Financing a Restaurant in Texas: Your Loan Options
Restaurant loans are a specialized category of commercial financing. Lenders know that restaurants have one of the highest failure rates of any small business — which makes them cautious. But Texas has a booming food and hospitality industry, and experienced restaurant operators with proven concepts can access real capital. Here’s what’s available.
Types of Restaurant Loans in Texas
SBA 7(a) Loans for Restaurants
The most popular financing for restaurant acquisitions, build-outs, and working capital. SBA 7(a) loans offer up to $5,000,000, low down payments (as little as 10%), and terms up to 10 years for working capital or equipment and 25 years for real estate. If you’re buying an existing restaurant or acquiring the building, SBA is usually the first option to explore.
Requirements: 2+ years in the industry, 680+ credit score preferred, business plan for new concepts, and positive cash flow for existing restaurants.
SBA 504 for Owner-Occupied Restaurant Real Estate
If you own or plan to own your restaurant building, SBA 504 lets you buy it with as little as 10% down and lock in a long-term fixed rate on the SBA portion. Great for established operators buying their location.
Equipment Financing
Commercial kitchen equipment — ovens, refrigeration, hood systems, POS systems — can be financed separately from the real estate or build-out. Terms typically 3 to 7 years, secured by the equipment itself. Fast approval, minimal documentation.
Working Capital Loans for Restaurants
Restaurants are cash-flow volatile — a slow January can wipe out the profits from a busy December. Short-term working capital loans bridge those gaps. Invoice financing, lines of credit, and short-term business loans are all available. Most fund within 24 to 72 hours.
Hard Money / Bridge Loans for Restaurant Real Estate
If you need to acquire a restaurant building fast — before a competitor does — a hard money bridge loan closes in days. You then refinance into SBA or conventional financing once the business is established. Many Texas restaurant owners use this approach for time-sensitive real estate opportunities.
What Lenders Look for in a Restaurant Loan Application
- Experience: Have you operated a restaurant before? Industry experience dramatically improves approval odds
- Concept and location: Is the concept proven? Is the location viable — foot traffic, demographics, competition?
- Cash flow (existing restaurants): 2 to 3 years of P&L statements, tax returns, and bank statements
- Franchise vs. independent: Franchise brands (McDonald’s, Subway, etc.) have easier access to capital due to proven systems and brand recognition
- Personal credit: 650+ preferred for most programs; lower scores possible with strong collateral or SBA alternatives
- Down payment: 10 to 20% for SBA; 20 to 30% for conventional
Restaurant Loan Amounts and Terms
- SBA 7(a): Up to $5M, 10–25 year terms, 10% down
- Equipment financing: $10,000 to $500,000, 3–7 year terms
- Working capital: $10,000 to $500,000, 3–24 month terms
- Bridge / hard money: $100,000 to $5M+, 6–18 month terms
Franchise Restaurant Loans
Franchise restaurant financing is more accessible than independent restaurant loans because the brand’s track record reduces lender risk. Many SBA-approved lenders have franchise registries — if your brand is on the list, the approval process is streamlined. Franchise loans can cover franchise fees, build-out, equipment, and working capital in a single SBA loan.
Finance Your Texas Restaurant
Whether you’re opening your first location, acquiring an existing restaurant, or buying your building, we can structure the right financing. We work across all Texas markets and all restaurant types — fine dining, fast casual, QSR, food trucks, ghost kitchens, and more.
Apply Now — Restaurant Loan Pre-Qualification