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

At 10.1%, Limited-Service Restaurants sits well below the 15.4% all industry SBA default rate (charged off as a share of resolved loans), low 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. 1560 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 722513Accommodation & Food ServicesLending Growing

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

Name: Limited-Service Restaurants SBA Loan Performance Data (NAICS 722513)
Creator: PeerSense
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28,029 SBA loans totaling $12.1B have been approved for limited-service restaurants businesses (NAICS 722513). The average approved SBA loan is $431K, which is 27% above avg the $340K national average. 1560 active lenders fund this industry with a 10.1% default rate on the matured 2018-2021 loan cohort.

Low default risk10.1% vs 15.4% all industry avg

At 10.1%, Limited-Service Restaurants sits well below the 15.4% all industry SBA default rate (charged off as a share of resolved loans), low default risk relative to other SBA industries. The capital source prices this risk into rate and structure.

Quick Answer

NAICS 722513 (Limited-Service Restaurants) received 28,029 SBA loans worth $12.1B across 5+ states. Average loan $431K, average term 138 months, 10.1% default rate (resolved loan basis).1560 active SBA approved lenders fund this industry. Most limited-service restaurants loans use the SBA 7(a) program. There are approximately 265,179 U.S. establishments in this industry (Census 2022).

28,029

Total SBA Loans

$12.1B

Total Volume

$431K

Avg Loan Size

27% above avg

1,560

Active Lenders

138 mo

Avg Term

6% above avg

529,619

Jobs Supported

Is SBA Lending Growing for Limited-Service Restaurants?+29% growth

2,462

2,290

2,382

2,021

1,490

2,060

1,891

2,118

2,379

2,735

$891.8M

$871.0M

$927.5M

$813.8M

$688.0M

$1.2B

$990.0M

$975.5M

$1.1B

$1.4B

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

SBA 7(a)25,770 (92%)

SBA 5042,259 (8%)

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: $431K

Typical term: 138 months

Historical avg rate: 7.37%

1560+ lenders active in this industry

Default rate (2018 to 21 matured cohort): 10.1%

Where Are Limited-Service Restaurants SBA Loans Most Common?

3,568 loans

$1.6B

2,414 loans

$1.2B

1,646 loans

$935.8M

1,452 loans

$538.0M

1,232 loans

$386.5M

SBA Lending Activity in Limited-Service Restaurants

1,560 SBA lenders have funded 28,029 loans to limited-service restaurants businesses (NAICS 722513). 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

28,029

Active lenders

1,560

Total volume

$12.1B

Avg loan size

$431K

Browse all SBA lenders

Limited-Service Restaurants Industry Context

U.S. Establishments

265,179

U.S. Census Bureau · 2022

U.S. Employment

16,922,000

BLS · 2026

SBA Penetration

10.57%

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, 28,029 loans have been approved for businesses classified under NAICS 722513 (Limited-Service Restaurants), representing $12.1B in total capital deployed. The average approved loan of $431K is 27% above avg the national SBA average of $340K, with typical repayment terms of 138 months.

SBA lending for limited-service restaurants is accelerating. Loan volume has grown approximately 29% 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 8% 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 28,029 approved SBA loans, the average loan size for limited-service restaurants (NAICS 722513) is $431K. 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?

1560 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 3,568 SBA loans and $1.6B in total volume for limited-service restaurants businesses. TX, FL, NY 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

Limited-Service Restaurants

33,710 loans · N/A

Avg: $223K

Hotels (except Casino Hotels) and Motels

30,612 loans · N/A

Avg: $1.6M

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 722513. Not financial advice. PeerSense sources capital through a curated network of commercial lenders and capital sources. Consult a lending professional before making financial decisions.