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  • SBA Financing question

    Good morning all,

    We're working with our bank on refinancing into an SBA loan to take advantage of the great current rates.

    We are an unstaffed facility, based on being unstaffed the bank does not think the SBA will approve financing.

    Has anyone else found success in getting an unstaffed facility approved with the SBA?

    The bank's reply is below. Would love to hear your feedback.

    Thanks!

    "That being said she stated they have been able to get some storage facilities approved in the past however the ones that they have been able to get approved by the SBA have a “service” and “job” component / aspect associated with them. What she stated is:
    Service, at the office, on site, they are selling boxes, tape, locks, etc. – there is a business component tied to the entity. Like the U-Haul Storage Facilities for example that have the large store / space with items for purchase
    Jobs, they have full time, employees on site during hours of operation. I.e. a receptionist to take calls, walk ins, and assist the customer. They have store personnel selling / assisting the customers purchasing items. One of the biggest criteria’s that needs to be met with SBA approving transactions is job creation – for every some many thousands of dollars, X amount of jobs needs to be created. While there are ways of getting around this occasionally, i.e. this loan will SAVE this many jobs, when there are no jobs to be had or saved with your transaction it seems unlikely to be approved. "


  • #2
    We have two locations financed through SBA. None are staffed, but we have offices there. There are jobs, but we float.

    Refinancing another 6 locations under SBA, same situation, not finalized.

    Re-word your responses. There are no true Unstaffed facilities. We are Self Service and handle the customers over the phone, but still have to do work on site. Note you have created jobs, but they float or you have outsourced labor and created work in the local area for landscaping, lawn, snow, management, etc.

    There should be no issues, just wording changes.

    Comment


    • #3
      Clarkstorage,

      Thanks for the reply. I appreciate your angle and you bring up excellent points.

      Has anyone else had experience, successful or otherwise, in financing an unstaffed location with the SBA?

      Thanks again!

      Comment


      • #4
        We have financed many unmanned facilities for folks like yourself. Working with a lender that is very familiar with the SBA and self storage is important not to be hindered by things such as this.
        Terry Campbell
        General Manager - Self-Storage lending division
        Live Oak Bank
        704-437-4322
        [email protected]
        www.liveoakbank.com

        Comment


        • #5
          Thank you Terry

          Comment

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