Can I stack SBA loans for multiple Sourdough & Co locations?

Yes. Multi-unit candidates can obtain separate SBA 7(a) loans for each location. The total SBA exposure per borrower is now capped at $10M (combined 7(a) + 504, effective July 4, 2026), with each individual 7(a) loan still capped at $5M. Either ceiling supports multiple locations at the $199K-$450K build-out range. Lenders who specialize in franchise SBA are experienced with multi-unit structures.

How much do I need for a down payment on a Sourdough & Co franchise?

SBA 7(a) requires 10-20% injection depending on the lender and your credit profile. For a $199K build-out with landlord improvements, that is approximately $20K-$40K out of pocket. For a $450K high-cost market build-out, budget $45K-$90K.

Does Sourdough & Co require owner-operators?

The 3-unit model is specifically designed so a General Manager can handle daily operations, meaning the owner does not need to be in-store every day. However, owner involvement is expected during the initial ramp-up of each location.

What makes Sourdough & Co operationally simpler than other QSR franchises?

No fryers, no grills, and low employee count. The primary skilled position is a meat cutter. This eliminates the biggest sources of equipment failure, employee injury, and operational variability found in traditional QSR kitchens. It also reduces build-out costs and ongoing maintenance significantly.

Published: March 31, 2026·Last updated: May 16, 2026·By Ed Freeman, Capital Advisor. PeerSense

What is the best financing for franchise, fast casual / qsr at 80-90% LTV?

Sourdough & Co franchise locations qualify for SBA 7(a) financing with 10-20% down payment. The brand carries one of the lowest SBA default rates in QSR/fast casual (under 2%), making it highly lender-friendly. Multi-unit candidates can stack SBA loans across multiple locations. Build-out costs range from $199K with landlord improvements to $450K+ in high-cost markets.

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder

Prime: 6.75% 10-Yr Treasury: 4.25% Est. SBA 7(a) Range: Prime + 2.25% - 2.75%as of Mar 19, 2026

Franchise, Fast Casual / QSR

SBA Franchise Financing for Sourdough & Co

Sourdough & Co franchise financing via SBA 7(a). Under 2% default rate, $199K-$450K build-out, multi-unit SBA stacking available. One of the lowest-risk QSR franchise loans available.

Minimum 30-35% equity required. Multi-unit franchise operators or experienced managers with management/operations background, 680+ credit score, 10-20% injection capital, and willingness to commit to 3+ locations for optimal economics.

Discuss Your Franchise, Fast Casual / QSR Deal Call (317) 452-6990

KEY TERMS

Deal Parameters at a Glance

LTV Target

80-90%

Est. Rate Range

Prime + 2.25% - 2.75%

Term

10-25 years

Recourse

Full recourse (SBA personal guarantee)

DSCR

1.15x historical/projected and 1:1 global (Standard 7(a), SOP 50 10 8)

Closing Speed

30-60 days

Min Loan Size

$199K

Loan Products

SBA 7(a), ROBS

Indicative only, as of August 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense does not lend and does not set pricing. What these terms mean.

FIT ASSESSMENT

When Is This the Right Fit?

SBA 7(a) financing for Sourdough & Co is the right structure when you are opening new locations or acquiring existing units. The brand's under 2% default rate makes it one of the easiest QSR franchises to finance through SBA. Multi-unit candidates should plan for 3 locations minimum, the model is designed so a GM can run daily operations profitably at 3 units. If you have retirement assets, ROBS (Rollover for Business Startups) can reduce or eliminate debt for the first location. For candidates in high-cost markets ($450K+ build-out), SBA 7(a) with 10% down keeps out-of-pocket capital under $50K.

Want the full program overview, current rate sheet, and underwriting matrix? See the SBA Loans guide →

ADVANTAGES

Key Benefits

Under 2% SBA default rate, one of the lowest in QSR/fast casual

Build-out as low as $199K with landlord improvements (vs $500K-$1M+ for typical QSR)

Multi-unit SBA stacking allows financing for 3+ locations

Simplified kitchen (no fryers, no grills) reduces equipment and maintenance costs

FDD includes an Item 19 financial performance representation to review with your accountant

Only 2 closures out of 80+ locations system-wide

ALTERNATIVES

Strategic Alternatives

Paint EZ Franchise Financing

If you prefer a home services franchise with even lower investment ($80K-$141K)

Learn more

SBA Loans for Business Acquisitions

If you are acquiring an existing franchise location rather than building new

Learn more

Franchise vs Independent Business Acquisition

If you are comparing franchise ownership to buying an independent business

Learn more

Frequently Asked Questions

Under 2%, which is one of the lowest in the entire QSR/fast casual category. For comparison, many well-known sandwich brands carry default rates of 5-15%. This low default rate makes Sourdough & Co one of the most lender-friendly franchise concepts available.

See Related Rates by Program

PeerSense covers the full commercial capital stack. Indicative levels that lenders in our network have been pricing across these programs, as of August 1, 2026.

CMBS Conduit

5.60–7.10%

10-yr non-recourse fixed, $5M–$500M+, fully assumable

See current rates

Bridge Loans

9.00–14.00%

12–36 mo transitional, SOFR + 470-970 bps, 65-75% LTV

See current rates

DSCR Investor

5.95–8.50%

30-yr fixed rental, qualifies on property cash flow

See current rates

Equipment Financing

5.50–12.00%

Loan, lease, SBA 504, vendor, captive. Section 179 eligible

See current rates

Hotel Financing

5.85–11.75%

CMBS + SBA 504 + bridge + PIP across all flags

See current rates

Private Credit

7.80–18.00%

Non-bank flexibility, unitranche, recap, transitional

See current rates

Invoice Factoring + ABL

0.5–3.5% / 30d

B2B receivables, trucking / staffing / construction / govt

See current rates

No-Doc CRE

7.50–11.50%

Limited-doc commercial, asset-based underwriting

See current rates

Foreign National

7.50–11.00%

Non-US borrower CRE + bridge, no SSN required

See current rates

Connect with PeerSense, Direct Capital Advisory

PeerSense pre-underwrites every deal before presenting it to our institutional capital sources. With a curated network of lender relationships and live market rate intelligence, we match your franchise, fast casual / qsr deal with the right capital source, right now.

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Fee at closing only · Complimentary initial consultation

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. 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.