SBA Loan for Restaurant Property: Own Your Space

For restaurant owners, the building is as important as the menu. Location drives foot traffic, and the physical space shapes the dining experience. But restaurant leases often include restrictive terms, annual rent increases, and the constant risk of non-renewal.

Owning your restaurant property eliminates these concerns while building equity in a valuable asset. SBA loans make restaurant real estate ownership possible with manageable down payments and favorable terms. The SBA 504 loan program is particularly well-suited for restaurant property purchases, offering fixed rates and as little as 10% down on owner-occupied real estate.

Food Service Properties Eligible for SBA Financing

Full-service restaurants
Fast-casual and quick-service restaurants
Bars and taverns
Coffee shops and cafes
Bakeries
Food halls and food courts (individual units)
Catering facilities
Ghost kitchens and commissary kitchens
Breweries and taprooms
Wineries with tasting rooms

SBA Loan Terms for Restaurant Properties

Loan Feature	Typical Terms
Maximum Amount	$5 million (7a) or $5.5 million (504)
Down Payment	15-20% (higher due to special-purpose nature)
Interest Rate	Prime + 2.25-2.75% or fixed (504)
Term	20-25 years for real estate
Equipment Inclusion	Yes - can include kitchen equipment

Special-Purpose Consideration: Restaurant properties are considered "special purpose" real estate because they're designed specifically for food service. This typically requires a larger down payment (15-20%) compared to general commercial property (10%).

What Makes Restaurant Properties Unique

Infrastructure Requirements

Commercial Kitchen: Ventilation, grease traps, fire suppression
Plumbing: Multiple sinks, floor drains, grease interceptors
Electrical: High-capacity for commercial kitchen equipment
HVAC: Make-up air systems, kitchen cooling
Storage: Walk-in coolers, dry storage, receiving areas

Location Factors

Visibility and signage opportunities
Parking availability
Foot traffic patterns
Competition in the area
Alcohol licensing (if applicable)

Include Kitchen Equipment in Your Loan

SBA loans can finance kitchen equipment along with the real estate:

Commercial ranges and ovens
Refrigeration and freezer units
Dishwashing systems
Food prep equipment
Point-of-sale systems
Furniture, fixtures, and decor

Tip: By bundling equipment with your real estate purchase in an SBA loan, you can finance everything with one application and one down payment, simplifying your financing. The same bundling approach is popular in hotel and motel SBA financing, where FF&E and real estate are combined into a single loan.

Ready to Own Your Restaurant Building?

Stop paying rent and start building equity. Get pre-qualified for SBA restaurant financing today.

Check Your Eligibility