation where the amount financed, less appraised real estate and equipment, exceeds $250,000 | The real estate appraisal carries most of the value; a separate business valuation turns on how much of the price is above it |
| From 1 October 2026, amortization over no more than 10 years except the real estate share | Most of a storage loan is real estate and keeps up to 25 years; any goodwill share is on a shorter clock |
| From 1 October 2026, debt service coverage of 1.25x on historical results | A facility still leasing up, bought on its future, may not show it; the price has to fit the history |
| From 1 October 2026, a quality of earnings report on acquisitions of $3 million or more excluding real estate | Often not triggered, because most of the price is real estate; financial due diligence is still required |
| Equity injection of at least 10% of total project costs | Applies in full; a seller note counts toward half of it only on full standby for the life of the loan |
The seller may consult for up to 12 months (up to 24 months under SOP 50 10 8.1 from 1 October 2026), which in storage is usually more than enough: the handover is the management software, the manager and the vendor contracts. See buying a business with its real estate.
7(a), 504, or both
Storage used SBA 504 heavily: 168 loans with a median of $1,278,000, against 293 7(a) loans. 504 typically finances 50% from a bank, 40% from a CDC and 10% from the borrower, with the CDC's share up to $5 million, and the borrower must occupy at least 51% of an existing building or 60% of new construction; the 168 approvals show lenders treat a storage operator running the whole facility as its occupant. 7(a) is more flexible about what it funds, including working capital and goodwill, up to $5 million with SBA's guaranty capped at $3.75 million. Since July 2026 the 504 and 7(a) limits are counted separately, so a project that uses both no longer has one program eat into the other's limit. See SBA 7(a) vs 504 and SBA 504 vs a conventional commercial mortgage.
Some storage owners refinance once a facility stabilizes. On 7(a) loans of 15 years or more, prepaying more than 25% in any of the first three years costs 5% of the prepaid amount in year one, 3% in year two and 1% in year three; a lease-up plan that ends in a refinance should time it. See SBA's prepayment penalty and refinancing with SBA 504.
Preparing a storage file
SBA's list: business tax returns for 2–3 years, a P&L and balance sheet with a year-to-date P&L through last month-end, a debt schedule with copies of notes being refinanced, and personal tax returns and a personal financial statement for each owner of 20% or more. A purchase adds the facility's latest full year of figures and the letter of intent.
For storage, add monthly rent rolls for two years, the unit mix with street and in-place rents, delinquency and auction history, the property tax bill and an estimate after reassessment, the management agreement or staffing plan, and for new construction the feasibility study, budget and contractor. Transparent builds that into a lender package with the rent roll and lease-up read the way an underwriter reads them, and takes it to the 278 lenders in its book that write SBA 7(a) and 504. See how we underwrite.
Common questions
- How large is a typical SBA loan for self-storage?
- The median 7(a) loan to self-storage facilities from October 2023 to June 2026 was $1,175,000, with the middle half between $531,200 and $2,056,000. Loans to buy an existing facility had a median of $1,155,000.
- Can SBA finance a new self-storage facility?
- Yes. 35.8% of storage loans went to start-ups. SBA requires an equity injection of at least 10% of total project costs, and lenders underwrite a market study, the construction budget and how the owners will carry the lease-up.
- Is self-storage a passive business SBA won't finance?
- No, when the owner runs it. Renting, managing and collecting on units is an operating business. SBA will not finance a passive real estate investment, so the owner or the owner's company must operate the facility.
- Should I use SBA 7(a) or 504 for a storage facility?
- 504 suits the real estate itself, with a bank first lien and a CDC second. 7(a) is more flexible and can include working capital and goodwill. Since July 2026 their limits are counted separately, so using one no longer reduces what is left under the other.
- Will my property taxes change when I buy a facility?
- In many places a sale triggers reassessment at the purchase price. Lenders underwrite the taxes the buyer will pay, not the seller's bill.