PHD Financial has significant depth of experience with restaurant and hospitality finance. This is almost always an industry with lots of growth. If your dream is to open, buy, or expand an existing restaurant business,PHD Financial is the firm you need. We provide financing for both franchise and independent restaurants.

SBA Loans for Restaurants

While privately-insured loans are common in the restaurant industry, the SBA 7(a) and SBA 504 loan programs are also very effective ways to finance your restaurant business. With SBA loans, restaurant owners can purchase property, buy equipment and get working capital for their business. SBA loans have many of benefits, but also have stricter requirements than most other kinds of financing, including higher credit score requirements.

Restaurant Loan Terms

In general, restaurant 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, 7 and 10-year fixed rate terms
  • Amortization 15, 20, 25 and 30-year options
  • Leverage: 75% LTV allowance (subordinate debt permitted)
  • DSCR: 1.40 minimum DSCR
  • Credit Score Requirement: 660 minimum

CMBS Loans for Restaurants

For restaurant owners seeking a larger amount of commercial property financing, PHD Financial can arrange conduit loans, otherwise known as CBMS loans, for eligible projects. A typical CMBS loan includes:

  • Loan Size: $2,000,000 and up
  • Loan Term: 5, 7, or 10-year fixed-rate loans
  • Interest Rates: 4.9% (for 10-year fixed)
  • Amortization: 30 years
  • Leverage: 75% maximum LTV allowance
  • DSCR: 1.25 minimum
  • Recourse: Non-recourse (with standard carve-outs)