The best self-storage loans will have a combination of low rates, long repayment terms, and low down payment requirements. Many of these lenders should also offer quality customer service and flexibility in qualification requirements.
Since the best self-storage loan will depend on how your company intends to use the funds, your qualifications, and other circumstances, we’ve selected lenders with different types of loans. Some examples include Small Business Administration (SBA) loans, commercial real estate (CRE) loans, hard money loans, and fix-and-flip loans.
If you’re wondering where to get self-storage loans, here are our nine picks for 2024:
- Live Oak Bank: Best SBA 7(a) loans for self-storage commercial real estate
- Kiavi: Best short-term financing for conducting repairs and property improvements
- Lendio: Best for multiple SBA financing options
- Grasshopper Bank: Best for SBA 7(a) expertise
- AVANA Capital: Best commercial bridge loan for well-qualified investors
- U.S. Bank: Best conventional bank for CRE and SBA loans
- SBG Funding: Best for easy SBA 7(a) qualification requirements
- CREFCOA: Best for income-producing self-storage units
- Caffrey Loans: Best variety of self-storage loans
Best Self-storage Loans at a Glance
Live Oak Bank: Best SBA 7(a) Loans for Self-storage Commercial Real Estate
Why We Like Live Oak Bank
Live Oak Bank offers competitive loan terms including low rates, long repayment terms, and high loan amounts. As an SBA Preferred Lender, it can also fund loans quicker than many other lenders since it can make final loan decisions without needing separate approval from the SBA. It is highly experienced with these loans, having funded the highest dollar amount of SBA 7(a) loans nationwide last year.
A benefit of working with Live Oak Bank is its ability to create customized financing plans. For instance, although it typically has a maximum loan amount of $5 million on its SBA 7(a) loans, additional funding can be offered by combining it with one of its commercial lending products.
In addition to the qualification requirements listed above, this provider requires a personal guarantee from all business owners who have 20% or more ownership interest in the company. You may also need to pledge personal assets as collateral for the loan. Loans with a term greater than 15 years also carry a prepayment penalty for the first three years.
To get started, you can complete the lender’s online form to request a callback. This can be completed in under five minutes as you just need to provide basic information about your business and financing needs.
Kiavi: Best Short-term Financing for Conducting Repairs and Property Improvements
Why We Like Kiavi
If you’re looking for a bridge or fix-and-flip loan, Kiavi is a good option. It offers competitive rates and fast funding speeds along with flexible qualification requirements.
Kiavi can fund loans in as little as 10 business days. This is possible because it can issue approvals without an appraisal or income verification. While it can work with new investors, experienced investors with more than five exits in the past 24 months get additional benefits in the form of lower fees and a dedicated account manager to assist with even faster closings.
One potential downside is that Kiavi does not offer lending nationwide. Currently, it offers financing in 32 states and Washington D.C. You can see the states Kiavi lends in.
To learn more about your options, you can visit the provider’s website and get pre-qualified online. There is no fee or obligation to accept a loan offer. The process consists of a soft credit pull, which does not impact your credit score.
Lendio: Best for Multiple SBA Financing Options
Why We Like Lendio
Lendio is a broker with over 75 different lenders in its network. As a borrower, this gives you more opportunities to not only get approved but also secure a loan with the most competitive rates and terms.
If you decide to work with Lendio, you’ll be paired with a dedicated funding specialist who will pair you with the best lenders based on your business qualifications and needs. This can save you time and money from applying separately to different lenders on your own.
Applications can be completed in just 15 minutes. You’ll then be presented with loan options and can discuss their pros and cons with your funding specialist. Once you’ve selected a financing option, the specialist assigned to your file can also help walk you through the paperwork and steps needed to get approved and funded.
To learn more or to apply, you can visit the Lendio website.
Grasshopper Bank: Best for SBA 7(a) Expertise
Why We Like Grasshopper Bank
Grasshopper Bank is an SBA Preferred lender, allowing it to provide faster approval and funding speeds as it has the delegated authority to make decisions on behalf of the SBA. Although the company does not currently provide much information on its website, it does offer industry expertise specializing in self-storage and mini storage loans.
Loan proceeds can be used for many different business purposes. Some examples include business acquisitions, equipment, inventory, business expansion, partner buyouts, and working capital. Although it offers up to 100% financing, that flexibility is typically available only for business expansion loans. Other uses of loan proceeds, such as business acquisitions, may require a 10% down payment.
Other products offered by Grasshopper Bank include business banking products. For information, you can check out our Grasshopper Bank business checking review.
To apply for any of the bank’s products, you can visit its website to get the process started.
AVANA Capital: Best Commercial Bridge Loan for Well-qualified Investors
Why We Like AVANA Capital
AVANA Capital offers a commercial bridge loan that can be used to finance self-storage units. It does not publish all of its qualification requirements, but it’s recommended that businesses have good credit and excellent finances to secure approval.
While some may find it challenging to get approved, eligible companies can get competitive rates with flexible payment terms. This includes the option for interest-only payments, which can help your company’s cash flow while you seek permanent financing.
In addition to financing self-storage units, this provider’s bridge loan can be used to purchase multi-family homes, office buildings, retail stores, hotels, motels, and other commercial properties. AVANA Capital specializes in the hospitality, renewable energy, and owner-occupied real estate industries. It also offers SBA 504 loans, construction loans, and cannabis business loans.
To apply, visit the AVANA Capital website.
U.S. Bank: Best Conventional Bank for CRE and SBA Loans
Why We Like U.S. Bank
U.S. Bank offers conventional and SBA loans with varying rates, terms, and qualification requirements depending on your needs and circumstances. While it has strict eligibility criteria, businesses that qualify can get generous loan amounts, rates, and repayment terms.
The bank does not publicly advertise its available rates on all of its loan programs. However, highly qualified businesses may expect to get rates as low as around 6.99%.
To learn more about what impacts rates, you can head over to our guide on commercial real estate loan rates.
If you’re considering an SBA loan to finance your self-storage unit, you should know that U.S. Bank is an SBA Preferred Lender, allowing it to provide faster approval and funding speeds compared to lenders that do not carry this designation.
To apply, you’ll need to visit the U.S. Bank website to request a callback for the next steps. If you’re not ready to apply, you can schedule a physical or virtual appointment first. We also recommend checking to see if financing is available in the state you’re located in, as availability could vary depending on the loan program you’re applying for.
SBG Funding: Best for Easy SBA 7(a) Qualification Requirements
Why We Like SBG Funding
SBG Funding offers SBA 7(a) loans with easier qualification requirements. While SBA loans are generally targeted toward businesses with solid financials, SBG Funding tends to have more flexibility. You’ll have a good chance of getting approved if you can demonstrate some form of profitability, good cash flow, and manageable debt levels.
One thing to note with SBG Funding is that the maximum repayment term is 10 years. That’s shorter than many other loans on our list that offer up to 25 years. With a shorter repayment term, your monthly payments may be higher, so you’ll want to ensure you can afford it. Rates with SBG Funding also tend to be higher than other providers.
SBG Funding also offers other types of loans, which include small business term loans, lines of credit, bridge capital, invoice financing, and equipment financing. You can see what options are available by submitting an online application, a process that should take no more than 15 minutes. There will be no impact on your credit score, and you’ll have the opportunity to speak with a lending specialist who can answer any questions you may have.
CREFCOA: Best for Income-producing Self-storage Units
Why We Like CREFCOA
CREFCOA, short for Commercial Real Estate Finance Company of America, makes use of its proprietary lending platform to help you compare different types of CRE loans. Founded in 2005, it has since funded over $67 billion in loans and currently offers 10 main types of loan programs, including SBA, private equity, Fannie Mae, and Freddie Mac loans.
As part of its loan program offerings, CREFCOA provides a specific program for conduit self-storage loans. Eligible properties must be income-producing and located in medium to large markets. Smaller markets may also be considered on a case-by-case basis.
You can visit the CREFCOA website to learn more or to apply. There, you can also get a quick online quote in under five minutes at no cost, no obligation, and no impact on your credit score.
Caffrey Loans: Best Variety of Self-storage Loans
Why We Like Caffrey Loans
Caffrey Loans offers nationwide financing, and its self-storage loans can be used for a wide range of business purposes. It offers owner-occupied self-storage loans, investor loans, and loans for new construction.
Its owner-occupied loans can be a good fit for business owners willing to sign personal recourse for properties in smaller population centers. Available loan types can include bank portfolio loans and SBA loans. Investor loans, on the other hand, may be better suited for non-recourse loans in larger markets.
Caffrey Loans states that in most cases, it can provide loan proposals and quotes within one business day of receiving all required documentation.
To apply or learn more, visit the Caffrey Loans website.
How We Chose the Best Self-storage Loans
We focused on the following criteria when we selected the best self-storage loans:
- Interest rates and estimated APR
- Loan amounts offered
- Repayment terms
- Qualification requirements
- Types of loans offered
- Funding speed
- Customer reviews and ratings
Alternatives to Self-storage Loans
Our guide on how to get a small business loan can help you figure out the loan best suited for your needs and how to get approved at a low rate. However, if you’re unable to get funding from a self-storage loan, here are some alternatives to consider:
- Small business line of credit: This is a revolving line of credit that allows you to access funds on an as-needed basis. It can quickly provide funds to pay for repairs and unexpected expenses. You can view our list of the best small business lines of credit.
- Home equity loan (HELOAN): If you have enough equity in your personal residence, you can use it to fund the costs associated with purchasing or renovating a self-storage unit. It can also be easier to get as the qualification requirements differ from most business loans. For guidance, see our article on how to get a HELOAN to finance your business.
- Personal loan for business purposes: If your business finances aren’t strong enough to get a self-storage loan, you could still get funding with a personal loan. For a list of our recommendations, you can view our picks for the best personal loans for business funding.
Frequently Asked Questions (FAQs)
Getting self-storage financing can be challenging, as many lenders require good credit and finances to qualify. However, some may offer more flexibility in exchange for higher rates and less flexible repayment terms.
Many different types of business loans can be used to finance a self-storage unit. Some examples include SBA loans, hard money loans, portfolio loans, and CRE loans. The specific terms issued by a lender will typically dictate how you may use the loan proceeds.
You can get a self-storage loan from online lenders, banks, credit unions, and loan brokers. Each has different characteristics with regard to things like hours of operation, rates, fees, and loan programs offered.
Bottom Line
The lenders we’ve selected as the best self-storage loans have a combination of low rates, flexible repayment terms, and a track record of delivering excellent customer service. These loans can be used to purchase or fund repairs of self-storage units. To ensure this is the right type of loan for your business, you can read our guide on self-storage financing to learn more about how it works, what funds can be used for, and how to choose a lender.
