Storage Units Eligible Under SBA 504

storage

Purchase or construction of mini warehouses and self-storage units are an eligible use of SBA 504 loan funds. Even better, they are not considered a special purpose property by SBA. This means the small business applicant would be able to get their project underway with the minimum of 10% equity injection, if they are an existing business or have sufficient experience.

The SBA 504 program is available for owner-occupied businesses. Business models that generate income by renting space to accommodate independent businesses are not eligible. Mini warehouses for residential or commercial storage are considered eligible for 504 financing because storage is the owner’s actual business. In comparison, rental contractor shops or strip malls are not eligible for 504 financing because the owner does not occupy the space for his/her own business.

For more information and to discuss project eligibility contact FDDC.