Restaurant and Food Service Business Loans
From startup cafés to multi-unit restaurant groups, PeerSense connects food service operators with the capital they need to open, expand, acquire, and thrive.
SBA 7(a) Loans for Restaurants
The SBA 7(a) program is the most versatile financing tool for restaurant owners. With up to $5 million available and down payments as low as 10%, it's the go-to option for equipment, working capital, acquisitions, and buildouts.
Equipment Financing
Commercial kitchen equipment, POS systems, furniture, fixtures, and technology upgrades.
Working Capital
Inventory, payroll, marketing, seasonal cash flow gaps, and day-to-day operations.
Restaurant Acquisition
Buy an existing restaurant, franchise location, or food service business with established cash flow.
Leasehold Improvements
Buildout costs, renovations, tenant improvements, and space customization.
Key SBA 7(a) Terms for Restaurants
- Down Payment: 10–15% typical for established restaurants, 15–20% for startups
- Term: 10 years for equipment and working capital, 25 years if real estate included
- Timeline: 45–90 days from application to funding
- Credit Score: 650+ preferred, 620+ considered with strong business plan
SBA 504 Loans: Buy Your Restaurant Building
Stop paying rent. The SBA 504 program allows restaurant owners to purchase the real estate where they operate with as little as 10% down and a fixed rate for 20–25 years. Build equity while you build your business.
10% Down Payment
One of the lowest down payment options available for commercial real estate purchase.
Fixed Rate
20–25 year fixed rate financing provides payment stability and predictable costs.
Owner-Occupied
Must occupy at least 51% of the building. Perfect for restaurant owners who want to own their location.
What Qualifies
- Purchase of land and building for your restaurant
- Construction of a new restaurant facility
- Major renovations and improvements to existing building
- Long-term equipment with 10+ year useful life
Loan Structure
Commercial Kitchen Equipment Financing
Get the equipment you need without depleting your working capital. Equipment leasing and financing options are available for all credit profiles, from startup restaurants to established multi-unit operators.
Kitchen Equipment
- Commercial ovens
- Ranges & cooktops
- Refrigeration units
- Freezers
- Dishwashers
- Food prep equipment
Front of House
- POS systems
- Tables & chairs
- Bar equipment
- Display cases
- Lighting fixtures
- Audio/video systems
Specialty Equipment
- Pizza ovens
- Espresso machines
- Ice machines
- Ventilation hoods
- Food trucks
- Mobile kitchens
Fast Approval
Equipment financing typically closes faster than SBA loans. Many programs offer same-day decisions and funding within 3–7 days.
- 550+ FICO accepted on select programs
- Startup restaurants considered
- Minimal documentation required
Flexible Structures
Choose between equipment loans (you own it) or leases (lower payments, upgrade flexibility). Both options preserve your working capital.
- $500 to $5M+ available
- Terms from 12 to 84 months
- Section 179 tax benefits available
All Credit Profiles Considered
Equipment financing is often more accessible than traditional bank loans. We work with lenders who specialize in restaurant equipment and understand the industry's unique cash flow patterns. Startup restaurants, challenged credit, and rapid growth scenarios all have options.
Fast Working Capital for Restaurants
Cash flow gaps don't wait. When you need capital quickly for day-to-day operations, PeerSense has access to fast-funding working capital programs that can fund in 24 hours to 5 days.
Seasonal Cash Flow Gaps
Bridge slow months, cover payroll during off-season, or prepare for peak season inventory needs.
Payroll & Staffing
Cover payroll gaps between revenue cycles, hire additional staff for expansion, or manage unexpected labor costs.
Inventory & Supplies
Stock up for catering events, bulk purchase opportunities, or seasonal menu changes.
Marketing & Growth
Launch marketing campaigns, grand opening expenses, or promotional events to drive traffic.
Working Capital Options
Fast Funding (24–48 Hours)
- Minimal documentation required
- Same-day decisions on some programs
- $7.5K–$500K typical range
Unsecured Lines of Credit
- 700+ FICO preferred
- $250K–$350K available
- No collateral required
When to Use Fast Capital vs. SBA
SBA working capital offers better terms and lower rates but takes 45–90 days. Fast working capital costs more but funds in 24 hours to 5 days. Match the product to the urgency. If you have time, SBA is better. If you need cash now, fast capital keeps you moving.
Explore All Working Capital OptionsRestaurant Acquisition Financing
Buying an existing restaurant or franchise location? SBA 7(a) loans are the most common financing tool for restaurant acquisitions, allowing you to finance goodwill, equipment, inventory, and working capital with as little as 10% down.
Established Cash Flow
Buying an existing restaurant means you're acquiring proven revenue, not starting from zero.
Trained Staff & Systems
Inherit existing employees, operational systems, and customer relationships.
Faster to Profitability
Skip the startup phase and begin generating income from day one.
What SBA 7(a) Covers in an Acquisition
- Goodwill & Intangible AssetsBrand value, customer lists, recipes, reputation
- Equipment & FurnitureKitchen equipment, POS systems, tables, chairs
- InventoryFood, beverages, supplies at time of sale
- Working CapitalOperating funds for first few months
- Leasehold ImprovementsRenovations or updates needed post-acquisition
- Real Estate (if included)Can combine with 504 for property purchase
Typical Acquisition Structure
Seller Note Options
In some cases, the seller can provide a note (seller financing) that counts toward your equity injection, reducing your out-of-pocket cash requirement. This is common in restaurant acquisitions and can make deals more accessible.
Related Resources
Food Processing and Production Financing
Scaling beyond a single restaurant location? PeerSense works with food processors, commissary kitchens, catering operations, and food manufacturers who need capital for facilities, equipment, and growth.
Production Facilities
Commercial kitchens, processing plants, packaging facilities, and distribution centers.
Processing Equipment
Industrial mixers, packaging lines, refrigeration systems, and specialized machinery.
Distribution & Logistics
Refrigerated trucks, delivery vehicles, warehouse equipment, and inventory systems.
Deal Example
$1.1M SBA 7(a) for food processing facility buildout — 45-day close
A regional catering company needed to expand from a shared commissary kitchen into their own USDA-approved processing facility. PeerSense structured an SBA 7(a) loan covering leasehold improvements, commercial equipment, working capital, and initial inventory. The facility opened on schedule, and the company doubled production capacity within six months.
Who This Serves
- Commissary kitchens and ghost kitchens
- Catering companies scaling operations
- Food manufacturers and co-packers
- Specialty food producers (bakeries, breweries, etc.)
- Restaurant groups with central production
Financing Options
- SBA 7(a) & 504Best for facility buildouts and major equipment
- Equipment FinancingFast approval for processing equipment
- Working CapitalInventory, payroll, and operational expenses
- USDA B&IFor rural food processing operations
Frequently Asked Questions
Common questions about restaurant financing
For SBA 7(a) loans, typical down payments are 10–15% for established restaurants and 15–20% for startups. For SBA 504 loans (real estate), the down payment is 10%. In some cases, seller notes or other eligible equity sources can reduce your out-of-pocket cash requirement.
Yes. Startup restaurants can qualify for SBA loans and equipment financing. Lenders will evaluate your business plan, industry experience, credit score, and liquidity. Equipment financing is often more accessible for startups than traditional bank loans, with some programs accepting 550+ FICO scores.
Timeline varies by product: SBA loans typically take 45–90 days from application to funding. Equipment financing can close in 3–7 days. Fast working capital programs can fund in 24–48 hours. The timeline depends on documentation completeness and lender workload.
Most restaurant financing programs require 680+ credit as a baseline. For equipment financing backed by strong collateral, lenders may evaluate the equipment quality and restaurant cash flow alongside credit profile. SBA programs have their own credit standards and may offer more flexibility for qualified restaurant operators.
Yes. SBA 7(a) loans are commonly used for restaurant acquisitions, covering goodwill, equipment, inventory, and working capital. You can finance up to $5M with as little as 10% down. Buying an existing restaurant is often easier to finance than a startup because there’s established cash flow and operating history.
Equipment loans: You own the equipment from day one, can claim depreciation, and build equity. Equipment leases: Lower monthly payments, easier to upgrade equipment, and may include maintenance. Both preserve working capital. The best choice depends on your cash flow, tax situation, and how long you plan to use the equipment.
Yes. The SBA 504 program is designed for owner-occupied commercial real estate. You can purchase the building with as little as 10% down and get a fixed rate for 20–25 years. You must occupy at least 51% of the building. This is one of the best ways for restaurant owners to build equity while operating their business.
Fast working capital programs can fund in 24–48 hours with minimal documentation. Amounts range from $7.5K to $1M+, with 680+ FICO typically required. These programs cost more than SBA loans but provide immediate access to cash for payroll, inventory, or seasonal gaps. If you have time, SBA working capital offers better terms but takes 45–90 days.
Ready to Finance Your Restaurant?
PeerSense identifies the right capital source from our network of 500+ lenders, private equity firms, and institutional advisors — and makes the introduction. You get a straight assessment of where your deal fits and a direct connection to the source most likely to close it.
Whether you're opening a new location, acquiring an existing restaurant, or expanding your concept, we'll connect you with the right capital structure for your restaurant business.
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