Loan Size Example

$3 Million Restaurant SBA Owner-User Acquisition

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $3 million restaurant SBA owner-user acquisition typically combines real estate, FF&E, working capital, franchise fees, and goodwill for a single-unit franchise restaurant or independent concept. Most $3M restaurant SBA acquisitions allocate $1.5M to $2M to real estate (SBA 504) and $1M to $1.5M to operating business (SBA 7(a)).

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Capital Stack

What a $3M Restaurant Owner-User Capital Stack Looks Like

$3M restaurant SBA owner-user acquisitions typically combine SBA 504 for real estate and SBA 7(a) for operating business pieces.

Capital Source	Rate / Cost	Size / LTV	Notes
SBA 504 real estate	Bank 1st 7.00% / CDC 5.85% fixed	$1.8M / 80 to 90% LTC	Special-purpose 20% down for drive-through QSR
SBA 7(a) operating	Prime + 2.50%	$1.2M / 90% LTC	FF&E + franchise fees + working capital + goodwill
Total SBA	Blended ~7.05%	$3M / 88% LTC	$360K borrower equity
Specialty restaurant bank	Prime + 2.00 to 2.75% (SBA wrap)	$3M / 85 to 90% LTC	Live Oak Bank dominant

Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.

Sponsor Profile

Who Closes a $3M Restaurant Owner-User Deal

Typical $3M restaurant SBA sponsors are first-time franchisee owner-operators or experienced multi-unit franchisees. Restaurant industry experience is heavily weighted in SBA underwriting.

From the CLS CRE Pipeline

A Real $3M Example

On a $3.2M acquisition of a single-unit franchise restaurant in a Sun Belt suburban market, the buyer was an experienced restaurant manager transitioning to ownership. Combined SBA 504 + 7(a) financed at 88 percent LTC blended.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$3M Restaurant SBA Owner-User FAQ

Most major QSR, fast-casual, and full-service restaurant brands are on the SBA Franchise Directory. Independent concepts also qualify subject to SBA underwriting standards.

Drive-through QSR is typically special-purpose (20 percent down). Full-service and fast-casual in adaptive reuse retail are sometimes standard 10 percent down.

Yes. SBA 7(a) finances franchise fees for franchise concepts on the SBA Franchise Directory.