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 SBA Small Business Administration loans, and various CRE Commercial Real Estate loans.
If you’re wondering where to get self-storage loans, here are our eight picks:
- Live Oak Bank: Best SBA 7(a) loans for self-storage CRE
- Lendio: Best for multiple SBA financing options
- U.S. Bank: Best conventional bank for CRE and SBA loans
- Caffrey Loans: Best variety of self-storage loans
- SBG Funding: Best for easy SBA 7(a) qualification requirements
- Grasshopper Bank: Best for SBA 7(a) expertise
- CREFCOA: Best for income-producing self-storage units
- AVANA Capital: Best commercial bridge loan for well-qualified investors
Best Self-storage Loans at a Glance
Estimated Starting APR | Maximum Loan Amount | Maximum Loan Term | Minimum Credit Score | Loan Type | |
|---|---|---|---|---|---|
 | 11.5% | $5 million+ | 25 years | 650 recommended | SBA 7(a) |
 | Varies | $5 million | 30 years | 650 | SBA 504 and SBA 7(a) |
 | Varies | 25 years | 700 recommended | CRE & SBA | |
 | 5.54% | $1 million+ | 25 years | 650+ recommended | CRE |
 | Varies | $10 million | 10 years | 650 | SBA 7(a) |
 | Varies | $5 million | 25 years | 660 | SBA 7(a) |
 | Varies | $3 million | 10 years | 650+ recommended | CRE |
 | 7% | $30 million | 3 years | 680+ recommended | Commercial bridge |
Live Oak Bank: Best SBA 7(a) Loans for Self-storage CRE
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Rates & Terms | |
Starting Interest Rate | 11.5% to 16.5% |
Estimated APR | 11.5% |
Loan Amount | Up to $5 million+ |
Loan Term | Up to 25 years |
Maximum Loan to Value (LTV) | 90% |
Closing Costs and Fees | SBA Guarantee Fee of up to 3.75% |
Funding Speed | Typically 30 to 60 days |
Loan Type | SBA 7(a) |
Qualifications | |
Credit Score | 650 recommended |
Time in Business | 2 years recommended |
Debt Service Coverage Ratio (DSCR) | Not stated, but 1.25x is recommended |
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 in 2023.
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. It also has a team dedicated to self-storage financing, which can help you with the loan process and answer any questions you may have.
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.
Lendio: Best for Multiple SBA Financing Options
| |
Rates & Terms | |
Starting Interest Rate |
|
Estimated APR | Varies |
Loan Amount | Up to $5 million |
Loan Term | 10 to 30 years |
Maximum LTV | 90% |
Closing Costs and Fees | Varies |
Funding Speed | 30 to 60 days |
Loan Type | SBA 504 and SBA 7(a) |
Qualifications | |
Credit Score | 650 |
Time in Business | 2 years |
Revenue | $96,000 annually |
Why We Like Lendio
Lendio is a broker with over 75 different lenders in its network. We chose it as our top pick for multiple SBA financing options since 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 a few minutes. You’ll then be presented with loan options and can discuss loan details 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.
U.S. Bank: Best Conventional Bank for CRE and SBA Loans
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Rates & Terms | |
Starting Interest Rate | Varies |
Estimated APR | Varies |
Loan Amount |
|
Loan Term | Up to 25 years |
Maximum LTV | 90% |
Closing Costs and Fees | 2% to 4% of the loan amount |
Funding Speed |
|
Loan Type | CRE and SBA |
Qualifications | |
Credit Score | 700 recommended |
Time in Business | 2 years recommended, but can vary |
Debt Service Coverage Ratio (DSCR) | 1.25x |
Why We Like U.S. Bank
U.S. Bank offers conventional CRE 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. However, it makes our list as the best conventional bank due to its reputability and wide variety of financing options.
The bank does not publicly advertise its available rates on all of its loan programs. However, highly qualified businesses may expect to get rates estimated to be as low as around 6.50%.
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 with lenders that do not carry this designation. It also offers a variety of CRE loans that can be applicable to financing self-storage units. You may also consider its Quick Loan (is considered to be a term loan) and Cash Flow Manager (acts as a business line of credit), which may be applicable depending on your financing needs.
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.
Caffrey Loans: Best Variety of Self-storage Loans
| |
Rates & Terms | |
Starting Interest Rate | 5.54% |
Estimated APR | Varies |
Loan Amount | $1 million+ |
Loan Term | Up to 25 years |
Maximum LTV | 75% |
Closing Costs and Fees | Varies |
Funding Speed | 30 to 60 days |
Loan Type | CRE |
Qualifications | |
Credit Score | Not stated, 650+ recommended |
Time in Business | Not stated, 2 years recommended |
Debt Service Coverage Ratio (DSCR) | Not stated |
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 provides owner-occupied self-storage loans, investor loans, and loans for new construction. For these reasons, it makes it our top pick for the best variety of self-storage loans.
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. While it offers lower loan amounts than other providers in this guide, it has flexible qualifications and favorable rates.
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.
SBG Funding: Best for Easy SBA 7(a) Qualification Requirements
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Rates & Terms | |
Starting Interest Rate | Prime + 2.5% |
Estimated APR | Varies |
Loan Amount | Up to $10 million |
Loan Term | 2 to 10 years |
Maximum LTV | 90% |
Closing Costs and Fees | 1.5% to 2.5% of the loan amount |
Funding Speed | 30 to 60 days |
Loan Type | SBA 7(a) |
Qualifications | |
Credit Score | 650 |
Time in Business | 2 years |
Debt Service Coverage Ratio (DSCR) | 1.25x |
Why We Like SBG Funding
SBG Funding is our best pick for easy SBA 7(a) loans 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.
While financing offered isn’t specific to self-storage loans, funds can be used for acquiring or repairing units. 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 or 30 years, excluding short-term loans provided by AVANA Capital. That said, with a shorter repayment term, your monthly payments may be higher, so you’ll want to ensure you can afford it.
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.
Grasshopper Bank: Best for SBA 7(a) Expertise
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Rates & Terms | |
Starting Interest Rate | Prime + 2% to 3% |
Estimated APR | Varies |
Loan Amount | $250,000 to $5 million |
Loan Term | 10 to 25 years |
Maximum Loan to Value (LTV) | Up to 100% |
Closing Costs and Fees | Not stated |
Funding Speed | 30 to 60 days |
Loan Type | SBA 7(a) |
Qualifications | |
Credit Score | 660 |
Time in Business | 2 years |
Debt Service Coverage Ratio (DSCR) | 1.25x |
Why We Like Grasshopper Bank
Grasshopper Bank makes our list as the best pick for SBA 7(a) expertise as it is an SBA Preferred Lender. This allows 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. While other lenders such as U.S. Bank and Live Oak Bank are also SBA Preferred Lenders, Grasshopper Bank offers a streamlined process that aims to simplify the application and get you quicker access to funding.
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.
CREFCOA: Best for Income-producing Self-storage Units
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Rates & Terms | |
Starting Interest Rate | Not stated |
Estimated APR | Varies |
Loan Amount | Up to $3 million |
Loan Term | Up to 10 years, with payments amortized for up to 30 years |
Maximum Loan to Value (LTV) | 75% |
Closing Costs and Fees | Varies |
Funding Speed | 30 to 45 days |
Loan Type | CRE |
Qualifications | |
Credit Score | 650+ recommended |
Time in Business | 2 years recommended |
Debt Service Coverage Ratio (DSCR) | 1.30x to 1.40x |
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.
It makes our list due to its loan offerings, particularly its 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. That said, qualification requirements vary, and strong financial history is recommended.
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.
AVANA Capital: Best Commercial Bridge Loan for Well-qualified Investors
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Rates & Terms | |
Starting Interest Rate | Varies |
Estimated APR | 7% to 12% |
Loan Amount | Up to $30 million |
Loan Term | 12 to 36 months |
Maximum Loan to Value (LTV) | 75% |
Closing Costs and Fees | Varies |
Funding Speed | 10 to 30 days |
Loan Type | Commercial bridge |
Qualifications | |
Credit Score | Varies, but 680+ is recommended |
Time in Business | Varies, but 3 years is recommended |
Debt Service Coverage Ratio (DSCR) | Varies, but 1.4x is recommended |
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. For these reasons, it’s our choice for the best commercial bridge loan for well-qualified investors.
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. While other lenders such as Lendio also offer short-term financing options, we like AVANA Capital for its expertise and favorable loan terms.
In addition to financing self-storage units, this provider’s bridge loan can be used to purchase multifamily 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.
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
- Ease of application
- Funding speed
- Customer reviews and ratings
How to Choose a Loan Provider
Now that you know where to get self-storage loans, there are a few factors you should consider before signing a loan agreement. Consider the following:
- Determine your need for financing. Before applying, you should determine how much funding you need, how you plan to repay a loan, and what you can afford in terms of rates and fees.
- Review lender qualification requirements. Lenders will have varying qualification criteria, and it’s best to review necessary qualifications before submitting an application. Factors commonly considered are credit score, time in business, and annual revenue. By meeting these criteria, you can increase your odds of approval.
- Compare loan rates, fees, and terms. Before committing to an agreement, you should compare loan details across lenders you’re considering. This ensures you get the best rate and get financing that meets your business needs and budget.
Alternatives to Self-storage Loans
If you are unable to get funding from a self-storage loan or simply want to learn more about your potential financing options, 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
When debating where to get a self-storage loan, you should consider our top picks since the lenders we’ve selected have a combination of low rates, flexible repayment terms, and a track record of delivering excellent customer service. These loans can be used for a variety of self-storage purposes, whether it be to purchase or fund repairs of 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.
