Restaurant loans
Find out how to secure a restaurant loan in 2026, from credit thresholds to approval timelines and special programs for bad credit or seasonal revenue.
Yes — you can get a restaurant loan with a 620‑679 FICO score, a 25% down payment, and 24+ months in business, usually within 30‑45 days. Check the rate you qualify for in 2 minutes — no credit‑score hit.
Short answer
Yes — you can get a restaurant loan with a 620‑679 FICO score, a 25% down payment, and 24+ months in business, usually within 30‑45 days.
Check the rate you qualify for in 2 minutes — no credit‑score hit.
The specifics
The most common path for independent owners in 2026 is the SBA 7‑a loan, which offers 8‑10% APR for good‑credit applicants and 10‑13% for fair credit. A 620‑679 FICO score puts you in the fair‑credit band, allowing approval if you can demonstrate 24+ months of continuous operation, $250,000+ in annual gross revenue, and a debt‑to‑income ratio below 40% of gross monthly revenue SBA 7‑a guidelines.
Equipment financing often comes faster—30‑45 days with a 15‑20% down payment— and APR ranges from 9‑12% in 2026, giving you quick access to ovens, freezers, or POS upgrades SBA equipment finance.
If you prefer a working‑capital line, lenders typically set APRs at 10‑16% and limit the utilization cap to 70% of gross monthly revenue, with repayment tied to revenue cash flow. This is especially useful for restaurants with uneven seasonal spikes.
Want a specific example? A New Orleans chef used an SBA 7‑a to buy a commercial kitchen, scoring 635 FICO and closing in 35 days—details are in the New Orleans Restaurant Financing Solutions post.
How to assess your eligibility
- Credit score: 620‑679 for fair, with higher APR if below 600. Soft pull checks avoid score impact soft pull credit impact.
- Revenue: 8‑12% of gross monthly revenue should cover the monthly payment; keep debt service under 15‑20% of revenue.
- Cash reserve: 3‑6 months of operating cash is advised, especially for seasonal venues.
- Collateral: Offering equipment or real property can reduce APR by 1‑3 points.
If your score is below 620, see the Bad Credit Financing Hub for lenders willing to fund at 5‑15% APR. Bad‑credit lenders are reviewed on the /bad-credit-farming-hub page.
Qualification & edge cases
Many small‑unit operators find that an SBA 7‑a still requires a collateral pledge; if none available, a secured line of credit may be the only option. Restaurateurs who have been in business <24 months may need to build a stronger cash flow history or secure a personal guarantee.
If you are a multi‑unit operator, bundled same‑brand equipment loans are available where purchase and financing are handled in one transaction—great for expansion projects.
Loans for equipment usually close faster and are less sensitive to credit than general business loans. If you have a recent bankruptcy, some lenders offer a 6‑month waiting period, but the SBA requires 3 years for a new loan.
Background & how it works
Restaurant loans cover a wide spectrum: from quick working‑capital advances to long‑term capital for expansion or new unit ownership. The industry in 2026 is still tightening, with average approval rates hovering at ~35% for all‑commercial restaurant loans, according to the Restaurant Business Loan Statistics. The National Restaurant Association reports stable cash flow for 85% of 2026‑started restaurants, making lenders more comfortable with risk as long as revenue stability is proven 2026 State of the Restaurant Industry.
Typical loan terms range from 36 to 84 months; the longer the term, the higher the total interest cost—about 20‑30% higher for 72‑84 months compared to 48‑60 months SBA 7‑a rate range. Tax deductions such as the 2026 Section 179 limit allow you to write off up to $1,220,000 of equipment cost in the first year, making acquisition financing even more attractive.
Bottom line
Restaurant owners in 2026 can secure financing—whether an SBA 7‑a, equipment loan, or working‑capital line—by meeting the 24‑month, 620‑679 FICO, and 30‑45‑day approval criteria. The quickest path often comes from a lender that offers a soft pull and a transparent rate preview in minutes.
Disclosures
This content is for educational purposes only and is not financial advice. myrestaurant.finance may receive compensation from partner lenders, which may influence which products are featured. Rates, terms, and availability vary by lender and applicant qualifications.
Sources
Related questions
What credit score is needed for a restaurant loan?
A FICO score of 620‑679 qualifies for fair‑credit loans, while 740+ opens the door to lower‑rate SBA 7‑a loans.
How long does it take to get a restaurant loan?
Typical processing is 30‑45 days for equipment financing and SBA 7‑a loans, though some lenders offer faster lines of credit.
Can I get a restaurant loan if I have bad credit?
Yes, bad‑credit specialists and certain equipment lenders offer programs that work with scores as low as 500, but rates are higher.
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