SBA 7(a) Self Storage Feasibility Study in Pennsylvania

Pennsylvania self storage sits at 0.51x the nationwide 7(a) self storage median, the clearest feature of this cell. A median of $500,500 and a middle half from $212,625 to $1.3 million across 32 loans describe small projects: conversions of existing buildings, expansions of a few buildings, and modest acquisitions, more than ground-up complexes. Total dollars are $24.5 million over FY2017 to FY2026. The state ranks 17 on loans counted, and storage is 22 of 39 among its classes. Chains account for 15.6% of loans.

Live Oak and a regional bank

Of the two lenders listed, Live Oak Banking Company carries 12 loans for $12.8 million, while First Commonwealth Bank carries 7 for $2.0 million, an average far below the cell median. The two sit at opposite ends of the size range, and both figures are SBA's records of notes held, with no bearing on method. Westmoreland County has 4 loans, Allegheny and Fayette 3, Bucks, Venango and York 2, and Butler, Cambria, Chester and Delaware 1. The strength of western counties such as Westmoreland and Fayette shows a market outside Philadelphia.

Years

No loans were approved in FY2018, and there were only 2 in FY2017. Activity built to 6 loans and $4.7 million in FY2021 and 7 in FY2022, then eased to 4 in FY2023 and a single loan of $2.0 million in FY2024. FY2025 had 3 loans and $4.4 million, and FY2026 a single loan of $155,000. The cell shows no steady direction.

What is missing

Pennsylvania gives no percentages for cancellation or charge-off, the cohorts being small. Camper and boat storage lacks its own code, so a few loans may finance vehicle lots.

Pennsylvania storage study questions

The study has to compare the project with competing facilities by square foot and rent, test whether an old industrial or retail building can be converted at a cost per unit that works, check municipal zoning and fire rules, and model lease-up months. Conversion projects carry hidden costs, such as roofs, floors and sprinkler systems, so the budget needs a contingency. At a loan this small, the borrower's other income and experience weigh heavily. The appraisal should consider value in an alternative use and not only as storage.