Best Restaurant Loans for Small Businesses in 2026
Restaurant financing from banks, SBA and online lenders can be used for a range of purposes, from small supply purchases to large investments in equipment.
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| Lender | NerdWallet rating | Best For | Max loan amount | Min. time in business | Min. interest rate | Term length | Learn more |
|---|---|---|---|---|---|---|---|
 with Fundera by NerdWallet | Read expert review | SBA loans | $5,000,000 | 24 months | 9.75% | Up to 25 years | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | bank term loan | $100,000 | 24 months | 6.5% | 12 months to 5 years | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | bank business line of credit | $150,000 | 6 months | 8.5% | Undisclosed | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | no-fee restaurant loans | $200,000 | 12 months | 14% | 6 to 12 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | high-revenue restaurants | $10,000,000 | 12 months | Undisclosed | Up to 24 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | building business credit | $400,000 | 12 months | 35% | 18 to 24 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | low-revenue restaurants | $100,000 | 6 months | 39% | 12 to 24 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | bad-credit borrowers | $1,500,000 | 6 months | Undisclosed | 4 to 24 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | startup restaurants | $250,000 | 3 months | 36% | 3 months to 2 years and 2 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | equipment financing | $150,000 | 6 months | Undisclosed | 24 months to 5 years | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | large restaurant loans | $750,000 | 24 months | 35% | 6 to 12 months | with Fundera by NerdWallet |
restaurant business loans: More details
U.S. Small Business Administration: Best for SBA loans
SBA 7(a) loans offer long terms, competitive rates and high loan maximums, which are ideal for restaurant owners who can qualify. So far in fiscal year (FY) 2026, over $700 million in 7(a) funding has gone to the food services industry.
Low interest rate
SBA 7(a) loan
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Max loan amount
$5,000,000
Min. credit score
650
Term length
Up to 25 years
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
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Bank of America: Best for bank term loan
Bank of America’s unsecured business loan is among NerdWallet’s top-rated business bank loans. As is standard among banks, you’ll need great credentials to qualify. But if you have the time in business, high credit score and strong finances, go for it. You’ll find benefit in the competitive interest rates, long terms (compared with the online lenders on this list) and monthly payment schedules.
Bank of America Business Advantage Unsecured Term Loan
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Max loan amount
$100,000
Min. credit score
700
Term length
12 months to 5 years
Pros
- Bank loan with competitive interest rates.
- No collateral required.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
Cons
- Can be slow to fund.
- Prepayment fees may apply to early repayments.
- Must be an existing Bank of America customer to apply online.
- Charges an origination fee.
Pros
- Bank loan with competitive interest rates.
- No collateral required.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
Cons
- Can be slow to fund.
- Prepayment fees may apply to early repayments.
- Must be an existing Bank of America customer to apply online.
- Charges an origination fee.
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Wells Fargo: Best for bank business line of credit
This bank loan is unusual in its low time-in-business requirement of only six months (most banks ask for at least 24 months). That means that newer business owners with good credit may qualify. It’s an unsecured line of credit, so you won’t need to put up collateral to secure the loan. Interest rates are tied to the prime rate, so you can trust they’ll stay competitive. Wells Fargo won’t charge you a draw fee on this line of credit, but you will need to pay an annual fee of 0.25% of your total line amount.
Wells Fargo BusinessLine® Line of Credit
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Max loan amount
$150,000
Min. credit score
680
Term length
Undisclosed
Pros
- Bank line of credit with competitive interest rates.
- Revolving credit line with no scheduled annual review.
- No collateral required; no prepayment penalties.
Cons
- Must be an established business with strong credit to qualify.
- May take longer to fund than online lenders.
- Annual fee and inactivity fees may apply.
Pros
- Bank line of credit with competitive interest rates.
- Revolving credit line with no scheduled annual review.
- No collateral required; no prepayment penalties.
Cons
- Must be an established business with strong credit to qualify.
- May take longer to fund than online lenders.
- Annual fee and inactivity fees may apply.
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Bluevine: Best for no-fee restaurant loans
The 26-week term business line of credit from Bluevine is strong in many categories of our rating system, including transparency, underwriting and customer service. But it’s especially notable for the fact that it charges neither an origination fee nor a draw fee. Plus it comes without extraneous fees for things like paying the line off early, monthly maintenance or termination.
May fund quickly
Bluevine - Line of credit
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Max loan amount
$200,000
Min. credit score
625
Term length
6 to 12 months
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
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altbanq: Best for high-revenue restaurants
The term loan from Altbanq comes in amounts up to $10 million and with reasonable interest rates, compared with other online lenders. This lender also gives you flexibility on your repayment schedules (choose weekly, biweekly or monthly payments) and offers same-day funding. Plus, you can get discounts for paying your loan off early. The catch? A steep minimum annual revenue requirement of $800,000 to qualify.
altbanq - Online term loan
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Max loan amount
$10,000,000
Min. credit score
650
Term length
Up to 24 months
Pros
- Same-day funding available.
- Prepayment discounts available.
- Accessible to high-revenue startups.
- Accessible to startups.
Cons
- Higher credit score requirement than some online lenders.
- Repayment terms max out at 24 months.
- Minimum revenue requirement much higher than other online lenders.
Pros
- Same-day funding available.
- Prepayment discounts available.
- Accessible to high-revenue startups.
- Accessible to startups.
Cons
- Higher credit score requirement than some online lenders.
- Repayment terms max out at 24 months.
- Minimum revenue requirement much higher than other online lenders.
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OnDeck: Best for building business credit
OnDeck can help restaurant owners build business credit with online term loans up to 24 months. The lender’s qualification requirements are competitive with others in the online lending space. OnDeck’s interest rates are on the higher end, though, and the lender does charge an origination fee plus other fees in certain circumstances. Due to the short terms and frequent, fixed payments, this is a good option for high-earning restaurants that are looking to build credit on smaller purchases.
May fund quickly
OnDeck - Online term loan
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Max loan amount
$400,000
Min. credit score
625
Term length
18 to 24 months
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
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Headway Capital: Best for low-revenue restaurants
Headway Capital is one of only a few lenders, both traditional and alternative, that we evaluate that has a minimum annual revenue requirement under $100,000. Newer, lower-revenue businesses may qualify for Headway’s line of credit, which has terms up to 24 months and can be paid on a weekly or monthly basis. This lender also offers fast funding, with many business owners receiving their loan by the next business day after approval.
Headway Capital - Line of credit
with Fundera by NerdWallet
Max loan amount
$100,000
Min. credit score
625
Term length
12 to 24 months
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- Funds available by next business day after approval.
Cons
- Most borrowers are subject to a 2% draw fee.
- Not available in all U.S. states.
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- Funds available by next business day after approval.
Cons
- Most borrowers are subject to a 2% draw fee.
- Not available in all U.S. states.
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Fora Financial: Best for bad-credit borrowers
For restaurant owners who are struggling to qualify for funding because of bad credit, Fora Financial has a minimum credit score requirement of 570. It doesn’t have any restrictions on uses, which may be helpful for purchases like safety equipment or food processors. But you will need a healthy annual revenue of at least $240,000 to qualify.
Fora Financial - Online term loan
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Max loan amount
$1,500,000
Min. credit score
570
Term length
4 to 24 months
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 24 months.
- Charges an origination fee.
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 24 months.
- Charges an origination fee.
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Fundbox: Best for startup restaurants
The line of credit from Fundbox is all-around a great option for new restaurants. You may qualify with only 3 months in operation and only $30,000 in annual revenue. Plus you only need a personal credit score of 600 to qualify. You can get a decent amount from Fundbox to fund your restaurant needs: up to $250,000. But interest rates will likely be high and you’ll repay the loan weekly, so be sure first that your cash flow can handle that reality.
May fund quickly
Fundbox - Line of credit
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Max loan amount
$250,000
Min. credit score
600
Term length
3 months to 2 years and 2 months
Pros
- Financing available within two business days after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Weekly repayments required.
Pros
- Financing available within two business days after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Weekly repayments required.
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National Funding: Best for equipment financing
Restaurant owners specifically looking to purchase or lease equipment can consider an equipment loan from National Funding. Terms reach up to 60 months for loans up to $150,000. Repay the loan monthly and receive discounts for early payoff. Plus, this lender can get you the funds as fast as 24 hours after approval. Credit score and time in business minimums are low, but you will need at least $250,000 in annual revenue to be eligible.
National Funding - Equipment financing
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Max loan amount
$150,000
Min. credit score
600
Term length
24 months to 5 years
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Can't be used to built business credit.
- Charges an origination fee.s a factor rate that makes it more difficult to compare costs with other lenders.
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Can't be used to built business credit.
- Charges an origination fee.s a factor rate that makes it more difficult to compare costs with other lenders.
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Backd: Best for large restaurant loans
If you need a large restaurant loan and you can’t qualify for an SBA or bank loan, then Backd may be able to help. This online lender offers one of the largest lines of credit at $750,000. The APR range is middling, and the only other fee the lender charges is a draw fee. Terms are short at six to 12 months, and payments are made weekly, so give that careful consideration before proceeding. You can qualify with only fair credit and at least a couple of years in business.
Backd - Line of credit
with Fundera by NerdWallet
Max loan amount
$750,000
Min. credit score
650
Term length
6 to 12 months
Pros
- Fast access to funds.
- Simple application with minimal documentation required.
- Large maximum funding amounts.
- Accessible to startups and borrowers with bad credit.
Cons
- Requires weekly repayment.
- Charges a draw fee.
- Interest rates can be high compared with traditional lenders.
Pros
- Fast access to funds.
- Simple application with minimal documentation required.
- Large maximum funding amounts.
- Accessible to startups and borrowers with bad credit.
Cons
- Requires weekly repayment.
- Charges a draw fee.
- Interest rates can be high compared with traditional lenders.
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What is a restaurant business loan?
A restaurant business loan can be used to make restaurant-related purchases, such as ovens, cookware or serving ware, tables and more. Generally, your financing options will depend on the type of restaurant you open, what you’re serving and who your target audience is.
The interest rate, loan term, fees and repayment schedule will vary based on the lender you select and factors such as your time in business, credit score and business revenue.
What are restaurant loans used for?
Restaurant business loans can be used for a range of purposes, including:
- Opening a new location.
- Remodeling, making repairs or expanding an existing location.
- Covering everyday expenses, such as rent, utilities and software subscriptions.
- Purchasing or upgrading equipment.
- Buying inventory and supplies.
- Paying your employees and/or hiring new workers.
- Managing cash flow gaps during seasonal slows.
- Other working capital needs.
Types of restaurant business loans
Restaurant owners can use many different types of business loans to get access to the capital they need. The best choice for you will vary based on why you need financing and your business’s qualifications, among other factors.
Here are some of the most common types of restaurant loans.
| Loan type | Summary |
| Term loans | Business term loans offer a lump sum of capital up front, and are repaid in fixed payments, including interest, over a set period of time. They may be one of the most affordable types of restaurant financing depending on the rates and terms you qualify for. Term loans are available from a variety of lenders, including banks, online lenders and other alternative lenders. The most popular type of SBA loan, the SBA 7(a) loan, is a term loan that can be used for a variety of restaurant purposes. |
| Business lines of credit | Business lines of credit offer a revolving source of capital that you can draw from as needed throughout the life of the loan. They can be a good option for frequent inventory needs or cash flow gaps — or they can serve as an emergency fund. Lines of credit are available from both banks and online lenders. Online lenders will have more flexible qualifications, but higher rates than traditional lenders. |
| Restaurant equipment financing | Restaurant equipment financing is a common type of asset-based financing, where the assets you are purchasing are used as collateral for the loan. Equipment financing can be used to purchase large items like ovens, dishwashers or even vehicles for your restaurant. Because the assets purchased often serve as collateral, asset-based financing can be easier to qualify for than traditional business loans. |
| Inventory financing | Similar to restaurant equipment financing, inventory financing is a type of asset-based financing that uses the products and supplies being purchased as collateral on the loan. Inventory financing is a good option to cover short-term gaps in cash flow, or to purchase more inventory to meet increased customer demand. |
How to compare restaurant business loans
The options for financing your restaurant can be numerous and overwhelming. Consider the following factors when comparing loans to help you make your decision.
- Loan repayment terms. If you’re purchasing a large piece of equipment, or making expansions to your restaurant, you may want longer repayment terms for your restaurant loan. On the flip side, if you have the daily or weekly cash flow to pay off the loan quickly, you may be able to save on interest in the long run.
- Purpose of funding. The purpose of your loan can direct you to a specific type of financing, and rule out certain lenders. If you need to cover recurring cash flow gaps for inventory, a line of credit may be your best fit. If you are looking to make a large long-term purchase like a vehicle though, you may opt for a term loan.
- Timing of funding. Certain lenders are able to fund faster than others. When comparing lenders, make sure you understand your ideal funding timeline, and go with a lender that can match it.
- Lender reputation. It’s always a good idea to check the reputation of the lender you’re considering before you commit to anything. You can look at websites like Trustpilot or the Better Business Bureau (BBB) to see feedback from other borrowers. As a restaurant owner, it can also be helpful to ask if your lender has worked with a lot of restaurants before. There may be industry nuances that affect the timing of funding or understanding of loan purposes.
How to get a restaurant loan
To get a loan for your restaurant, you can follow these steps.
1. Decide which type of funding you need
You’ll want to determine which type of financing will best meet your business’s needs, for example: what you’re using the funds for, how fast you need the money, how much your restaurant can afford and even your stage of business.
If you’re looking to buy, say, a new refrigerator, an equipment loan may be the right option. If you’re seeking working capital for ongoing needs or gaps in cash flow, on the other hand, a business line of credit may be best.
2. Evaluate your business’s qualifications
Most small-business lenders will use your time in business, annual revenue and credit score to evaluate your eligibility. They may also consider your cash flow, sales projections, debit and credit cards sales and available collateral.
You’ll want to review your financial statements and credit reports ahead of time so you know where you stand with potential lenders.
3. Compare and research lenders
Once you have an understanding of your funding needs and business qualifications, you can narrow down your lender search accordingly. If you have fair credit and need fast working capital, a line of credit from an online lender such as Bluevine might be a good option.
You’ll want to research and compare multiple lenders to find the right fit for your restaurant. Using a business loan calculator can be helpful for comparing monthly payments and total loan cost.
4. Gather documentation and submit your application
Restaurant loan application requirements vary based on the lender and type of financing. In general, you’ll need to provide some if not all of the following:
- Basic information about you and your business.
- Restaurant business plan.
- Business and personal bank statements.
- Business and personal tax returns.
- Business financial statements.
- Collateral information.
If you’re applying for an equipment or inventory loan, you’ll likely need to provide details and pricing information about those assets.
Funding times will also vary based on financing type and lender. Bank and SBA loans can take anywhere from a few weeks to a few months to fund, whereas online lenders may be able to offer same-day loans.
How to get a business loan to open a restaurant
Getting a startup loan from a traditional lender can be a challenge for an entrepreneur who wants to open a restaurant. Banks often require multiple years in business and excellent credit.
However, microloans, including SBA microloans — with loan amounts generally up to $50,000 — can be easier to qualify for than a bank loan and may be an option to help fund a new restaurant. Also, using an SBA 7(a) loan to buy an existing business could be an alternative if your plan is to take over an existing restaurant.
Other forms of startup funding you may want to consider include alternative lenders, investors, crowdfunding and business grants.
When you’re planning for funding, consider factors like the following that can impact how much financing you need:
- Inventory expenses.
- Labor needs and expenses.
- Equipment needs.
- Licensing fees.
- Mortgage or rent expenses.
- Marketing and technology costs.
Last updated on January 5, 2026
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If the lender approves you, you’ll sign closing documents in order to receive funds. Some lenders can approve and fund loans within one business day.
Frequently Asked Questions
It can be hard to get a restaurant loan because many lenders perceive the industry to be risky. To increase your chances of getting a restaurant loan, you should have good credit and strong finances.
Some lenders only require a minimum credit score of 500 for restaurant loans. However, to qualify for the most competitive restaurant financing, you’ll typically need a credit score of 650 or higher.
Some banks, like Bank of America and Wells Fargo, offer business loans for restaurants. However, these loans are often designed for larger enterprises and require strong financials to qualify. In general, banks can be hesitant to lend to restaurants, as they perceive the food and beverage industry to be risky.
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including:
- Transparency of rates and terms
- Flexible payment options
- Fast funding times
- Accessible customer service
- Reporting of payments to business credit bureaus
- Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.
