Limited-Service Restaurants acquisitions in California: SBA loan data
Since FY2018, SBA lenders have approved 338 7(a) loans to buy an existing business classified as Limited-Service Restaurants in California, totaling $177M. The median loan was $330,500. That is 6.5% of the 5,184 acquisition loans in California.
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How Limited-Service Restaurants in California compares
| Measure | Limited-Service Restaurants in... | California, all industries | Limited-Service Restaurants, nationwide | All acquisitions |
|---|---|---|---|---|
| Median loan | $330,500 | $600,000 | $350,000 | $645,250 |
| Middle half of loans | $200,000 to $607,250 | $296,225 to $1,395,000 | $202,500 to $693,375 | $283,000 to $1,465,000 |
| Average initial rate | 7.93% | 7.87% | 7.83% | 7.76% |
| Median term | 10 years | 10 years | 10 years | 10 years |
| Charge-off rate (seasoned loans) | 6.6% | 4.1% | 5.3% | 3.5% |
| Loans in sample | 338 | 5,184 | 2,222 | 48,902 |
The median for loans to buy fast-food restaurants in California is $330,500, well below the $600,000 median for all California acquisitions, slightly below the $350,000 median for Limited-Service Restaurants acquisitions nationwide and well below the $645,250 median for all SBA-financed acquisitions nationally.
The middle half runs $200,000 to $607,250, 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 7.93%, above the 7.76% national average.
Seasoned loans were charged off at 6.6%, well above the 4.1% rate for all California acquisitions, above the 5.3% rate for Limited-Service Restaurants acquisitions nationwide and well above the 3.5% rate for all acquisition loans.
Loan size distribution
| Loan size | Limited-Service Restaurants in... | All acquisitions |
|---|---|---|
| Under $350K | 53% | 30% |
| $350K to under $1M | 35% | 33% |
| $1M to under $2M | 9% | 19% |
| $2M and over | 3% | 17% |
Most loans to buy fast-food restaurants in California (88%) were under $1M, and the largest single band is Under $350K at 53%, against 30% of all acquisition loans.
Bands are fixed dollar ranges chosen for comparison. They are not SBA program limits.
Lender concentration
Bank of Hope made 12% of loans to buy fast-food restaurants in California, and the top three lenders together made 28%. 31 of the 81 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, 70 loans to buy fast-food restaurants in California were approved. That is 15% more than the 61 approved in FY2023 and FY2024. The median was $480,500, well above the $330,500 median across all years.
Limited-Service Restaurants acquisition loans in California by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 62 | $21M | $242,500 | |
| FY2019 | 52 | $22.8M | $298,500 | |
| FY2020 | 22 | $10.1M | $375,000 | |
| FY2021 | 31 | $17M | $250,000 | |
| FY2022 | 40 | $23.8M | $341,000 | |
| FY2023 | 29 | $15.9M | $290,000 | |
| FY2024 | 32 | $20.3M | $354,500 | |
| FY2025 | 41 | $30M | $525,000 | |
| FY2026 | 29 | $16M | $362,500 |
How often do these acquisition loans fail?
Of the 167 Limited-Service Restaurants in California acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 11 have been charged off by the SBA, a rate of 6.6% by loan count and 3.3% by dollars. 96 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 in California is 87% 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.
Terms signed in the LOI shape the purchase agreement that follows.
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Top lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Bank of Hope | 40 | 11.8% | $7M | |
| 2 | United Business Bank | 37 | 10.9% | $18.1M | |
| 3 | Hanmi Bank | 17 | 5.0% | $9.4M | |
| 4 | Plumas Bank | 17 | 5.0% | $6.4M | |
| 5 | Stearns Bank National Association | 14 | 4.1% | $2.6M |
Top franchise brands
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Subway | 26 | 7.7% | $8M | |
| 2 | Papa John's | 16 | 4.7% | $9.5M | |
| 3 | Round Table Pizza | 13 | 3.8% | $9M | |
| 4 | Mountain Mike's Pizza | 10 | 3.0% | $5.8M | |
| 5 | Papa Murphy's Take 'N' Bake Pizza | 7 | 2.1% | $2.9M |
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Questions buyers ask
How much do SBA loans for Limited-Service Restaurants acquisitions in California run?
The median SBA 7(a) loan was $330,500 across 338 loans (FY2018 to FY2026), with the middle half between $200,000 and $607,250. The loan excludes the buyer's equity and any seller note and may include working capital, so the price is usually higher than the loan.
Which banks finance Limited-Service Restaurants acquisitions in California?
Bank of Hope (40), United Business Bank (37), Hanmi Bank (17), Plumas Bank (17), Stearns Bank National Association (14). Some lenders repeatedly finance this industry in this state; the counts above show which.
How often do Limited-Service Restaurants acquisition loans fail in California?
6.6% of 167 seasoned loans (FY2018 to FY2021) were charged off, against 3.5% for all SBA acquisition loans.
Are franchised businesses part of Limited-Service Restaurants acquisitions in California?
163 of the 338 loans (48%) involved a franchise brand, most often Subway (26).
How much do you need down for an SBA loan to buy a fast-food restaurant in California?
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 in California was $330,500, and the middle half ran $200,000 to $607,250.
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 70 loans to buy fast-food restaurants in California in FY2025 and FY2026.
Which banks make SBA loans for a fast-food restaurant in California?
By loan count, FY2018 to FY2026: Bank of Hope (40), United Business Bank (37), Hanmi Bank (17), Plumas Bank (17), Stearns Bank National Association (14). Bank of Hope made 12% of loans to buy fast-food restaurants in California. Counts show past approvals only and do not predict whether a lender will approve a particular deal.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
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Related
- All California acquisitions
- Limited-Service Restaurants nationally
- Limited-Service Restaurants in Washington
- Limited-Service Restaurants in Texas
- Limited-Service Restaurants in Georgia
- Limited-Service Restaurants in Pennsylvania
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- Limited-Service Restaurants in Illinois
- Limited-Service Restaurants in Florida
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Small samples move a lot: each loan in this combination is 0% of the count. Industry is the NAICS code the lender recorded. See the methodology.
Cite this data
SBA Acquisition Data, "Limited-Service Restaurants in California: SBA acquisition loan data", https://sbaacquisitiondata.com/state/ca/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/state/ca/limited-service-restaurants-722513.json.