SBA 7(a) RESTAURANT LOANS

Longer Repayment Terms

SBA 7(a) loans offer repayment periods up to 10 years for business needs like working capital or equipment and up to 25 years for real estate. Loans with terms shorter than 15 years allow penalty-free early repayment. For terms over 15 years, prepayment penalties apply in the first three years: 5% in year one, 3% in year two, and 1% in year three. After this period, you can repay in full without penalties, offering financial flexibility.

Competitive Interest Rates

Take advantage of the competitive interest rates offered by SBA 7(a) loans to reduce your financing costs and maximize your profitability. The government partially guarantees these loans, reducing our risk and allowing us to offer you better interest rates.

Lower Down Payments

The government guaranty also enables small business owners to secure financing with lower down payments compared to traditional business loans, typically up to 20% of the total project cost but in some cases as low as 0%.

Flexible Use of Funds

The SBA 7(a) loan program is widely regarded as a top choice for small businesses due to its unmatched flexibility. Unlike many traditional loans that impose strict limitations, 7(a) loans empower businesses to meet a variety of financial needs, making them versatile for nearly any business purpose or stage of growth.

Buy a Restaurant

Acquiring an established restaurant with an SBA 7(a) loan allows you to take over a business with an existing customer base and operational framework. With flexible financing and manageable down payments, you can secure ownership while keeping capital available for staffing, marketing, and improvements.

Renovate Your Existing Facility

Upgrading your restaurant’s dining area, kitchen, or exterior can enhance the customer experience and boost revenue. An SBA 7(a) loan provides financing for renovations, modern equipment, and facility improvements to keep your restaurant competitive.

Build a Restaurant

Constructing a new restaurant from the ground up allows you to design a space tailored to your concept and target market. An SBA 7(a) loan offers funding for land acquisition, construction, furnishings, and kitchen equipment, often with up to one year of interest-only payments during the build-out phase.

Refinance High-Interest Debt

Lowering your monthly payments through an SBA 7(a) loan can free up cash flow for operational improvements and growth. Refinancing high-interest debt allows you to secure better loan terms, reduce costs, and reinvest in your restaurant’s success.

Open a Second Location

Expanding your restaurant to a second location is a great way to grow your brand and reach new customers. An SBA 7(a) loan provides financing for leasehold improvements, equipment, and startup costs, helping you scale your business while maintaining financial stability.