SBA 7(a) Self Storage Feasibility Study in Illinois

Illinois storage loans run larger than the national pattern

Self storage financed under 7(a) in Illinois is larger than the nationwide average for the class. The median loan of $1.1 million is 1.16x the national figure, and the middle loans fall from $480,000 to $2.2 million. In the ten fiscal years SBA approved 51 such loans worth $85.7 million. Illinois ranks 10 among states by count; inside Illinois, storage is a minor class at 20 of 39. Franchising is only 3.9%. The cell reads as a bigger-ticket version of the national picture.

Two lenders and the collar counties

Live Oak Banking Company has 22 loans and $55.7 million, and Bank Five Nine 16 loans and $18.8 million, which together dwarf everything else in the lender table; both entries reflect current holders in SBA's records. Geography: Lake County leads with 10 loans, Madison follows with 8, Cook has just 6, La Salle 5 and Saint Clair 4. A study must judge its own market instead of leaning on the average. Approvals ran 8 loans and $16.6 million in FY2017 and 9 loans and $14.3 million in FY2018, then slowed, with 1 loan and $1.5 million in FY2023 and 3 loans and $3.2 million in FY2026.

At least 14.0% of approvals through FY2024 were cancelled, with no difference at the ceiling. Loan Analytics prints no Illinois charge-off rate here, since the funded cohort is under 30 loans; the blank carries no message about whether any failed.

What an Illinois storage study must test

SBA gives RV and boat storage no code of its own, so a project aimed at that use is lumped with ordinary units, and a study should say which it is. The first test is supply: facilities within a short drive, their rents per square foot of different unit types, and how full they are. The second is cost. At a loan near $1.1 million, the model needs a lease-up ramp with a downside case and should show how interest is carried while units fill. Zoning, access and visibility should be confirmed. An appraiser will value stabilised income, which means the study has to show how the facility reaches it.