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  • SBA Loan

    Thinking of using an SBA loan to refinance my existing storage facility. Does anyone have direct experience with SBA Loans? Pros and Cons?

  • #2
    Yes, we've used the SBA program and we like it because you can put 10% down under certain programs. It is not good if you want to sell or refinance within the first 3 years because you will be hit with a penalty. I recommend Nick Collins at First Bank Financial Centre. They specialize in self storage so if there are bids or issues that he sees during the course of your loan that are off he will let you know; and they are an SBA preferred lender so when they approve your loan the SBA approves your loan (this speeds up the process). Good luck!
    Sensei, Self-Storage Ninjas
    Black Belt Feasibility Consulting
    www.selfstorageninjas.com
    www.facebook.com/selfstorageninjas

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    • #3
      SBA 7(a)
      Cons: Guarantee Fee of 3.5% (so $35,000 FEE on $1,000,000).

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      • #4
        Originally posted by KatherineAD View Post
        Yes, we've used the SBA program and we like it because you can put 10% down under certain programs. It is not good if you want to sell or refinance within the first 3 years because you will be hit with a penalty. I recommend Nick Collins at First Bank Financial Centre. They specialize in self storage so if there are bids or issues that he sees during the course of your loan that are off he will let you know; and they are an SBA preferred lender so when they approve your loan the SBA approves your loan (this speeds up the process). Good luck!
        Sending PM

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        • #5
          The good: as low as 10% down, no financial covenants, 7a can provide working capital for your ramp up period.

          cons: more paperwork than a conventional loan, SBA fees are higher than normal bank fees.

          SBA is a great option to get you started with a new project and when you get enough equity and track record, you can refinance into something that probably has better rates. It is a great option as well for acquisitions using the 504 because currently there are some really low rates on the SBA portion of that loan.
          Terry Campbell
          General Manager - Self-Storage lending division
          Live Oak Bank
          704-437-4322
          [email protected]
          www.liveoakbank.com

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          • #6
            Hi. I would definitely recommend reaching out to Terry Campbell from Live Oak Bank. I've been in the industry for many years now and Live Oak Bank prides themselves on their service and being the experts in SBA loans.

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            • #7
              Originally posted by Jim Ross View Post
              Hi. I would definitely recommend reaching out to Terry Campbell from Live Oak Bank. I've been in the industry for many years now and Live Oak Bank prides themselves on their service and being the experts in SBA loans.
              3 Mile Domination - I've seen a few of your YouTube videos. Welcome to the forum!

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