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SBA Express Loans for Restaurants
Learn how your restaurant could take advantage of an SBA Express loan to finance working capital, equipment purchases, and much more.
With annual revenues of approximately $800 billion per year and around 15 million workers, the restaurant industry is one of the most important sectors of the U.S. economy. Since the industry is incredibly competitive and experiences a lot of seasonal fluctuations, it’s incredibly important for restaurants to have a stable and affordable source of financing.
However, many cases, restaurants can’t wait months to get the funding they need. That’s why the SBA Express loan, which can be approved and funded in as little as 30 days, can be a fantastic option for many restaurant owners.
How Restaurants Can Use SBA Express Loans
New and existing restaurants alike can benefit from SBA Express financing. SBA Express loans are incredibly flexible, and can be used to finance working capital, equipment, and owner-occupied commercial real estate.
Restaurant owners commonly use SBA Express loans to:
Fund working capital: Whether it’s paying employee salaries during the slow season, stocking up on expensive supplies, or funding a new marketing push, SBA Express loans can provide the working capital restaurants need to thrive.
Opening a new location: SBA Express loans can be used to remodel an existing structure to fit your restaurant, by allowing you to install proper plumbing and electrical outlets, purchase furniture and, and install other interior design elements.
Purchasing equipment: Restaurant equipment can be incredibly expensive, with professional-grade ovens, stoves and burners sometimes costing tens of thousands of dollars. Fortunately, these items can all be financed with an SBA Express loan.
Building a new restaurant: While building a new restaurant from the ground up may take more than the $500,000 maximum that can be obtained with an SBA Express loan, it can be combined with other funds in order to make your new restaurant a reality.
Business debt refinancing: If you have SBA-eligible business debt that’s currently being offered to your business on unreasonable terms, you may be able to refinance it with an SBA Express loan.
What are the requirements for an SBA Express loan for a restaurant?
SBA Express loans are incredibly flexible and can be used to finance working capital, equipment, and owner-occupied commercial real estate for restaurants. To qualify for an SBA Express loan, restaurants must meet the following requirements:
- Be a for-profit business
- Be located in the United States
- Have a tangible net worth of less than $15 million
- Have an average net income of less than $5 million after taxes for the past two years
- Be able to demonstrate a need for the loan proceeds
- Be able to demonstrate the ability to repay the loan
For more information, please visit https://sbaexpress.loans/sba-express-loan-requirements/.
What are the advantages of an SBA Express loan for a restaurant?
SBA Express loans are incredibly flexible and can be used to finance working capital, equipment, and owner-occupied commercial real estate. Restaurant owners commonly use SBA Express loans to:
- Fund working capital: Whether it’s paying employee salaries during the slow season, stocking up on expensive supplies, or funding a new marketing push, SBA Express loans can provide the working capital restaurants need to thrive.
- Opening a new location: SBA Express loans can be used to remodel an existing structure to fit your restaurant, by allowing you to install proper plumbing and electrical outlets, purchase furniture and, and install other interior design elements.
- Purchasing equipment: Restaurant equipment can be incredibly expensive, with professional-grade ovens, stoves and burners sometimes costing tens of thousands of dollars. Fortunately, these items can all be financed with an SBA Express loan.
- Building a new restaurant: While building a new restaurant from the ground up may take more than the $350,000 maximum that can be obtained with an SBA Express loan, it can be combined with other funds in order to make your new restaurant a reality.
- Business debt refinancing: If you have SBA-eligible business debt that’s currently being offered to your business on unreasonable terms, you may be able to refinance it with an SBA Express loan.
For more information on SBA Express loans, please visit /loan-terms and /sba-express-loan-requirements.
What are the disadvantages of an SBA Express loan for a restaurant?
The main disadvantage of an SBA Express loan for a restaurant is that the maximum loan amount is $350,000, which may not be enough for some businesses. Additionally, the loan terms are shorter than other SBA loan products, with a maximum repayment term of 7 years for working capital and 10 years for equipment and real estate. Finally, the SBA Express loan program requires a personal guarantee from the business owner, which can be a risk for some borrowers.
How long does it take to get an SBA Express loan for a restaurant?
It typically takes up to three days to get a determination on an SBA Express loan application for a restaurant. After that, funds will typically be dispersed in as few as 20 days.
For more information, please see SBA Express Loans Terms and SBA Express Loans for Restaurants.
What documents are needed to apply for an SBA Express loan for a restaurant?
In order to apply for an SBA Express loan for a restaurant, you will need to provide the following documents:
- Business tax returns for the past three years
- Personal tax returns for the past three years
- Business financial statements
- Personal financial statements
- Business license
- Business lease
- Business plan
- Personal guaranty
For more information on the documents needed to apply for an SBA Express loan, please visit https://sbaexpress.loans/sba-express-loan-requirements/.
Other Kinds of SBA Loans for Restaurants
While SBA Express loans are a great choice for many restaurants, they might not be the best loan option for every situation. For example, businesses with less-than-stellar credit who need $50,000 or less may want to check out SBA microloans, whereas businesses who want loans of up to $5 million may find that SBA 7(a) loans are the best fit for their needs.
In comparison, larger, more established restaurants who want lower-cost commercial real estate financing may find that the SBA 504 loan is the most effective way to achieve their goals.