SBA 504 Self Storage Feasibility Study in Minnesota

Scale of Minnesota self storage facility lending

SBA lists 34 SBA 504 loans to self storage facilities in Minnesota between FY2017 and FY2026, with $25.8 million in gross dollars approved in Minnesota. $481,500 is the Minnesota median, and the middle half of self storage facilities loans stretches from $352,750 to $1.1 million. Against the national self storage facilities median under SBA 504, the Minnesota median stands at 0.54x, which puts Minnesota below the national figure for self storage facilities. The franchise share is 0.00%; owners of Minnesota self storage facilities operate independently.

Minnesota self storage facilities take rank 8 against other states under SBA 504, and 12 of 39 when set against Minnesota's other classes. FY2022 was the Minnesota high point, 9 loans and $5.3 million together, and no loans appear for FY2026. Minnesota self storage uses 504, which finances buildings, and the trend table shows approvals dropping out after FY2023, detail the blended class page omits.

SBA lists Midwest Business Finance Corporation as the leading holder for Minnesota self storage facilities, with 17 loans worth $9.3 million. Behind it stand Twin Cities-Metro Certified Development Company, which holds 5 loans valued at $5.9 million and WBD, Inc., which holds 5 loans valued at $3.3 million. SBA's Minnesota file puts Midwest Business Finance Corporation first among 34 loans, where each name holds or held self storage facilities loans; none is rated. The Minnesota loans cluster in Anoka, which has 6; Blue Earth has 2 and Clay has 2. Lower on the list are Clearwater 2, Dakota 2 and Lake 2.

What the Minnesota outcome figures leave out

For Minnesota self storage facilities approved by FY2024, a cancellation floor of 23.5%; with undisbursed loans counted as cancelled, the Minnesota ceiling stays at 23.5%. As for charge-offs, the Minnesota funded cohort is too small, and a Minnesota blank is not a clean bill. Self storage cannot be told from RV and boat storage in Minnesota's counts. Financing without SBA never enters Minnesota's tables.

What a Minnesota storage study must prove

A 504 storage loan finances buildings, so phasing is the main lever: show which phase a loan near $481,500 funds and what occupancy the next phase waits for. Supply is the first risk, so count storage space near Anoka per household and the share already full. Everything hinges on lease-up, so keep early occupancy low for a long time and show the payments still met. Climate control, security and unit mix change the cost. Appraisers value stabilized facilities on income and discount empty ones heavily.