Bowling and indoor amusement centers are very popular; and is a profitable business as well. In fact, bowling alleys in America generate about $4 billion in annual revenue. As the industry changes, however, and consumer expectations grow, you need to respond by adding new attractions, modernizing operations, and enhancing food and beverage service. To make these investments in your center’s future, PHD Financial will help you consider a range of different bowling alley financing options, like new and used equipment financing, SBA 7(a) financing, working capital loans or a business acquisition loan.

Bowling Alley Loan Terms

In general, bowling alley loan terms include:

  • Loan Size: $500,000+
  • Loan Purpose: Loan can be used for property acquisition or refinancing, but cannot be used for business only financing
  • Loan Term: 3, 5, 10 and 15-year fixed rate terms
  • Amortization: 15, 20, 25 and 30-year options
  • Leverage: 80% LTV allowance (subordinate debt allowed)
  • DSCR: 1.20 minimum DSCR
  • Credit Score Requirement: 660 minimum

SBA Loans for Bowling Alleys

Bowling alley owners generally discover that the SBA(7)a and SBA 504 loan options are some of the most effective ways to buy or refinance a bowling alley, or bowling center property. Unlike most other types of commercial financing, business owners can buy more than just real estate with SBA loans- they can also purchase equipment or fund working capital for bowling alleys. Despite that flexibility, SBA financing has stricter requirements than many other types of loans. This includes higher credit score requirements and stricter requirements for pre-existing debt.

Conventional Loans for Bowling Alleys & Amusement Centers

Bowling alley owners looking to buy or refinance commercial real estate have the option to take out a conventional loan. If your planned acquisition has a high DSCR (Debt Service Coverage Ratio) and you have extensive experience operating a bowling alley or amusement center, you may qualify for a conventional bank business loan. Bank terms are not generally as favorable as SBA loans, but they are worth exploring.