What is the SBA loan default rate for Limited-Service Restaurants?

At 23.3%, Limited-Service Restaurants sits well above the 15.4% all industry SBA default rate (charged off as a share of resolved loans), elevated 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. 1742 lenders actively fund this industry.

Which SBA program is best for Limited-Service Restaurants?

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

NAICS 722211Accommodation & Food Services

How Much Can Limited-Service Restaurants Businesses Get in SBA Loans?

Name: Limited-Service Restaurants SBA Loan Performance Data (NAICS 722211)
Creator: PeerSense
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33,710 SBA loans totaling $7.5B have been approved for limited-service restaurants businesses (NAICS 722211). The average approved SBA loan is $223K, which is 34% below avg the $340K national average. 1742 active lenders fund this industry with a 23.3% default rate on the matured 2018-2021 loan cohort.

Elevated default risk23.3% vs 15.4% all industry avg

At 23.3%, Limited-Service Restaurants sits well above the 15.4% all industry SBA default rate (charged off as a share of resolved loans), elevated default risk relative to other SBA industries. The capital source prices this risk into rate and structure.

Quick Answer

NAICS 722211 (Limited-Service Restaurants) received 33,710 SBA loans worth $7.5B across 5+ states. Average loan $223K, average term 110 months, 23.3% default rate (resolved loan basis).1742 active SBA approved lenders fund this industry. Most limited-service restaurants loans use the SBA 7(a) program. There are approximately 771,856 U.S. establishments in this industry (Census 2022).

33,710

Total SBA Loans

$7.5B

Total Volume

$223K

Avg Loan Size

34% below avg

1,742

Active Lenders

110 mo

Avg Term

15% below avg

481,950

Jobs Supported

Is SBA Lending Growing for Limited-Service Restaurants?-68% decline

$50K

$5.0M

$2.0M

$574K

$2.2M

$2.8M

$2.2M

$2.5M

Which SBA Program Do Limited-Service Restaurants Businesses Use Most?

SBA 7(a)31,728 (94%)

SBA 5041,982 (6%)

What Is the Best SBA Loan for Limited-Service Restaurants?

SBA 7(a)

The most widely used SBA program for limited-service restaurants businesses: flexible terms, multiple use cases

Industry avg loan: $223K

Typical term: 110 months

Historical avg rate: 6.22%

1742+ lenders active in this industry

Default rate (2018 to 21 matured cohort): 23.3%

Where Are Limited-Service Restaurants SBA Loans Most Common?

4,049 loans

$1.0B

2,830 loans

$693.7M

2,015 loans

$381.7M

1,633 loans

$264.6M

1,575 loans

$278.8M

SBA Lending Activity in Limited-Service Restaurants

1,742 SBA lenders have funded 33,710 loans to limited-service restaurants businesses (NAICS 722211). 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

33,710

Active lenders

1,742

Total volume

$7.5B

Avg loan size

$223K

Browse all SBA lenders

Limited-Service Restaurants Industry Context

U.S. Establishments

771,856

U.S. Census Bureau · 2022

U.S. Employment

16,922,000

BLS · 2026

SBA Penetration

4.37%

SBA loans per establishment

Talk to PeerSense

PeerSense sources capital for limited-service restaurants 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 Limited-Service Restaurants business.

Tell us your loan amount and use of funds. PeerSense sources capital. It is not the lender.

SBA 7(a) / 504: The desk 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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Referral fee realized at closing · Or call (317) 452 6990

How Does SBA Lending Work for Limited-Service Restaurants Businesses?

Across all SBA loan programs, 33,710 loans have been approved for businesses classified under NAICS 722211 (Limited-Service Restaurants), representing $7.5B in total capital deployed. The average approved loan of $223K is 34% below avg the national SBA average of $340K, with typical repayment terms of 110 months.

SBA lending for limited-service restaurants has contracted approximately 68% over recent fiscal years. This shift may reflect changing market conditions, industry consolidation, or tightening credit standards in this sector. However, 1742 lenders remain active, maintaining competitive options for qualified borrowers.

The industry sees a balanced mix of SBA programs, with 6% 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 limited-service restaurants file. The capital source sets the terms. The desk fee is paid at closing, never upfront.

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Frequently Asked Questions: Limited-Service Restaurants SBA Loans

What is the average SBA loan size for limited-service restaurants businesses?

Based on 33,710 approved SBA loans, the average loan size for limited-service restaurants (NAICS 722211) is $223K. This compares to the national SBA average of $340K across all industries.

Which SBA loan program is best for a limited-service restaurants business?

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

How many lenders fund SBA loans for limited-service restaurants?

1742 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 limited-service restaurants file.

What states have the most SBA lending for limited-service restaurants?

CA leads with 4,049 SBA loans and $1.0B in total volume for limited-service restaurants businesses. TX, NY, PA also show strong lending activity in this sector.

How does PeerSense help limited-service restaurants businesses get SBA loans?

PeerSense is a capital advisory firm. Talk to PeerSense about a limited-service restaurants 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

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

Snack and Nonalcoholic Beverage Bars

9,060 loans · N/A

Avg: $318K

Data aggregated from SBA loan records (1992 to 2025). Limited-Service Restaurants defined by NAICS code 722211. Not financial advice. PeerSense sources capital through a curated network of commercial lenders and capital sources. Consult a lending professional before making financial decisions.