You can finance a self storage facility with an SBA loan, a conventional bank loan, a DSCR loan based on the facility's income, a short-term bridge loan, land and construction financing, or equipment financing for gates and kiosks. The best option depends on whether you're buying, building, expanding or refinancing, and how fast you need to close.
What are the main ways to finance a self storage facility?
Most self storage deals use one of six types of financing. Each one fits a different stage of the facility's life.
| Financing type | Often used for | What it leans on |
|---|---|---|
| SBA loans (7(a) and 504) | Buying, building or expanding an owner-operated facility | The business, the owner and the project |
| Conventional bank loans | Established owners with strong financials | Your history, your financials and the property |
| DSCR loans | Investors buying or refinancing stabilized facilities | The facility's income versus its debt payments |
| Bridge loans | Fast purchases, lease-up periods, value-add projects | The property and the exit plan |
| Land and construction loans | Ground-up builds and new phases | The site, the plans and your team |
| Equipment financing | Gates, kiosks, cameras, access control | The equipment itself |
In our experience, the biggest surprise for owners is how many of these options exist. A lot of people walk in thinking a bank loan is the only path. It's one path. It's rarely the only one.
Can you use an SBA loan to buy a self storage facility?
Yes. Self storage can qualify for SBA financing when the borrower and the project meet SBA and lender requirements.
The two programs you'll hear about most are:
- SBA 7(a): a flexible program that can cover buying a facility, working capital, and some improvements. The standard 7(a) program goes up to $5 million.
- SBA 504: built for long-term fixed assets like real estate and major improvements. It pairs a bank loan with a loan from a Certified Development Company.
SBA loans tend to take longer than other options because there's more paperwork and review. They're a good fit when you plan to own and operate the facility for the long haul. For a deeper look, see our guide to SBA loans.
What is a DSCR loan, and when does it fit self storage?
A DSCR loan qualifies the deal mainly on the facility's income compared to its debt payments. DSCR stands for debt service coverage ratio.
Here's the simple version. The lender looks at the facility's net operating income (rent coming in, minus operating costs) and compares it to the loan payment. If the income comfortably covers the payment, the deal can work, even if your personal income isn't the main story.
DSCR loans are popular with investors who:
- Are buying an existing facility that's already leased up
- Want to refinance a stabilized facility
- Own several properties and don't want every deal tied to personal income
Clean rent rolls and solid operating history matter a lot here. Learn more on our DSCR loans page.
When does a bridge loan make sense for a storage deal?
A bridge loan is short-term financing that helps you close quickly or carry a property until it qualifies for long-term financing.
Common bridge situations in self storage:
- A seller wants to close faster than an SBA or bank loan can move
- The facility has low occupancy and needs time to lease up
- You plan upgrades (new units, better access control, climate control) before refinancing
The key with a bridge loan is the exit. Know how you'll pay it off, usually by refinancing into a longer-term loan once the facility is performing.
How do you finance building or expanding a self storage facility?
Ground-up builds and expansions usually rely on land, construction or SBA financing, sometimes combined with equipment financing for the tech.
A typical path looks like this:
- Land. Buy the site with cash, a land loan, or as part of a larger construction package.
- Construction. Fund the buildings, paving, fencing and utilities, often drawn in stages as work gets done.
- Equipment. Finance gates, keypads, kiosks and cameras separately if it keeps more cash in your pocket.
- Permanent loan. Once the facility is open and leasing, refinance into long-term financing.
Adding new units, boat and RV parking, or climate-controlled space to an existing facility can follow the same idea on a smaller scale. Facilities in our area often see busy and slow seasons, so it helps to plan your cash flow around them before you add debt.
What documents should you have ready before applying?
Have your financials, your facility's numbers and your plan ready before you apply. It speeds everything up.
In our experience, owners often don't know what documents to have ready, and that's where deals stall. A good starting checklist:
- Business and personal tax returns (usually the last two to three years)
- Year-to-date profit and loss statement and balance sheet
- Current rent roll and occupancy history for the facility
- Recent business bank statements
- Purchase agreement, or plans and budget for a build or expansion
- A short summary of your experience and how you'll run the facility
Every funding partner has its own list, but showing up with these covers most of the early questions.
How does BRIDGEVANTI help self storage owners find funding?
We connect you with funding partners who work with this kind of project. Use this guide to see which types of financing fit your deal, then apply with a funding partner.
BRIDGEVANTI never runs a credit check. Funding partners may do a soft credit pull, which doesn't affect your credit score. We don't charge you any fees for funding.
And once the doors are open, we can help on the operations side too. Our self storage solutions include management software with no monthly software fees and no per-unit costs, plus the option to pass card and ACH fees to tenants. Start with our funding overview to see every option we help with.
All funding is subject to approval. BRIDGEVANTI is not a lender. We connect businesses with funding partners, don't charge you any fees for funding, and may be compensated by our partners for referrals.
Frequently asked questions
Can you get an SBA loan for a self storage facility?
Yes, self storage can qualify for SBA financing, including the 7(a) and 504 programs, when the borrower and the project meet SBA and lender requirements. These programs can be used to buy, build or expand a facility.
Do I need a bank loan to buy a self storage facility?
No. Banks are one option, but owners and investors also use SBA loans, DSCR loans, bridge loans, land and construction financing, and equipment financing. The right fit depends on the deal, your timeline and your experience.
What is a DSCR loan for self storage?
A DSCR loan qualifies the deal mainly on the facility's income compared to its debt payments, instead of leaning only on your personal income. It is commonly used by investors buying or refinancing an existing, stabilized facility.
Will applying for funding hurt my credit score?
BRIDGEVANTI never runs a credit check. Funding partners may do a soft credit pull, which doesn't affect your credit score.
Does BRIDGEVANTI charge a fee to help with funding?
No. BRIDGEVANTI is not a lender and doesn't charge you any fees for funding. We connect businesses with funding partners and may be compensated by our partners for referrals.