What is the SBA loan default rate for Food Service Contractors?

At 13.7%, Food Service Contractors sits below the 15.4% all industry SBA default rate (charged off as a share of resolved loans), moderate default risk relative to other SBA industries. The rate is measured on the resolved loans (paid in full or charged off), loans that have reached a final outcome. 450 lenders actively fund this industry.

Which SBA program is best for Food Service Contractors?

The SBA 7(a) program is the most commonly used for Food Service Contractors businesses, accounting for the majority of approved loans. The SBA 504 program is popular for larger real estate and equipment purchases.

NAICS 722310Accommodation & Food ServicesLending Growing

How Much Can Food Service Contractors Businesses Get in SBA Loans?

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2,316 SBA loans totaling $665.6M have been approved for food service contractors businesses (NAICS 722310). The average approved SBA loan is $287K, which is 16% below avg the $340K national average. 450 active lenders fund this industry with a 13.7% default rate on the matured 2018-2021 loan cohort.

Moderate default risk13.7% vs 15.4% all industry avg

At 13.7%, Food Service Contractors sits below the 15.4% all industry SBA default rate (charged off as a share of resolved loans), moderate default risk relative to other SBA industries. The capital source prices this risk into rate and structure.

Quick Answer

NAICS 722310 (Food Service Contractors) received 2,316 SBA loans worth $665.6M across 5+ states. Average loan $287K, average term 118 months, 13.7% default rate (resolved loan basis).450 active SBA approved lenders fund this industry. Most food service contractors loans use the SBA 7(a) program.

2,316

Total SBA Loans

$665.6M

Total Volume

$287K

Avg Loan Size

16% below avg

450

Active Lenders

118 mo

Avg Term

9% below avg

33,616

Jobs Supported

Is SBA Lending Growing for Food Service Contractors?+28% growth

108

109

$28.7M

$28.6M

$28.0M

$25.2M

$23.5M

$40.2M

$47.4M

$32.8M

$59.1M

$46.0M

Which SBA Program Do Food Service Contractors Businesses Use Most?

SBA 7(a)2,102 (91%)

SBA 504214 (9%)

What Is the Best SBA Loan for Food Service Contractors?

SBA 7(a)

The most widely used SBA program for food service contractors businesses: flexible terms, multiple use cases

Industry avg loan: $287K

Typical term: 118 months

Historical avg rate: 7.07%

450+ lenders active in this industry

Default rate (2018 to 21 matured cohort): 13.7%

Where Are Food Service Contractors SBA Loans Most Common?

303 loans

$45.6M

271 loans

$129.6M

161 loans

$38.8M

139 loans

$35.4M

126 loans

$24.1M

SBA Lending Activity in Food Service Contractors

450 SBA lenders have funded 2,316 loans to food service contractors businesses (NAICS 722310). Which lender approves your deal depends on your location, loan size, credit profile and time in business, not on who funded someone else. PeerSense makes the introduction.

Loans funded

2,316

Active lenders

450

Total volume

$665.6M

Avg loan size

$287K

Browse all SBA lenders

Talk to PeerSense

PeerSense sources capital for food service contractors businesses. The capital source sets the terms. No upfront fee. Talk to PeerSense. Referral fee at closing.

Retainers

10%

Down with SBA 7(a)

25yr

Terms Available

Talk to PeerSense (317) 452-6990

Talk to PeerSense about financing a Food Service Contractors business.

Tell us your loan amount and use of funds. PeerSense sources capital. The capital source sets the terms.

SBA 7(a) / 504: PeerSense will reach out. No obligation.

How big is your deal?

Where are you in the deal?

Equity or down payment ready

Credit score

Timeline to close

SBA already on the books?

What best describes your company

Liquid funds available outside this deal

Where is the property or business

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How Does SBA Lending Work for Food Service Contractors Businesses?

Across all SBA loan programs, 2,316 loans have been approved for businesses classified under NAICS 722310 (Food Service Contractors), representing $665.6M in total capital deployed. The average approved loan of $287K is 16% below avg the national SBA average of $340K, with typical repayment terms of 118 months.

SBA lending for food service contractors is accelerating. Loan volume has grown approximately 28% over recent fiscal years. This upward trajectory suggests expanding access to capital and growing lender confidence in this sector. Peak activity occurred in FY2025.

The industry sees a balanced mix of SBA programs, with 9% of loans using the 504 program for fixed asset acquisition and the majority using 7(a) for its flexibility across working capital, equipment, and business acquisition uses. SBA 7(a) loans offer up to $5M with terms up to 25 years for real estate.

Talk to PeerSense about a food service contractors file. The capital source sets the terms. The desk fee is paid at closing, never upfront.

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Frequently Asked Questions: Food Service Contractors SBA Loans

What is the average SBA loan size for food service contractors businesses?

Based on 2,316 approved SBA loans, the average loan size for food service contractors (NAICS 722310) is $287K. This compares to the national SBA average of $340K across all industries.

Which SBA loan program is best for a food service contractors business?

SBA 7(a) is the most commonly used SBA program for food service contractors businesses. The most widely used SBA program for food service contractors businesses: flexible terms, multiple use cases. PeerSense can analyze your specific deal to determine the optimal program.

How many lenders fund SBA loans for food service contractors?

450 different SBA approved lenders have funded loans in this industry. Not all lenders are equally active in every industry. Talk to PeerSense. The capital source sets the terms for a food service contractors file.

What states have the most SBA lending for food service contractors?

OH leads with 303 SBA loans and $45.6M in total volume for food service contractors businesses. CA, NY, TX also show strong lending activity in this sector.

How does PeerSense help food service contractors businesses get SBA loans?

PeerSense is a capital advisory firm. Talk to PeerSense about a food service contractors file. The capital source sets the terms. No upfront fee. The desk is paid at closing.

Related Accommodation & Food Services Industries

Full-Service Restaurants

49,950 loans · N/A

Avg: $266K

Full-Service Restaurants

41,841 loans · N/A

Avg: $483K

Limited-Service Restaurants

33,710 loans · N/A

Avg: $223K

Hotels (except Casino Hotels) and Motels

30,612 loans · N/A

Avg: $1.6M

Limited-Service Restaurants

28,029 loans · N/A

Avg: $431K

Drinking Places (Alcoholic Beverages)

13,001 loans · N/A

Avg: $310K

Data aggregated from SBA loan records (1992 to 2025). Food Service Contractors defined by NAICS code 722310. Not financial advice. PeerSense sources capital through a curated network of commercial lenders and capital sources. Consult a lending professional before making financial decisions.