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Self Storage Eligibility

Loan Criteria for Self Storage Properties
  • Satisfactory loan payment history
  • Fixed rates and variable rates
  • Fixed rates tied to SWAPS, variable interest rates tied to the Prime Rate
  • Loan-to-value up to 75% stand alone and 90% with SBA 504 companion
  • Loan maturity and/or amortization not to exceed 20 to 25 years
  • Loan amounts could go up to $6,000,000 (case by case)
  • First mortgage on owner occupied and investor commercial properties


Self Storage Credit Approval Criteria

  • First lien position on self storage real estate
  • All loans fully amortizing (no balloons) up to 25 years for multi-use properties, up to 20-25 years for special use properties, 15 years for car washes
  • Lender retains 0.50% of the SBA 504 first mortgage loan fee for the SBA "fee" on direct funding situations


Cash Flow/Debt Coverage

  • Minimum DSC of 1.20x on all existing and proposed debt as of last Fiscal Year End


Loan to Value

  • (*) Multi-use =        90% SBA 504 (warehouse, manufacturing, office, retail, medical office)
  •                                  75% Conventional Financing
  • (*) Multi-use =        80% (warehouse, manufacturing, office, retail, medical office)
  •                                  75% Conventional Financing
  • (*) Special Use =    80% (new auto dealers, automotive repair shops, grocery stores, funeral homes)
  •                                  75% Conventional Financing 
  • (*) Special Use =    80% (restaurants, daycare, car washes, assisted living centers, etc.)
  • (*) Hotels/Motels Up to 85% with SBA Companion. Stand Alone LTVs up to 75% for newer, flagged, interior corridor properties with fewer than 100 rooms and a minimum 1.4x DSC for the past two years <= 55% on most older properties (according to Lenders valuation method)
  •                                  75% Conventional Financing
  • (*) Gas Stations <= 75% (according to Lenders valuation method)


Investor Properties

The eligibility criteria for investor loans are the same as for owner occupied loans for collateral, maximum loan amounts, pricing, and LTVs. Differences are as follows: 
  • Minimum 20% equity of the lower of purchase price or appraised value
  • Gas station/c-stores or car washes
  • Borrowers must be current or previous owners of investor properties
  • Minimum 1.2x DSC for past two years
  • 30 year maximum maturity and amortization


Call for detailed eligibility, underwriting, and valuation criteria.

 


Start-Up Businesses


Prior industry management and ownership experience

  • 20% equity of hard project costs plus working capital and inventory
  • Outside sources of cash flow to service > 30-50% of proposed debt


Availability:  Nationwide


Apply for a Small Commercial Loan

(*) LTVs could be higher if your loan qualifies and is done with a SBA 504 companion.