Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Single-Use Business
Restaurant Loans
We are pleased to offer restaurant loans for the purchase or refinance of restaurants nationwide, from $1,500,000. Select Commercial specializes in restaurant financing for both seasoned operators and new owners, whether you are starting, buying or refinancing a restaurant. Because a restaurant is an owner-operated, single-purpose business, we place these loans mainly through SBA 504 and 7(a), with up to 90% financing. Compare today’s commercial mortgage rates.
Get a Free QuoteRestaurant Loan Rates & Terms
Rates updated as of August 23, 2026
| Loan Type | Rate* | Max LTV |
|---|---|---|
| SBA 504 (Fixed) | 6.03% | Up to 90% |
| SBA 7(a) (Variable) | 6.75% | Up to 90% |
- Restaurant purchase and refinance nationwide
- Up to 90% financing through SBA, 100% possible in some cases
- For seasoned operators and new owners
- Cash-out available for improvements or expansion
- Long terms, up to 25 years for real estate
- Loans from $1,500,000, no upfront fees
Rates last updated August 23, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary.
What a Restaurant Loan Can Cover
Many new owners underestimate the capital needed to open and run a successful restaurant operation. Beyond the real estate itself, we can finance:
- Acquisition of the real estate and the operating business
- Furniture, fixtures and equipment (FF&E)
- Closing costs
- Working capital
- Rehab, improvements and expansion
For a startup or an expansion, projection-based income can sometimes be used to qualify, an option traditional banks rarely match. Seller-financed restaurants can also be refinanced onto longer terms.
Three Main Sources of Restaurant Financing
There are three main sources of restaurants financing, and as a broker we compare all of them for your deal:
- SBA loans (504 and 7a): the most common route for restaurants, offering high leverage up to 90%, long terms and flexible underwriting for owner-operators.
- Seller financing: sometimes available on acquisitions, and often used alongside an SBA or bank loan.
- Conventional bank loans: available for stronger operators, though most conventional lenders steer clear of restaurants due to the specialized risk profile.
Restaurant Industry: 2026 Numbers
The restaurant business enters 2026 with record scale. Per the National Restaurant Association 2026 State of the Industry (February 2026):
- $1.55 trillion in projected 2026 sales, an all-time high, with modest 1.3% real growth.
- 15.8 million jobs, with more than 100,000 added this year.
- 7 in 10 consumers say they would dine out more with more disposable income, a deep well of demand.
- Costs stay the challenge: food, labor, insurance and swipe fees pressure margins, so refinancing at better terms matters more than ever.
We finance restaurants in every major market, including Texas, Florida, California, New York and Nashville, one of the nation’s hottest restaurant cities, plus dining metros such as Miami, Austin, New Orleans, Las Vegas and Chicago.
Restaurant Lending: 2026 Outlook
2026 is a record-scale, margin-pressured year for restaurants, and financing choices follow directly from that. Industry forecasts (February 2026) project $1.55 trillion in sales with modest 1.3% real growth, so revenue is there, but food, labor, insurance and swipe-fee costs keep squeezing operators. That makes two moves matter: refinancing existing debt onto longer, cheaper terms, and using SBA leverage to buy the building instead of renting, locking occupancy costs while more than 7 in 10 consumers say they would dine out more with more disposable income.
The SBA backdrop helps: FY2025 set a record at $44.8 billion in 7(a) and 504 lending, and the combined loan cap doubled to $10 million effective July 4, 2026.
Why a Restaurant Loan Specialist Matters
Most conventional lenders avoid restaurants because the real estate and the operating business are intertwined. Many small business owners looking to refinance or take cash out have trouble getting traditional bank loans because of their company size, a specialized property type, credit history, or difficulty producing tax returns. It is important to choose a lender who has experience with restaurants and understands how to analyze these transactions.
With more than 30 years of experience, we finance restaurants that generalist lenders will not, with no upfront application or processing fees and written pre-approvals within 48 hours. See our business loans and special-purpose pages for related options.
What Our Clients Say
“I needed an SBA loan and found Select Commercial. It was obvious Stephen knew everything about commercial loans. If you are starting a small business, definitely give them a call.”
Larry S. · Washington, DC“I needed a business mortgage for my small business. Stephen helped me the entire way and was always accessible. I highly recommend them.”
Jonathan M. · Seattle, WA“I am a veterinarian who purchased an existing practice. I was surprised to find a company that offered 100% financing at a good rate, with great terms and rates for medical office financing.”
Carol K. · Chicago, IL“Select Commercial offered 100% financing for my medical practice when my bank would have required 20% down. They delivered something my bank could not, and handled everything professionally.”
John C. · Boston, MAGet Your Restaurant Loan Quote
No cost, no obligation. Written answers within 48 hours from $1,500,000.
- No application or processing fees
- Written answers within 48 hours
- For 5+ unit and commercial properties, $1.5M and up