Restaurant Loans
There are many loans available for restaurant properties. Find out which best meets your unique needs.
Whether you're with family, friends, or all by yourself, there's nothing like sitting down and being served a hot meal - and America tends to agree. In 2017, overall restaurant sales were estimated at $799 billion, while the restaurant industry employed a staggering 15 million people, around 10% of the U.S. workforce. Plus, projections suggest that around 1.6 million new restaurant jobs will be created in the next decade. This means that the industry has a lot of room for growth. So, if you're looking to open or expand a restaurant, Commercial Real Estate Loans is here to help.
We provide financing for both franchise and non-franchise restaurants, but do not provide loans for:
Startups without proven revenue
Restaurants where most of the revenue comes from alcohol
Restaurants with adult entertainment
Restaurant Loan Terms
In general, our restaurant loan terms include:
Loan Size: $500,000+
Loan Purpose: Loan can be used for property acquisition or refinancing, but cannot be used for business only-financing
Loan Term: 3, 5, 7 and 10-year fixed-rate terms
Amortization: 15, 20, 25 and 30-year options
Leverage: 75% LTV allowance (subordinate debt permitted)
DSCR: 1.40 minimum DSCR
Credit Score Requirement: 660 minimum
SBA Loans for Restaurants
While privately-insured loans are common in the restaurant industry, the SBA 7a and SBA 504 loan programs are also incredibly effective ways to finance your restaurant business. With SBA loans, restaurant owners can purchase property, buy equipment and get working capital for their business. While SBA loans have a lot of benefits, they do have stricter requirements than most other kinds of financing, including increased credit score requirements.
CMBS Loans for Restaurants
For restaurant owners seeking a larger amount of commercial property financing, Commercial Real Estate Loans can arrange conduit loans, otherwise known as CMBS loans, for eligible projects. Our typical CMBS loans include:
Loan Size: $2 million and up
Loan Term: 5-, 7-, or 10-year fixed-rate loans
Amortization: 30 years
Leverage: 75% maximum LTV allowance
DSCR: 1.25 minimum
Recourse: Non-recourse (with standard carve-outs)
Get Your Free Restaurant Property Loan Quote Today
Looking to get a fast, free quote? Pop your details in the form below. Our team will go to work at finding the best options available for you.