How we can help
Our fast program is for restaurants already open at least 30 days. New concepts usually start with SBA financing. Once you're open, we can fund equipment and growth quickly.
Check if my restaurant qualifies →Key takeaways
- Most new restaurants are funded with a stack: owner cash, an SBA 7(a) loan, equipment financing, and sometimes investors or a landlord allowance.
- Lenders bet on the operator. Kitchen or restaurant management experience matters as much as your credit score.
- Budget 3–6 months of operating expenses as working capital. Ramp-up is slower than most projections assume.
Market overview
- Main sources
- SBA 7(a), owner equity, investors, equipment financing
- Your cash in
- Often 10%–30% of total costs
- Key requirement
- Restaurant experience + a credible business plan
- Time to fund
- Typically 2–4 months for SBA
Typical market ranges, not offers.
Where startup restaurant funding comes from
| Source | Typical share | Notes |
|---|---|---|
| Your own cash | 10%–30% | Lenders want to see you have real money at risk |
| SBA 7(a) loan | 50%–80% | The most common startup loan; long terms keep payments manageable |
| Equipment financing | Varies | Can reduce how much the SBA loan has to cover |
| Investors / partners | Varies | Equity you don't repay, but you give up ownership and control |
| Landlord TI allowance | Varies | Landlord funds part of the build-out in exchange for lease terms |
| Crowdfunding | Small share | Rewards or investment crowdfunding; also builds an early customer base |
What lenders want from a new restaurant
- Experience: years managing a kitchen or restaurant, or a partner or GM who has them
- Business plan: concept, location analysis, menu pricing, staffing, and month-by-month projections with a slow ramp-up
- Equity: at least about 10% of total project cost for SBA, often more
- Credit: personal scores in the mid-600s or higher for SBA
- Location: a signed lease or LOI with enough term, and permits on track
- Itemized budget: contractor bids, equipment quotes, opening inventory, pre-opening payroll
Build realistic numbers
- Model prime cost (food + labor) at a realistic 60%–65% of sales, not the 50% you hope for
- Show a ramp-up: most new restaurants take months to reach steady sales
- Include pre-opening costs: training payroll, soft-opening comps, marketing
- Keep a contingency of 10%–15% on construction. Restaurant build-outs almost always run over
- Plan for 3–6 months of working capital after opening day
Our fast-funding program and startups
Our fastest program is built for restaurants that are already open. If you're pre-opening, an SBA loan is usually the right route. Once you've been open a month or more, we can fund equipment, working capital, and growth quickly.
For the full step-by-step, read how to finance a restaurant.
Frequently asked questions
How do I get funding to open a restaurant?
Can I get a restaurant startup loan with no experience?
How much money do I need to open a restaurant?
Sources
We cite primary sources: federal agencies, regulations, and official program rules. Rules vary by state and change over time.
General education, not legal, tax, or financial advice. Loan programs, licensing rules, and lender requirements change and vary by state. Disclosures.