SBA Loans for Restaurant Equipment
Everything you need to know about financing your equipment purchase with an SBA loan. Plus a free documentation checklist to streamline your application.
Why Use SBA Loans for Restaurant Equipment?
SBA loans are one of the most cost-effective ways to finance restaurant equipment. With lower interest rates, longer repayment terms, and smaller down payments than conventional loans, they can significantly reduce your monthly payment while preserving working capital for operations.
For multi-unit operators financing $100,000+ in equipment, the savings can be substantial. And with the right documentation, approval rates are higher than you might expect.
Lower Rates
Prime + 2.25-2.75% typical for equipment
Longer Terms
Up to 10-20 years vs. 3-5 year conventional
Lower Down Payment
10-20% vs. 20-30% conventional
SBA Loan Types for Equipment
Not all SBA loans are created equal. Here are the main options for financing restaurant equipment.
SBA 7(a) Loan
Most common SBA loan for general business purposes including equipment.
Best For
Multi-purpose financing, working capital + equipment
- Can finance multiple expense types
- Flexible use of funds
- Competitive interest rates
- Longer repayment terms
SBA 504 Loan
Designed for major fixed assets like equipment and real estate.
Best For
Large equipment purchases, real estate
- Lower down payments (10%)
- Fixed interest rates
- Longer terms = lower payments
- Ideal for expensive equipment
SBA Express
Faster approval process for smaller loan amounts.
Best For
Faster funding, smaller equipment needs
- Approval in 36 hours
- Less paperwork
- Good for equipment under $500K
- Simpler application process
Pro Tip
Many multi-unit operators combine an SBA 7(a) loan for equipment with traditional financing for working capital. Your lender can help structure the optimal mix for your situation.
SBA Documentation Checklist
Lenders will request these documents during the application process. Having them ready speeds up approval significantly.
Business Information
- Business plan with financial projections
- Business license and permits
- Articles of incorporation or organization
- Franchise agreement (if applicable)
- Lease agreement for business location
- Resumes of key owners/managers
Financial Documents
- Personal financial statements for all owners (20%+ ownership)
- 3 years of business tax returns
- 3 years of personal tax returns for all owners
- Year-to-date profit & loss statement
- Current balance sheet
- Bank statements (last 3-6 months)
- Accounts receivable/payable aging reports
Equipment Documentation
- Itemized equipment list with specifications
- Equipment quotes from vendor(s)
- Equipment cost breakdown by category
- Installation cost estimates
- Delivery and freight estimates
- Expected useful life of equipment
Additional Requirements
- Personal guarantee from owners
- Collateral documentation
- Insurance certificates
- Environmental compliance (if applicable)
- Construction permits (if applicable)
Equipment Itemization Requirements
SBA lenders require detailed equipment lists. Here's exactly what information you need to include for each item.
| Required Field | Description | Example |
|---|---|---|
| Item Description | Detailed name of each piece of equipment | True TWT-48SD-HC 48" Worktop Refrigerator |
| Manufacturer | Brand/manufacturer name | True Manufacturing |
| Model Number | Exact model/SKU | TWT-48SD-HC |
| Quantity | Number of units needed | 3 |
| Unit Price | Cost per unit before tax/shipping | $3,245.00 |
| Extended Price | Quantity × Unit Price | $9,735.00 |
| Category | Equipment category for organization | Refrigeration |
| Expected Life | Useful life in years (for depreciation) | 10 years |
Sample Equipment Line Item
| Item | Mfr | Model | Qty | Unit Price | Extended | Category | Life | |-----------------------------------|--------------|--------------|-----|------------|-----------|---------------|------| | 48" Worktop Refrigerator, 2-Door | True Mfg | TWT-48SD-HC | 3 | $3,245.00 | $9,735.00 | Refrigeration | 10yr |
How Concept Services Helps
We've helped hundreds of operators get their SBA loan equipment documentation right the first time.
Itemized Equipment Lists
We provide detailed, SBA-compliant equipment lists with all required specifications, pricing, and categorization.
Professional Quotes
Official quotes on company letterhead with itemization that lenders recognize and accept.
Cost Breakdowns
Clear separation of equipment, shipping, installation, and other costs for easy lender review.
Lender Communication
We work directly with your lender to answer equipment questions and provide additional documentation.
Need SBA-Ready Equipment Documentation?
We provide lender-ready equipment quotes and itemized lists formatted exactly how SBA lenders want to see them.
Free: SBA Equipment Documentation Checklist
A printable PDF checklist covering everything you need to prepare for your SBA equipment loan application.
Ready to Get Started?
Whether you're financing one location or fifty, we can help you get the documentation you need.