SBA 7(a) Loans
SBA 7(a) Program: 75% Guarantee
A 7(a) loan does not come directly from the SBA. Instead, DH Financing facilitates in finding a lender to make the loan and the SBA guarantees a portion of it, mitigating much of the risk.
For those applicants that meet the SBA’s credit and eligibility standards, the SBA can guaranty up to seventy-five (75%) percent of loans above $150,000 (generally up to a maximum guaranty amount of $5,000,000).
The SBA 7(a) loan program is an option for self-storage owners because it allows them to acquire, build and renovate facilities while allowing them to stay independent. Once they’re up and running, they can focus on their operation instead of wondering how they’ll make their next balloon payment.
A strong candidate for this program has ample experience running a business or a background in self-storage. To apply for a loan, you must meet these guidelines:
- Operate as a for-profit entity.
- Conduct business in the United States.
- Have personally invested equity in the company.
- Be able to demonstrate a need for the loan.
- Use the loan for sound business purposes.
- Not be delinquent on any debt obligations to the U.S. government.
- Meet the SBA’s definition of a small business.
Eligible Property Types
- Office: Professional, Condominimum, Medical, Dental and Veterinarian.
- Industrial: Heavy and Light Manufacturing, Warehouse and R&D Flex.
- Retail: General.
- Special Purpose: Assisted Living Facilities / Adult Care, Day Care Facilties, Restaurants, Funeral Homes and Hotels/Motels.