Owner-operator restaurateurs qualify for SBA 504 financing at up to 85% LTV with 25-year fixed rates typically in the 6.5%–7.5% range. Purchase your restaurant building with as little as 15% equity and include commercial kitchen build-out, dining room renovation, and equipment in the loan. SBA 504 provides the lowest-cost real estate financing available for restaurant operators.
Written by Ed Freeman, Capital Advisory — PeerSense
Acquire your restaurant property with SBA 504 financing. Up to 85% LTV, 25-year fixed rates typically 6.5%–7.5% (SBA 504), and include build-out costs for commercial kitchens and dining areas.
Minimum 30-35% equity required. Restaurant owners purchasing the building where they operate, with 3+ years of profitable operations, strong personal credit, and adequate liquidity.
LTV Target
Up to 85%
Est. Rate Range
6.5% – 7.5% (SBA 504 fixed)
Term
25 years fixed (real estate) / 10 years (equipment)
Recourse
Full recourse (personal guarantee)
DSCR
1.15x minimum
Closing Speed
60-90 days
Min Loan Size
$250K
Loan Products
SBA 504
SBA 504 is ideal when you are a restaurant operator purchasing the building where you do business. The 51% owner-occupancy requirement means you must operate your restaurant in the space. This financing is particularly powerful for established restaurants spending $5,000-$20,000+ monthly on rent — converting that lease expense to a mortgage payment builds equity. Include commercial kitchen renovations, walk-in coolers, HVAC for kitchen exhaust, and dining area improvements in the loan. If you are purchasing just the restaurant business (not the real estate), SBA 7(a) is more appropriate.
If your restaurant is a franchise concept rather than an independent operation
Learn moreIf you are expanding a multi-unit restaurant operation
Learn moreIf you need working capital for operations rather than real estate acquisition
Learn morePeerSense pre-underwrites every deal before presenting it to our institutional capital sources. With 500+ lender relationships and live market rate intelligence, we match your restaurant deal with the right capital source — right now.
No upfront retainer · Fee at closing only · Complimentary initial consultation
Written by Ed Freeman, Capital Advisory — PeerSense. Updated March 2026.
Disclaimer: The information on this page is provided for educational purposes only and does not constitute financial, legal, or investment advice. Rates, terms, and availability are subject to change based on market conditions, property characteristics, and borrower qualifications. The rate ranges cited reflect approximate market pricing as of March 2026 and may not reflect current conditions at the time of reading. PeerSense is a capital advisory firm, not a lender. We do not originate, fund, or service loans. All financing is provided by third-party lenders subject to their own underwriting criteria and approval processes. Borrowers should consult with qualified financial and legal professionals before making any financing decisions.