Industry data
Financing for full-service restaurants: what the loan data shows
10,029 SBA 7(a) loans went to full-service restaurants recently, at a median of $261,000. The lenders that make them, the terms they write, and what underwriters look at.
10,029 SBA 7(a) loans went to full-service restaurants in the most recent fiscal years, at a median of $261,000 over 10 years. 41.6% went to new or under-two-year-old businesses, and the most active lender was The Huntington National Bank.
Also searched as: sit-down restaurant loans, dine-in restaurant financing.
What a full-service restaurant loan actually looks like
These are approvals, not advertised ranges. Computed from SBA 7(a) loan-level FOIA data released 2026-06-30.
| Measure | Full-service restaurants | All 7(a) borrowers |
|---|---|---|
| Loans approved, fiscal years 2023 to 2026, using data released June 2026 | 10,029 | 214,102 |
| Median loan | $261,000 | $150,000 |
| 25th - 75th percentile | $80,000 - $648,600 | $50,000 - $500,000 |
| Median term | 10 years | 10 years |
| Median initial rate | 10.00% | 10.25% |
| Share to new businesses | 41.6% | 33.6% |
| Charge-off rate, FY2010-19 | 8.5% | 7.1% |
What stands out
Reading these figures against all 7(a) borrowers:
- Loans here run larger than average. The median of $261,000 is 74% above the $150,000 national median. Expect lenders in this market to be geared toward bigger deals, and expect a small request to get less attention.
- Startup share is about average, at 42% against 34% nationally.
- Lending here is fragmented. The top three lenders made only 20% of these loans between them, so no single institution owns this market. That is good news: it means shopping genuinely pays.
Which lenders actually fund full-service restaurants
Ranked by loans approved in this niche. The median, startup share and rate describe each lender's own loans to full-service restaurants, not its national averages — which is how you spot a genuine specialist.
| Lender | Loans | Median loan | Startup share | Median rate |
|---|---|---|---|---|
| The Huntington National Bank | 1,236 | $85,000 | 50% | 10.25% |
| Newtek Bank | 463 | $250,000 | 19% | 10.50% |
| Manufacturers and Traders Trust Company | 339 | $65,000 | 55% | 11.00% |
| U.S. Bank | 313 | $40,000 | 31% | 9.24% |
| Northeast Bank | 301 | $150,000 | 14% | 10.75% |
| Readycap Lending, LLC | 278 | $254,000 | 25% | 11.25% |
| Bank of Hope | 227 | $350,000 | 40% | 9.50% |
| TD Bank | 216 | $50,000 | 38% | 11.18% |
| KeyBank | 169 | $100,000 | 78% | 10.50% |
| Celtic Bank Corporation | 167 | $150,000 | 26% | 10.25% |
Where these businesses borrow
Most active states for full-service restaurants: California (1,316), Texas (761), New York (663), Florida (634), Ohio (456), Illinois (414).
Before you apply
- Check coverage first. Run the payment through the affordability calculator at 1.25x.
- Shortlist from the lender table, favouring ones whose median loan here is close to what you need.
- Assemble the documents — see the checklist.
- If you are buying rather than starting, read business acquisition loans first; the injection rules and diligence are different.
How to actually finance one
The data above says what lenders did. This is what the process looks like from your side, and what is specific to full-service restaurants rather than true of any business.
What you are actually financing
| Transaction | What it involves |
|---|---|
| Buying an existing restaurant | Often the cheapest route in. You get equipment, a build-out, a lease and a trading history a lender can underwrite. |
| New build-out from a shell | The most expensive and the hardest to finance. Kitchen equipment, hood and fire suppression, grease interceptor, HVAC, seating, POS. |
| Taking over a closed restaurant | Cheaper than a shell because the infrastructure is there. Find out why the last one closed before you celebrate. |
| Equipment only | Finance separately against the equipment and keep your working capital free. |
Matching the money to the transaction
Buying an existing restaurant
SBA 7(a) is the standard route — see buying a business.
Build-out of a leased space
7(a) can fund leasehold improvements, equipment and working capital in one loan. See construction loans for the fit-out specifics.
Equipment
Equipment financing, or leasing where you refresh on a cycle.
Buying the building too
SBA 504 — fixed for the whole term.
A gap between payroll and a slow week
A line of credit, arranged in a strong month.
The numbers this sector is judged on
- Prime cost — food plus labour as a share of sales. Lenders know the range for your format and will ask about anything outside it.
- Rent as a percentage of sales. The single number most likely to sink an application. A lease signed at the wrong rent cannot be fixed by financing.
- The lease itself — remaining term, options, assignment rights. A lender will not lend over a term longer than your security of occupation.
- Your experience. Operating experience in food service carries real weight, and its absence is the commonest reason a first-timer is declined.
- Alcohol licence status and transferability, where applicable.
The obstacle specific to this sector
The sector-specific paperwork
- Three years of the seller's tax returns if buying, not a profit and loss they typed up
- The lease, in full, including any assignment clause
- An itemised build-out and equipment budget with contractor quotes
- Your own experience, written down as a short operating history
- A sales projection with the assumptions visible — covers, average check, days open
The general list is in the document checklist, and the application readiness check will tell you how much of it you actually have. Before any of it, run the payment through the affordability calculator — coverage is the test most declined applicants actually failed.