Limited-Service Restaurants: SBA business acquisition loan data
2,222 SBA 7(a) loans since FY2018 financed the purchase of an existing business classified as Limited-Service Restaurants (NAICS 722513), totaling $1.4B. Median loan $350,000, 46% lower than the all-acquisition median. 54% of these deals were franchised units.
- Loans, FY2018-FY2026
- 2,222
- Median loan
- $350,000 (middle half $202,500 to $693,375)
- Top lender
- Live Oak Banking Company (5%, 113 loans)
- Top state
- California
- Charge-off, FY2018-FY2021 loans
- 5.3% (all-acquisition: 3.5%)
- FY2026 loans (latest complete year)
- 234 (-15% vs FY2025)
SBA lenders approved 2,222 7(a) loans to buy fast-food restaurants from FY2018-FY2026, with a median of $350,000 and a middle half of $202,500 to $693,375. Live Oak Banking Company made 5% of them. 5.3% of 1,057 seasoned loans were charged off, 51% higher than the 3.5% all-acquisition rate.
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The median SBA loan to buy fast-food restaurants was $350,000 across 2,222 acquisition loans (FY2018 to FY2026), 46% lower than the $645,250 median for all SBA-financed acquisitions. Live Oak Banking Company, The Huntington National Bank and Hanmi Bank made the most of them. Of 1,057 seasoned loans (FY2018 to FY2021), 5.3% were charged off, 51% higher than the 3.5% average for all SBA acquisition loans.
Reading this industry's numbers
- Deal size. The loan excludes the buyer's equity and any seller note and may include working capital. A loan request far above $693,375 would be in the top quarter of SBA acquisition loans in this industry.
- Share of all acquisitions. This industry is 4.5% of all SBA-financed business purchases, ranking #3 of 300 industries tracked.
- Geography. California leads with 338 loans; the top five states account for 39% of the industry's acquisitions.
- Jobs. Lenders reported 43,266 jobs supported across these loans, about 19.5 per acquisition, a rough proxy for the size of business changing hands.
How the Limited-Service Restaurants industry compares
| Measure | Limited-Service Restaurants | All acquisitions |
|---|---|---|
| Median loan | $350,000 | $645,250 |
| Middle half of loans | $202,500 to $693,375 | $283,000 to $1,465,000 |
| Average initial rate | 7.83% | 7.76% |
| Median term | 10 years | 10 years |
| Charge-off rate (seasoned loans) | 5.3% | 3.5% |
| Loans in sample | 2,222 | 48,902 |
The median for loans to buy fast-food restaurants is $350,000, well below the $645,250 median for all SBA-financed acquisitions nationally.
The middle half runs $202,500 to $693,375, against $283,000 to $1,465,000 nationally; the median term is 10 years, the same as the national median; the average initial rate is 7.83%, in line with the 7.76% national average.
Seasoned loans were charged off at 5.3%, well above the 3.5% rate for all acquisition loans.
Loan size distribution
| Loan size | Limited-Service Restaurants | All acquisitions |
|---|---|---|
| Under $350K | 48% | 30% |
| $350K to under $1M | 36% | 33% |
| $1M to under $2M | 10% | 19% |
| $2M and over | 6% | 17% |
Most loans to buy fast-food restaurants (84%) were under $1M, and the largest single band is Under $350K at 48%, against 30% of all acquisition loans.
Bands are fixed dollar ranges chosen for comparison. They are not SBA program limits.
Lender concentration
Live Oak Banking Company made 5% of loans to buy fast-food restaurants, and the top three lenders together made 14%. 164 of the 462 lenders involved made three or more. Repeat experience is spread across many banks. That is a rough guide to how many banks have seen this kind of deal before.
Recent activity
In FY2025 and FY2026 combined, 509 loans to buy fast-food restaurants were approved. That is 12% more than the 455 approved in FY2023 and FY2024. The median was $425,000, above the $350,000 median across all years.
Limited-Service Restaurants acquisitions by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 257 | $107M | $250,000 | |
| FY2019 | 312 | $150M | $279,500 | |
| FY2020 | 224 | $126M | $339,500 | |
| FY2021 | 264 | $166M | $368,500 | |
| FY2022 | 201 | $152M | $415,000 | |
| FY2023 | 213 | $122M | $350,000 | |
| FY2024 | 242 | $152M | $389,900 | |
| FY2025 | 275 | $201M | $460,000 | |
| FY2026 | 234 | $177M | $401,550 |
How often do these acquisition loans fail?
Of the 1,057 Limited-Service Restaurants acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 56 have been charged off by the SBA, a rate of 5.3% by loan count and 3.3% by dollars. 631 have already been paid in full.
For comparison, the charge-off rate across all SBA 7(a) acquisition loans in the same cohort is 3.5%, so Limited-Service Restaurants is 51% higher than the acquisition-loan average. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
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Top states
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | California | 338 | 15.2% | $177M | |
| 2 | Washington | 185 | 8.3% | $82M | |
| 3 | Texas | 145 | 6.5% | $109M | |
| 4 | Georgia | 106 | 4.8% | $57.5M | |
| 5 | Pennsylvania | 98 | 4.4% | $40.1M | |
| 6 | Michigan | 95 | 4.3% | $68.7M | |
| 7 | Illinois | 90 | 4.1% | $74.4M | |
| 8 | Florida | 85 | 3.8% | $49.6M | |
| 9 | Ohio | 81 | 3.6% | $46.9M | |
| 10 | New York | 72 | 3.2% | $50.9M |
Most active lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 113 | 5.1% | $155M | |
| 2 | The Huntington National Bank | 108 | 4.9% | $52.2M | |
| 3 | Hanmi Bank | 91 | 4.1% | $37.2M | |
| 4 | Stearns Bank National Association | 80 | 3.6% | $18.5M | |
| 5 | Bank of Hope | 68 | 3.1% | $13.8M | |
| 6 | Banc of California | 49 | 2.2% | $50.3M | |
| 7 | United Business Bank | 42 | 1.9% | $21.4M | |
| 8 | Manufacturers and Traders Trust Company | 36 | 1.6% | $10.1M | |
| 9 | Byline Bank | 35 | 1.6% | $32.7M | |
| 10 | Northwest Bank | 31 | 1.4% | $18M |
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Franchise brands in Limited-Service Restaurants
54% of acquisition loans in this industry involved a franchised unit. Brands with the most SBA-financed resales:
| # | Brand | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Subway | 190 | 16.0% | $70.3M | |
| 2 | Domino's Pizza | 87 | 7.3% | $93.9M | |
| 3 | Dairy Queen | 80 | 6.7% | $56.3M | |
| 4 | Little Caesars | 55 | 4.6% | $57.9M | |
| 5 | Firehouse Subs | 50 | 4.2% | $26M | |
| 6 | Jimmy John's | 43 | 3.6% | $40.4M | |
| 7 | Papa John's | 34 | 2.9% | $27M | |
| 8 | Papa Murphy's Take 'N' Bake Pizza | 28 | 2.4% | $21.7M | |
| 9 | Marco's Pizza | 24 | 2.0% | $13.2M | |
| 10 | Tropical Smoothie Cafe | 20 | 1.7% | $15.7M | |
| 11 | Culver's | 18 | 1.5% | $25.1M | |
| 12 | American Deli | 18 | 1.5% | $7.8M | |
| 13 | Jersey Mike's Subs | 14 | 1.2% | $10.6M | |
| 14 | Jet's Pizza | 14 | 1.2% | $5.5M | |
| 15 | Round Table Pizza | 13 | 1.1% | $9M |
Questions buyers ask
How much is a typical SBA loan to buy a business in Limited-Service Restaurants?
Median $350,000 across 2,222 acquisition loans (FY2018 to FY2026); the middle half ran $202,500 to $693,375. That is 46% lower than the $645,250 median for all SBA-financed acquisitions.
Which lenders finance the most Limited-Service Restaurants acquisitions?
Live Oak Banking Company (113), The Huntington National Bank (108), Hanmi Bank (91), Stearns Bank National Association (80), Bank of Hope (68).
Are businesses in Limited-Service Restaurants often franchised?
Yes, often. 54% of SBA acquisition loans in this industry financed a franchised unit. Top brands: Subway, Domino's Pizza, Dairy Queen, Little Caesars, Firehouse Subs.
How risky are SBA loans for buying a business in Limited-Service Restaurants?
Of 1,057 seasoned loans (FY2018 to FY2021), 5.3% charged off, 51% higher than the 3.5% benchmark for all SBA acquisition loans.
What loan terms are common for Limited-Service Restaurants acquisitions?
Median term 10 years, average initial rate 7.83% at approval (blended across years and fixed/variable structures). Terms longer than 10 years usually indicate real estate was included in the purchase.
How much do you need down for an SBA loan to buy a fast-food restaurant?
The SBA requires the buyer to make an equity injection, commonly 10% of total project cost, and a lender may ask for more. The SBA file does not record injections, so the figures here are the financed portion: the median for loans to buy fast-food restaurants was $350,000, and the middle half ran $202,500 to $693,375.
How long does an SBA acquisition loan take?
For a change-of-ownership 7(a) loan, 45 to 90 days from application to close is typical. It varies by lender and by how quickly third-party reports, such as the business valuation and appraisal, come back. The SBA file records approval dates, not application dates, so this site cannot measure it. Lenders approved 509 loans to buy fast-food restaurants in FY2025 and FY2026.
Which banks make SBA loans for a fast-food restaurant?
By loan count, FY2018 to FY2026: Live Oak Banking Company (113), The Huntington National Bank (108), Hanmi Bank (91), Stearns Bank National Association (80), Bank of Hope (68). Live Oak Banking Company made 5% of loans to buy fast-food restaurants. Counts show past approvals only and do not predict whether a lender will approve a particular deal.
Seller note standby terms and third-party consents are reviewed before closing.
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Cite this data
SBA Acquisition Data, "Limited-Service Restaurants: SBA acquisition loan data", https://sbaacquisitiondata.com/industry/limited-service-restaurants-722513 (data as of September 30, 2026). Source: U.S. Small Business Administration 7(a) loan file, data.sba.gov. Aggregated by SBA Acquisition Data.
The figures on this page are also published as JSON at https://sbaacquisitiondata.com/data/industry/limited-service-restaurants-722513.json.