Industry data
Financing for limited-service restaurants: what the loan data shows
7,188 SBA 7(a) loans went to limited-service restaurants recently, at a median of $325,000. The lenders that make them, the terms they write, and what underwriters look at.
7,188 SBA 7(a) loans went to limited-service restaurants in the most recent fiscal years, at a median of $325,000 over 10 years. 56.6% went to new or under-two-year-old businesses, and the most active lender was The Huntington National Bank.
Also searched as: fast food, quick service and fast casual restaurant loans.
What a limited-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 | Limited-service and fast-casual restaurants | All 7(a) borrowers |
|---|---|---|
| Loans approved, fiscal years 2023 to 2026, using data released June 2026 | 7,188 | 214,102 |
| Median loan | $325,000 | $150,000 |
| 25th - 75th percentile | $100,000 - $582,175 | $50,000 - $500,000 |
| Median term | 10 years | 10 years |
| Median initial rate | 10.00% | 10.25% |
| Share to new businesses | 56.6% | 33.6% |
| Charge-off rate, FY2010-19 | 9.4% | 7.1% |
What stands out
Reading these figures against all 7(a) borrowers:
- Loans here run larger than average. The median of $325,000 is 117% 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.
- New businesses do well here. 57% of these loans went to startups or businesses under two years old, against 34% nationally — an unusually open market if you have no trading history.
- Lending here is fragmented. The top three lenders made only 25% of these loans between them, so no single institution owns this market. That is good news: it means shopping genuinely pays.
- Lenders have been burned here before. 9.4% of loans to this market from the FY2010-2019 cohorts were charged off, against 7.1% overall. That history is why underwriting in this sector is tighter than the numbers alone would suggest — it is not personal.
Which lenders actually fund limited-service restaurants
Ranked by loans approved in this niche. The median, startup share and rate describe each lender's own loans to limited-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 | 1,183 | $150,000 | 78% | 10.25% |
| Live Oak Banking Company | 309 | $555,000 | 62% | 9.50% |
| Manufacturers and Traders Trust Company | 276 | $65,000 | 56% | 10.50% |
| Newtek Bank | 198 | $200,000 | 31% | 10.62% |
| U.S. Bank | 171 | $40,000 | 35% | 9.49% |
| Readycap Lending, LLC | 137 | $201,000 | 31% | 11.25% |
| TD Bank | 129 | $50,000 | 40% | 10.50% |
| Northeast Bank | 124 | $136,300 | 15% | 10.75% |
| Celtic Bank Corporation | 114 | $202,000 | 40% | 10.25% |
| KeyBank | 113 | $280,000 | 82% | 10.50% |
Where these businesses borrow
Most active states for limited-service restaurants: California (879), Texas (591), Florida (466), New York (379), Ohio (337), Georgia (322).
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 limited-service restaurants rather than true of any business.
What you are actually financing
| Transaction | What it involves |
|---|---|
| Franchise unit, new build | Franchise fee, build-out, equipment and opening working capital. The franchisor's published range is the starting point, not the answer. |
| Buying an existing franchise unit | Usually easier to finance — there are real numbers for that specific unit. |
| Independent fast-casual | Cheaper to start, harder to finance, because there are no comparables. |
| Drive-through | Adds a property and site-work dimension; often a 504 conversation. |
Matching the money to the transaction
A franchise unit
Franchise financing — almost always SBA 7(a), and brand eligibility matters.
The property
Equipment
Opening working capital
Arrange it with the deal, not after. New units fail in month four, not month one.
The numbers this sector is judged on
- The brand's unit economics. For a franchise, the brand is underwritten alongside you — the FDD's financial performance representations and the unit turnover figures do a lot of the work.
- Your equity injection. For a business operating a year or less the SBA requires at least 10% of total project cost, and lenders frequently want more. See equity injection.
- Site and traffic, especially for drive-through formats.
- Labour model, since this format lives and dies on throughput per labour hour.
The obstacle specific to this sector
The sector-specific paperwork
- The FDD, read properly — litigation history and unit turnover, not just the glossy part
- Conversations with current and former franchisees, who are listed in it
- Total project cost including several months of operating expenses
- Proof of your equity and where it came from
- The site, the lease and any traffic study
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.