How to get a loan for your restaurant
Most restaurants in 2026 get funded by matching the loan to the job: an SBA 7(a) or bank loan to open, buy or expand, SBA 504 or equipment financing for kitchen equipment and buildings, and a line of credit for slow weeks. Get free help from an SBA resource partner, prepare your file, and compare every offer before taking daily-payment money.
The short version
- Match the loan to the job: SBA 7(a) or a bank term loan to open, buy or expand.
- Use SBA 504 or equipment financing for buildings and kitchen equipment, and a line of credit for slow weeks.
- Get free help from an SBA resource partner and get your file ready before you apply.
- Compare every offer on total cost and payment schedule before taking daily-payment money.
Match the money to what you need it for
| Need | Usually fits | Read more |
|---|---|---|
| Open, buy or expand a restaurant | SBA 7(a) loan through a lender, or a bank term loan | How to qualify for an SBA loan, SBA 7(a) loans on SBA.gov, How to get a loan to buy a business |
| A building or major equipment | SBA 504 loan | SBA 504 loans on SBA.gov |
| Ovens, coolers, hoods and POS gear | Equipment financing | How to get equipment financing |
| Slow seasons, payroll and inventory | A business line of credit or working capital loan | How to get a business line of credit, Working capital loans |
| A small first loan | SBA microloan through a nonprofit lender, or a CDFI | How to get an SBA microloan, SBA microloans on SBA.gov, CDFI business loans |
For more on SBA programs, see our SBA guides.
Step 1: Get free help first
SBA resource partners, including Small Business Development Centers, SCORE and Women's Business Centers, help with restaurant business plans, projections and loan files at no cost. Find one near you through SBA's local resource partners page. Start your plan with the SBA guide to writing a business plan.
Step 2: Get your file ready
Lenders want to see that the restaurant can pay the loan back, including in slow months. Have these ready:
- A business plan with a short menu and pricing summary
- A cash-flow projection that shows your slow months
- Recent business bank statements
- Business and personal tax returns
- A simple profit and loss statement
- The lease or a letter of intent for the space
- Quotes for the equipment you plan to buy
- Your licenses and permits
See what documents you need for a business loan and how to build business credit.
Step 3: Find lenders and compare offers
Use SBA Lender Match to connect with lenders that make SBA loans. Also ask the community bank or credit union you already use. If your sales drop in certain seasons, try to open a line of credit while business is strong, so you can draw only what you need for payroll and inventory in the slow months and pay interest only on what you use. When offers come in, compare:
- The total cost of the money, not just the rate or factor
- The payment schedule: monthly, or daily or weekly
- What collateral is required
- Whether you must sign a personal guarantee
Opening a franchise restaurant
If you are opening a franchise, SBA lenders check the brand against the SBA Franchise Directory to see whether it is eligible for SBA financing. Check before you sign; see our guide to the SBA franchise directory check.
Why restaurants get so many cash advance offers
Restaurants take card payments every day, so they get many offers that are repaid from daily sales or daily bank debits. These are usually merchant cash advances, and daily payments can strain cash flow in a slow week. Some of these offers are called revenue-based or sales-based financing, but if repayment comes out of your daily card sales it works much like an advance, so ask for the total payback in dollars and compare it with a line of credit. Compare a line of credit or equipment financing first. Read is a merchant cash advance a good idea, merchant cash advance alternatives, business line of credit vs merchant cash advance and equipment financing vs merchant cash advance. If the calls never stop after you applied online, see how to stop MCA broker calls.
If you get turned down
Ask why, fix what you can and try again; see business loan denied: what to do next. Grants are small and competitive, but see small business grants open now.
Every other way to fund your business
See every way to fund your business. Opening a brand-new restaurant? Also see startup business funding.
See also: Where can I get funding for my business?
Sources
Checked on SBA.gov on October 26, 2026: 7(a) loans, 504 loans, Microloans, Lender Match, Local resource partners, Write your business plan, SBA Franchise Directory.
Last updated October 26, 2026
