Restaurants face unique financing challenges — seasonal cash flow, expensive equipment, and real estate costs. We break down the best loan options including SBA 7(a), SBA 504, and traditional bank loans from Bank of America and Chase, with a comparison table and guidance on choosing the right type for your needs.
Running a restaurant means navigating thin margins, seasonal swings, and constant equipment costs. A new oven, a payroll crunch during slow months, or a lease renovation can all demand capital fast. The right loan depends on what you need it for — and how quickly you need it.
Here's a clear look at the best business loans for restaurants in 2025, what they're good for, and how to choose.
The SBA 7(a) is the most versatile small-business loan program from the U.S. Small Business Administration. It can be used for working capital, equipment, furniture, leasehold improvements, and even debt refinancing.2 Terms go up to 25 years for real estate and 10 years for equipment, with rates typically lower than private lenders.
Best for: Established restaurants with solid financials and time to wait — the application process takes several weeks.
Learn more about SBA 7(a) loans
If you're buying or renovating the building your restaurant sits in, the SBA 504 loan is the gold standard. It's designed specifically for fixed assets like real estate and heavy equipment, offering long terms (20–25 years) and low down payments (as low as 10%).2
Best for: Restaurant owners purchasing their space or doing major construction.
Learn more about SBA 504 loans
Bank of America offers term loans and lines of credit for small businesses, with competitive rates for existing banking customers. If you already run your business checking or merchant services through BofA, you may qualify for relationship pricing and faster approvals.1
Best for: Established restaurants with a BofA banking relationship.
Learn more about Bank of America business loans
Chase provides high-capacity commercial loans suited for larger restaurant groups or multi-unit operators. Their commercial banking division can handle seven-figure financing for expansion, equipment fleets, and real estate.1
Best for: Growing restaurant groups needing substantial capital.
Learn more about Chase commercial banking
| Dimension | SBA Loans | Traditional Bank Loans | Private / Online Lenders |
|---|---|---|---|
| Speed | 4–12 weeks | 1–4 weeks | 1–3 days |
| Rate | Low (prime + 2–6%) | Moderate (prime + 3–8%) | High (10–30%+) |
| Terms | Up to 25 years | 1–10 years | 3–24 months |
| Collateral | Usually required | Often required | Often unsecured |
| Best for | Long-term growth, real estate | Established businesses | Fast cash, short-term needs |
Match the loan type to what you actually need:
We link to lenders we've researched. Some of these links are affiliate links — if you apply through them, we may earn a small commission at no extra cost to you. We only recommend products we believe are genuinely useful for restaurant owners.
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