restaurant financing


SBA loan brokerIs This Your First Venture?

We have money available for you! Most banks view bars and restaurants as high-risk ventures but we understand the business and broker exclusively to bars and restaurants. 



What is SBA Lending for Financing a Restaurant?


SBA loans have the backing of the Small Business Administration or SBA.  While the SBA does not ISSUE loans (a common misconception) they do GUARANTEE loans.  That makes banks more willing to accept risk since the government is standing behind the deal and guaranteeing as much as 80% or 90% of their risk.

With terms as long as 25 years, low monthly payments and fixed rate options, SBA backed loans are the type of loans that work in large restaurant acquisitions.  The only caveat – the restaurant for sale must have a track history of results and multiple years of tax returns to qualify.  Anything advertised by restaurant brokers as “Pre-Qualified for SBA lending” or stating “Excellent Books and Records” is a candidate for financing a restaurant with a bank.


Benefits of SBA financing for purchasing a restaurant


Payments are fixed and fully amortized meaning there are no balloon arrangements.  That’s a benefit over owner financing where it is more typical to see balloon payments (a large single payment at the end of a series of smaller monthly payments).  We also typically see lower monthly payments that are easily reached through the cash flow of the business since this is part of the lender’s analysis before granting the loan.


Down payments range from 10 – 30% according to many lenders.  It is rare however, that the we see any down payment lower than 20% and that’s an improvement we’ve observed in the past year or so.  In '08,'09 and '10 on the heels of the recession, it was typical to see banks request as much as 35% down. 


Terms can be as long as 25 years though it’s much more typical to see them at 10 years.  In general, the term of the loan must match to the length of the franchise and the length of the lease.  You can’t have a loan on a business for 10 years with a lease that’s for 8 years or a franchise for five years.  The good news on a ten year term is that there are no prepayment penalties on loans under 15 years which means you can pay off early with no additional costs.


Fixed rate options are the standard on an SBA backed loan.  That gives you security as a buyer of what your payments will be over the term of the loan unlike a variable rate.


Disadvantages of SBA Financing for Buying a Restaurant


High upfront costs in the form of origination and other bank fees. 

Another drawback on an SBA loan can be the sheer amount of paperwork.  If you aren’t good at keeping up with your tax records, financial statements and filling out forms, this might not be the right course for financing a restaurant.


Lastly, the government is very inflexible on certain key points.  If the loan exceeds $350,000, they will not budge on a requirement that your personal residence service as additional collateral on the loan. That can be off-putting if you’re financing a restaurant purchase and want to leave your personal residence off the table.  They also require that your spouse be part of the personal guarantee on the loan.


If you’re doing a franchise start up, SBA lenders are also ready to lend, particularly if the franchise has been listed on the Franchise Registry.  This is the program for lenders where franchises submit their financials up front for their open and operating stores making the construction loan a simple process.


 The 10% Down SBA 504 Loan

The Small Business Administration developed the 504 loan program to assist small businesses in obtaining financing for hard assets (land, building, and equipment with a useful life of ten years or more). Some soft costs — such as interim interest, accounting, legal, appraisal, architectural, and engineering fees — are also eligible. Under the program, a private sector lender lends the applicant up to 50% of the eligible project cost. The small business contributes at least 10% of the project cost (start-up businesses must contribute an additional 5%, and single purpose facilities must contribute an additional 5%). The borrower obtains the remaining 30% to 40% from the SBA. The interest rate on the SBA loan is fixed for the term of the loan, and depending on the collateral, the borrower has a choice of ten or twenty years for the term. The SBA requires the private sector lender to make its loan for at least ten years with no balloon payments. However, that lender may adjust its interest rate on a periodic basis. The borrower has two loans: one with the bank and one with the SBA. The private sector lender is secured with a first lien against the collateral, and the SBA is secured with a second lien against the collateral. The 504 program requires that for every $65,000 that the SBA lends, the small business must create or save one full-time job or the equivalent.

The minimum amount for an SBA 504 loan is $25,000, and the maximum amount is $5,500,000. In no case can the SBA 504 loan exceed 40% of the project cost.

The SBA 504 loan program is available throughout the State of Georgia through the Georgia Small Business Lender (GSBL).

On February 28, 2011, the U.S. Small Business Administration began to allow the 504 loan program to be used to refinance existing debt

The Small Business Administration is a great resource for financing a restaurant as long as you are aware of the work and costs associated with this path. 

SBA 504 Loan Forms


Loan application checklist




Statement of Personal History


Personal Financial Statement



504 Application


 Restaurant fnancing

401K Conversion for Financing a Restaurant


The Bank of You is also known as your own 401K savings. Restaurant buyers often overlook these funds as a source of capital for financing a restaurant purchase without realizing there are multiple ways to use 401K funds without facing a large tax bill from your Uncle Sam.


The easiest approach is to borrow against your 401K. In this option, you are able to simply use your own money as the security or collateral for a loan. The advantages of this option are:


Quick and Easy.


Credit Scores can be marginal as long as appropriate security is in place.


The second and most frequent approach the we see used by restaurant buyers is the 401K conversion method. In this option, your 401K is actually converted to capital for the investment using the Internal Revenue Service guidelines and is tax free. In this case, your new 401K is made up of your restaurant purchase.


Benefits of 401K Conversion for purchasing a restaurant


Short Time Frame. A 401K conversion can be completed in as few as 30 days, a standard amount of time in a closing of a restaurant for sale.


Simple to execute. As long as you use a knowledgeable group like Culinary Concepts & Consulting, the effort on your part is minimal. A top class firm like CCC will process all of the paperwork, do the legal and accounting effort to keep you in compliance with the IRS and transfer the money in time for you to buy a restaurant.


No Tax Consequences


Since you are only borrowing against the securities in your 401K account, there is no “cash out” that would trigger a tax event with the Internal Revenue Service.


Restaurant loans

Do You Already Own a Bar or Restaurant?


Could you use a quick $10,000 - $50,000? Perhaps you have been thinking about remodeling, adding an outdoor deck or even consolidating your bills? We are here to help you make your dreams possible by eliminating some of the typical financial restraints many owners are faced with. We will design a payment schedule customized to fit within your budget.

We have facilitated over $100 Million in funding to thousands of small businesses nationwide. Contact us today to see how we can help your business.


We Provide Small Businesses With The Capital They Need To Grow


Our lenders judge the health of your business based on your cash flow – not just credit scores. Our in depth understanding of small businesses means that we can provide capital to businesses in as fast as 7 business days.


About Our Loans

• True business loans - not merchant cash advances

• Loans ranging from $10,000 - $2,000,000

• 3, 6, 9, 12, 18 month terms

• Fixed interest and fixed payments

• Approvals in 2 business days

• Funding as fast as 7 business days

• Daily direct debit payments mean no worries about a large end of month payment

 Restaurant financing

Restaurant Equipment Leasing


Restaurant equipment loans are extremely important to all restaurant owners. When equipment breaks down beyond repair or the restaurant is in need of a much needed equipment update, equipment loans can provide the owner with a cost effective way to make the purchases they need. Starting a new restaurant requires the appropriate equipment to ensure that business flows properly. A restaurant equipment loan can provide a new or existing restaurant owner with the funding they need to buy the equipment for their business.



What is a Restaurant Equipment Loan?

A restaurant equipment loan is a loan that is designed for purchasing the equipment required for a restaurant to function properly. Lenders of equipment loans often do not require any money down or collateral to receive the funding for your equipment purchase. Just as with other types of loans, failure to maintain a repayment agreement can result in repossession of the restaurant equipment.

Common Uses for Restaurant Equipment Loans



Ice machines

meat saws


Coffee makers



and much,  much more.

Often restaurant equipment loans are used to make purchases of large equipment but can be used to purchase things such as aprons and trays. When taking out a restaurant equipment loan it is necessary to have an itemize list of the purchases the loan is required for.

Terms and Conditions of Restaurant Equipment Loans

A restaurant equipment loan is to purchase needed equipment to run your business efficiently. Providing an itemized list with pricing or the equipment you wish to purchase for your restaurant is necessary. Every lenders terms and conditions vary, often they require a good credit history, collateral, cash or documentation of good merchant revenue history.

How to Get a Restaurant Equipment Loan

Make sure that you meet our lenders requirements, this could be collateral, cash, or a good credit history.

Negotiate the terms and conditions of the loan.

Sign the contract and set up a repayment schedule .

restaurant financing

restaurant loan approved


Past Clients

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