SBA 504 loans for Self Storage Facilities
Over the last decade, self-storage owners have used SBA 504 financing to fund more than $2.9 billion in real estate, construction, and equipment. We help you secure the same financing — with 10% down, 25-year fixed rates, and a team that knows the 504 program inside out.
The Self Storage Facility SBA 504 market, by the numbers
What ten years of Self Storage Facility SBA 504 loans — pulled directly from the SBA's own data — tell us about how operators finance this business.
Source: SBA 504 loan approvals for NAICS 531130, FY2016–FY2025. Data via FOIA request, updated quarterly.
What an SBA 504 loan covers for a Self Storage Facility
SBA 504 financing is built for long-term assets — the real estate, infrastructure, and major equipment that anchor a Self Storage Facility business.
Property purchase & land
Buy an existing facility or the land to build one instead of renting your way into the business. 504 lets you take down the real estate with just 10% down and a long fixed rate — and storage throws off steady cash flow to carry it.
- Existing self-storage facilities
- Land for a ground-up build
- Adjacent parcels to expand your footprint
- Buying out a partner or ground lease
- Underused buildings to convert to storage
Ground-up construction
Build a facility from the ground up on a growing corner of town. 504 covers the site work and the buildings — the drive aisles, the unit mix, and the structures that turn a vacant lot into rentable square footage.
- Ground-up single or multi-building facilities
- Site work, paving, and drive aisles
- Drive-up and interior unit buildings
- Climate-controlled structures
- Fencing, lighting, and signage
Expansion & second locations
Storage rewards square footage. Use 504 to add buildings, convert to higher-rent climate-controlled units, or pick up a second facility across town — without draining the cash flow the current site produces.
- Adding buildings and unit rows
- Converting to climate-controlled units
- Second and third facilities
- Adding boat and RV storage
- Acquiring a competitor's facility
Equipment with long lives
The systems that let a facility run lean — often nearly unmanned — and last long enough to finance. 504 is built for big-ticket, long-life assets, so you spread the cost over the years they'll actually serve your tenants.
- Gated access and keypad entry systems
- Security cameras and monitoring
- Climate-control and HVAC systems
- Solar and backup power
- Office, kiosk, and management software
How SBA 504 financing is structured
Three pieces of capital come together so you only put 10% down on a project that might cost millions.
First lien (50%)
APC funds this directly — we're a private direct lender, not a broker. Term and rate quoted upfront.
SBA 504 / CDC (40%)
Second lien, fixed for 25 years through a Certified Development Company. Rates locked at funding.
Borrower equity (10%)
Cash down, retained equity in existing real estate, or seller carry-back in some cases.
What a 504 project for a Self Storage Facility looks like
Three illustrative examples showing typical deal structures, financing splits, and project scopes.
An operator who already ran a storage facility bought a second — an established, well-occupied site with steady month-to-month cash flow, real estate included. As a cash-flowing business on general-purpose real estate, the deal came together at 10% down. The 25-year fixed 504 rate locked the payment while the operator kept capital free to add units later.
A storage company that already operated two locations built a third from the ground up on a growing edge of town — drive-up buildings and a climate-controlled structure. As an established operator on general-purpose real estate, the build was structured at 10% down. One 504 loan wrapped the land, the site work, and the buildings at a long fixed rate.
An owner reinvested in the highest-rent parts of the business — adding climate-controlled units and covered boat-and-RV storage to an existing facility. Rather than tapping reserves, they used a 504 loan at 10% down. The long fixed term kept payments steady while the new higher-margin space filled up.
Owning your Self Storage Facility property beats leasing — here's the math
Slide the inputs to match your situation. The equity number on the right is what you'd have in 10 years if you owned instead of leased.
Where Self Storage Facility SBA 504 money is going
Geography, deal sizes, top CDCs, and the banks making it happen — all pulled from a decade of SBA data.
Top 10 states by loan volume
| State | Loans | Total funded | |
|---|---|---|---|
| 1 | Wisconsin | 73 | $53M |
| 2 | California | 70 | $144M |
| 3 | Florida | 68 | $123M |
| 4 | Utah | 63 | $95M |
| 5 | Texas | 60 | $90M |
| 6 | Georgia | 52 | $75M |
| 7 | Michigan | 50 | $51M |
| 8 | Minnesota | 36 | $27M |
| 9 | New Hampshire | 28 | $28M |
| 10 | Illinois | 28 | $40M |
Deal size distribution
Top CDCs financing Self Storage Facilities
These Certified Development Companies have funded the most Self Storage Facility SBA 504 deals over the past decade. Click any CDC for their full profile.
Top 10 third-party lenders for Self Storage Facility deals
| # | Lender | Loans | Volume |
|---|---|---|---|
| 1 | Bank Five Nine | 143 | $377M |
| 2 | Live Oak Banking Company | 33 | $129M |
| 3 | Glacier Bank | 20 | $40M |
| 4 | Cache Valley Bank | 10 | $7M |
| 5 | Community National Bank | 10 | $7M |
| 6 | Mountain America FCU | 9 | $19M |
| 7 | Community Banks of Colorado | 7 | $24M |
| 8 | The Bank of Commerce | 7 | $4M |
| 9 | River Bank | 7 | $5M |
| 10 | First Interstate bank | 6 | $6M |
What it takes to qualify
SBA 504 has clear, objective criteria. Most Self Storage Facility operators we work with qualify.
Business requirements
- For-profit businessSBA 504 is for operating companies, not investors or holding companies.
- Owner-occupied useYou operate the Self Storage Facility — you're not just buying real estate to lease out.
- US-based and below SBA size limitsMost Self Storage Facility businesses qualify under SBA's small business size thresholds.
- Demonstrated ability to repayCash flow, credit, and business experience all matter — but no perfect score required.
Project requirements
- 51% owner-occupancyYour business must occupy at least 51% of the financed property.
- Eligible use of fundsReal estate, ground-up construction, major equipment, and certain refinances qualify.
- Long useful lifeEquipment financed under 504 must have a useful life over 10 years.
- 10% equity contributionCash, retained property equity, or seller carry — structured to fit your situation.
Most Self Storage Facility operators qualify. The fastest way to know is a 10-minute call. 1-855-504-LOAN
Built for Self Storage Facility financing
We're a direct lender that specializes in SBA 504 — not a broker, not a generalist.
Explore SBA 504 loans by industry
A decade of loan data, case studies, and deal structures for each of the property types we finance most.
Ready to finance your Self Storage Facility project?
Schedule a 15-minute call. No application fee, no obligation.