Property Type

Restaurant Property Loans for Owner-Operators.

From fast casual to full-service dining — finance your restaurant property purchase, buildout, or refinance with SBA, conventional, and specialized food service lending options.

90%
Max LTV (SBA)
5.5–9%
Rate Range
$80–200/sf
Typical Buildout
25 yr
Max Term
No credit impact SBA specialists Food service experience No upfront fees
RESTAURANT TYPES

What Type of Restaurant Property Are You Financing?

Restaurant real estate is one of the most specialized CRE asset classes. Lender appetite depends on concept type and operator track record.

Full-Service Restaurant
Sit-down dining, bar, kitchen
Free-standing or end-cap locations with full kitchen, dining room, and bar. Highest buildout cost but strongest revenue per sqft. Lenders require 2–3 years operating history and proven concept.
Fast Casual / QSR
Counter-service, drive-thru potential
Chipotle-style counter service or drive-thru concepts. Lower buildout cost, higher volume. Franchise locations get premium financing. Drive-thru pads are among the most liquid CRE assets.
Franchise Location
Brand-backed, proven systems
McDonald's, Subway, Chick-fil-A, regional brands. Franchise backing significantly improves lender confidence. SBA is the #1 financing path. Some franchisors have preferred lender programs.
FINANCING OPTIONS

Loan Options for Restaurant Properties

SBA is the dominant financing path for restaurant owners. Conventional is available for established multi-unit operators.

SBA 504
Best for buying your restaurant building
Rate5.5–7.5% fixed
LTVUp to 90%
Term20–25 years
TI CostsIncluded in loan

Kitchen buildout, hood systems, walk-in coolers, and grease traps can be rolled into the total project cost. 10% down for existing buildings.

SBA 7(a)
Real estate + equipment + working capital
RatePrime + 2.75%
Max Loan$5M
TermUp to 25 years
FlexibilityMulti-purpose

One loan covering property, equipment (ovens, POS, HVAC), buildout, and opening working capital. Most flexible for new restaurant launches.

Conventional Bank
Established multi-unit operators
Rate6.5–9%
LTV65–75%
Term5–20 years
Down Payment25–30%

Faster than SBA but higher down payment. Best for multi-unit franchisees or operators with 5+ years and strong financials.

Equipment Financing
Kitchen equipment only
Rate7–12%
Term3–7 years
CollateralEquipment itself
Speed7–14 days

For operators who need equipment separately from real estate. Ovens, walk-ins, POS systems, furniture. Fast approval.

KEY METRICS

What Lenders Evaluate for Restaurant Loans

Operating History
2–3 years minimum
Proven revenue track record critical
DSCR
1.25x+ (global)
Restaurant + personal cash flow combined
Credit Score
680+
Franchise operators may get flexibility
Buildout Cost
$80–$200/sf
Hood, grease trap, walk-in, plumbing, ADA
Franchise Backing
Significantly helps
National brands unlock preferred lending
Down Payment
10–30%
10% with SBA, 25–30% conventional
THE PROCESS

How Restaurant Property Financing Works

01

Define Your Project

Buying an existing restaurant, building out a new space, or purchasing land for a drive-thru? Share property details, concept, and buildout scope.

02

Submit to BestLoanUSA

Single application with restaurant financials, personal credit, and project details. No hard credit pull.

03

Advisor Review with Jason

Jason evaluates your concept, operating history, franchise backing, and buildout requirements to recommend SBA, conventional, or combined financing.

04

Lender Matching

We submit to food-service-experienced lenders. Franchise operators may access preferred lender programs.

05

Underwriting & Appraisal

Restaurant-specific appraisal. Provide 2–3 years tax returns, P&L, bank statements, franchise agreement (if applicable), and buildout estimates.

06

Close & Build Out

SBA: 60–90 days. Conventional: 30–45 days. TI funds released on draw schedule during kitchen and dining room construction.

Ready to Own Your Restaurant Property?

No credit pull. No commitment. See what financing is available for your restaurant project.

FAQ

Frequently Asked Questions

Is it hard to get financing for a restaurant property?

Restaurant lending has a reputation for being difficult, but the reality depends on your track record. Established operators with 2+ years of profitable history, strong credit, and especially franchise backing can access competitive SBA and conventional financing. First-time restaurant owners face more scrutiny but SBA 7(a) remains available with a solid business plan.

Can I include kitchen buildout costs in my loan?

Yes. SBA 504 and 7(a) allow you to roll kitchen buildout, hood systems, grease traps, walk-in coolers, dining room renovation, and even equipment into the total project financing. One loan covers everything.

Does franchise backing help with financing?

Significantly. National franchise brands (McDonald's, Subway, Chick-fil-A, Wingstop, etc.) provide brand credibility, proven unit economics, and sometimes preferred lender relationships. Franchisees typically get better rates and higher approval rates than independent operators.

How much does a restaurant buildout cost?

Restaurant buildout typically runs $80–$200 per square foot depending on concept. Fast casual may be $80–$120/sf. Full-service with bar can reach $150–$200/sf. The kitchen hood system, grease trap, plumbing, and walk-in cooler are the most expensive individual components.

What if I'm a first-time restaurant owner?

First-time operators face higher scrutiny. Lenders want to see relevant food service experience (even as a manager), a detailed business plan, higher down payment (20–30%), and ideally franchise backing. SBA 7(a) is the most accessible path for first-time operators with strong personal credit and industry experience.

Should I buy or lease my restaurant space?

If you plan to operate for 5+ years and can afford 10–20% down, buying builds equity and locks in occupancy cost. SBA 504 makes this accessible at 10% down. Leasing preserves capital but exposes you to rent increases. Many successful restaurant groups own their flagship locations and lease secondary ones.