---
title: "What financing options are there for self-storage besides SBA loans?"
description: "**Short answer:** Most people getting started use bank or SBA loans (7(a) or 504). Experienced sponsors with a track record, high-net-worth guarantors and a larger project may use private debt capital groups. Seller financing and bridge loans can also help…"
url: "https://creatingwealththroughselfstorage.com/docs/self-storage-financing-options/"
updated: "2026-10-16"
category: "Financing & Raising Capital"
---

# What financing options are there for self-storage besides SBA loans?

**Short answer:** Most people getting started use bank or SBA loans (7(a) or 504). Experienced sponsors with a track record, high-net-worth guarantors and a larger project may use private debt capital groups. Seller financing and bridge loans can also help close a gap.

## The main options

- **SBA 7(a) and 504 loans.** Often around 20% down at minimum, and more when debt coverage requires it. A benefit Mark values on development deals is access to interest reserves and negative cash-flow funding during lease-up.
- **Traditional bank loans.** Often 25–35% down on new construction or conversions, sometimes more for deals that don’t cash-flow enough early on.
- **Private debt capital groups.** Mark has used one on a large development. They typically expect a track record, high-net-worth sponsors and a sizable project.
- **Seller financing or bridge capital** to bridge part of the gap.

## A note on SBA timing

On one deal Mark learned that an SBA loan doesn’t have to close before rates move to keep its terms: once the lender submits a complete package and the SBA assigns a loan number, the loan doesn’t have to be re-underwritten if rates rise. Confirm how this applies to your loan with your lender.

## Related answers

- [How much money do you need to get into self-storage today, and how does debt coverage affect it?](/docs/how-much-money-to-start-self-storage/)
- [Should you raise money for a self-storage deal from partners or investors?](/docs/partners-vs-investors-self-storage/)
- [How does a self-storage syndication work?](/docs/how-a-self-storage-syndication-works/)

**Source:** Mark’s posts [How Much Money Do You Really Need to Start in Self-Storage?](/how-much-money-do-you-really-need-to-start-in-self-storage/) and [What the Jobs Report, CPI, and Bond Market May Be Telling Us About Interest Rates](/what-the-jobs-report-cpi-and-bond-market-may-be-telling-us-about-interest-rates/)

**Want Mark’s full system?**Get his free 3-part video series on finding, analyzing and buying self-storage.

[Watch the free series](https://thequickstartacademy.com/p/free-3-part-video-series)