New Reasons To Use SBA Loans For Your Self Storage Purchase!

Hello everyone this is jim ross, the self storage show. Today. I got a returning, returning, returning guests been a few times.

Got terry campbell from live. Oh, big. How's it going? Going. Great. How about you? Good going trying to keep a sanity and all the craziness going on.

I'm telling you, it's hard to dio hard to do because it's crazy. It is crazy. It's so busy s so much going on. Um, it's not like we were already busy and and and this industry wasn't already, you know, I had a big buzz around it, but, you know, with I think with bill gates, uh, investing in self storage and, uh, and also with blackstone, you know, doing that when points at $1. 2 billion acquisition, uh, is really put it on the radar of a lot of people. So now it's like, okay. Oh, my gosh. Gates is in this, so we better look at it. So it's like the phone. I'm not complaining because I love to be busy and love to have business.

But, man, the phone is nonstop. The emails were nonstop texture nonstop, so but that's good. That's good.

Great industry. Good. Everything is always changing, is always updates and things going on that they wanna have. You come back on and kind of give us latest and greatest on what's up with the programs, and i'll just let you take it around them.

All right, well, you know, aziz usual. The s b a. You know, that's what we do. We're the number one s b a lender by dollar volume in the country and my team at the bank. You know, all we do is self storage lending, you know, as a bank, you know, we do 30 I think maybe 36 different industries right now. Plus, we have a team of generalists that loan on anything pretty much this s p a eligible.

But again, our team only does self storage. We've been busy as always. I'll get out. And, you know, the s b a. Programs in general are super.

They're they're great for a lot of folks. Um, you know, some people may not qualify, so maybe too big for it.

Uh, but for those who qualify and don't wanna, you know, burn all your cash going in as equity on the deal. You wanna have some leftover, have some powder dry s b a programs. Great. Because you can do, you know, is little as 10% equity.

So you can finance up to 90% in cases in many cases of the acquisition. Ah, and or the new construction eso we've done, um, over 5. 5 years.

Gosh, was it seven around? Okay, i'm just saying around, cause I don't know specifically compliance might yell at me, but it's, uh, somewhere around $740 million in self storage loans that our team has done in the last 5. 5 years because, I mean, the program's great.

Got a great team that really knows the product knows the industry. Uh, eso itt's really good opportunity for folks who want to get in the business and don't have a lot of cash. Or maybe don't wanna bring partners in or for whatever reason, uh, excuse me, s p a or something that definitely should be investigated on. I'll throw that out there and and one of the reasons I wanted to, you know, talk with you today, jim, and be back on the show is it gives some updates.

Uh, everybody's heard about the stimulus program that that sat and, you know, took forever to get. And then finally it got signed and, um, part of that stimulus program, there were some sp a subsidies that are gonna be out there. It's sort of a continuation of the cares act from last year, but you got the p p. P, which is a whole different animal. I'm not gonna talk about it, but, uh, in fact, most still storage people don't need to. People be along because we've done so well through the pandemic.

But some of the new subsidies right now that are part of the the stimulus program to help try to stimulate new business and expansions and things like that one is, um, you know, the s b a program is not subsidized by the taxpayers.

Uh, it's subsidized by those who use it. So usually there's an s b a fee that's included that's involved. Think of it as a, um, an origination fee of sorts, except it's a little bigger than origination. Fee normally is on a conventional deal, but right now what? The government what the s b a is doing is that fee is waived.

So if you close along between february for we're actually between right now and, um, september 30th of this year, that fee is waived. So, you know, on a $5 million deal, you know, we've done $5 million deals with lots of them. It's gonna be a little of around 100 $35,000 in fees that are waved right now.

So the fbi is taking that away to help try thio, promote business folks getting in the business and growing business. Uh, the other thing, which is very important, which I think will catch a lot of people the year they'll really like is, uh, that if you close alone between february 1st in september 30th of this year, the s p a. Will provide up six months of p and I payments up to $9000 that it's basically a subsidy. It's a gift. It's it's not something that's tacked on the end of your loan. It's not something you gotta pay back later. It is a subsidy. You close alone. They make six months of payments for you. Now, um, again, it's up to. It's up to $9000.

Now there's some conversations again. This is just I mean, conversations that this is not saying this is rule. This is not the rule. This is not, you know the way it is exactly.

But they're talking about, uh, with the new administration, there could be some mawr funding or some or, you know, money put into this program so it could be better. It could be longer. Could be more more of a payment, who knows?

But we still don't officially have all the rules for these two. These two subsidies I just gave you. So the way it's written, that's the way it's supposed to be.

But as always, with, you know, the government, um, it can change the subject to change. You know, if this money runs out before september 30th and it may be that maybe it you know, you could miss it, um, the same, you know, with the fees and the payments.

But as of now, here, here's a great opportunity to use a great program and get some great benefits we may never see again a za borrower.

So, uh, and I wanna keep using the caveat just in case my compliance folks watch this, that this is definitely, um, not in total, totally in stone. Yet it is subject to possibly changing, um, one way or another, there could be some rule changes again. You know, with just like last year with the a p p. P program is the cares act.

We were getting changes, even right in the middle of it, while we were doing it all the way through. I mean, there's constant rule changes, but as I said, as it sits now to great subsidies, opportunities if you wanna, you know, build a project by project, um, give us a call. Let's let's talk about this and and see if this is gonna be a fit for you if you're in s b a candidate or let's let's talk about how it will work.

Yeah, that's that's all. Quite me. Like I said, things can change, but the average person we don't know what's out there.

So exactly all the experts go right to the source of all tell you exactly like it's gonna be a good fit or what's what's a good average to go down and your up to date on this type of stuff.

We're not so right to you for this kind of thing. Yeah, we're up to date. As far as the last set of instructions we were given way, get him fairly regularly. So but like I said, that's the gist of what I wanted thio to get the word out.

Because these and and a lot of times you know, there's a lot of misinformation out there. There's already, you know, it's folks out there, you know, other lenders and folks in the business brokers or whatever, um, that i've seen that are already saying, hey, this is this.

You know, this is the program called me. Let's get it done. Well, it's not. It's not even open until february 1st.

The final set of rules haven't come down. Things could change, so I don't want to mislead anybody. I want to tell them this is the way it is written.

And if nothing changes this way, it's gonna be and again. If it changes, it could be better. But let's talk about let's see what you got on. And when we get those final rules will know. Let's just see if it's something that that works for you.

That's why I always have you on. Because you know, you're not going to say things just to get the phone call and all that kind of stuff.

You you guys know what you're doing. You had, like I said, how many million dollars and closed loans in the past? You have to have the client. Everyone i've talked to you just say it's amazing to work with you. So that's why I said, we don't want to come on like all right, cool house tomorrow.

Let's get you on, right. Looks like great. So let's end it with great. What's the best way for people that do want to reach out to you to get more information?

Just shoot me an email. Um, terry, if you can see it right there in the video terry dot campbell at live oak dot bank, terry dot campbell at live dot bank.

Or you could give me a call. 910 202 6933 got it. All right. Well, perfect. Until next time, terry. We'll do it again. But thank you very much for taking time and coming on super. Thanks. For having me again. Jim, I really appreciate it. Always like being here.

You could always have some great stuff going on. Perfect. Alright, take care. Thanks. Yeah.


Jim chats with Terry Campbell from Live Oak Bank about new reasons to use SBA Loans for your self storage purchase!

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