SBA Acquisition Data

Full-Service Restaurants acquisitions in Tennessee: SBA loan data

Since FY2018, SBA lenders have approved 24 7(a) loans to buy an existing business classified as Full-Service Restaurants in Tennessee, totaling $17.7M. The median loan was $519,550. That is 3.8% of the 624 acquisition loans in Tennessee.

Loans, FY2018-FY2026
24
Median loan
$519,550 (middle half $345,625 to $891,425)
Top lender
United Community Bank (21%, 5 loans)
FY2026 loans (latest complete year)
8

SBA lenders approved 24 7(a) loans to buy a business classified as Full-Service Restaurants in Tennessee from FY2018-FY2026, with a median of $519,550 and a middle half of $345,625 to $891,425. United Community Bank made 21% of them. FY2026 had 8 loans.

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acquisition loans
24
FY2018 to FY2026
total approved
$17.7M
gross loan amount
median loan
$519,550
middle half: $346K to $891K
avg initial rate
7.91%
at approval, mixed years
median term
10 years
120 months

How Full-Service Restaurants in Tennessee compares

How Full-Service Restaurants in Tennessee compares: SBA 7(a) acquisition loans, same fiscal-year range for every column
MeasureFull-Service Restaurants in...Tennessee, all industriesFull-Service Restaurants, nationwideAll acquisitions
Median loan$519,550$807,000$411,700$645,250
Middle half of loans$345,625 to $891,425$350,000 to $1,701,750$225,000 to $819,000$283,000 to $1,465,000
Average initial rate7.91%7.90%8.08%7.76%
Median term10 years10 years10 years10 years
Charge-off rate (seasoned loans)n/a2.8%5.9%3.5%
Loans in sample246242,79748,902

The median for loans to buy restaurants in Tennessee is $519,550, below the $807,000 median for all Tennessee acquisitions, above the $411,700 median for Full-Service Restaurants acquisitions nationwide and below the $645,250 median for all SBA-financed acquisitions nationally.

The middle half runs $345,625 to $891,425, 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 7.91%, above the 7.76% national average.

Too few of these loans are old enough to measure a charge-off rate; the national rate for seasoned acquisition loans is 3.5%.

Loan size distribution

Share of loans by approved amount
Loan sizeFull-Service Restaurants in...All acquisitions
Under $350K29%30%
$350K to under $1M50%33%
$1M to under $2M17%19%
$2M and over4%17%

Most loans to buy restaurants in Tennessee (79%) were under $1M, and the largest single band is $350K to under $1M at 50%, against 33% of all acquisition loans.

Bands are fixed dollar ranges chosen for comparison. They are not SBA program limits.

Lender concentration

United Community Bank made 21% of loans to buy restaurants in Tennessee, and the top three lenders together made 46%. 2 of the 14 lenders involved made three or more. Only 2 lenders have repeat experience here. That is a rough guide to how many banks have seen this kind of deal before.

Recent activity

In FY2025 and FY2026 combined, 9 loans to buy restaurants in Tennessee were approved. Fewer than 10 loans were approved in FY2023 and FY2024, so no change is computed. The median was $541,500, in line with the $519,550 median across all years.

Full-Service Restaurants acquisition loans in Tennessee by year

Full-Service Restaurants in Tennessee: SBA acquisition loans by fiscal year. SBA fiscal years run October 1 to September 30.
Fiscal yearLoansTotal approvedMedian loan
FY2018 0
$0 -
FY2019 2
$424K $212,000
FY2020 6
$4.2M $528,900
FY2021 1
$162K $162,400
FY2022 3
$3.9M $1,855,000
FY2023 2
$1M $511,000
FY2024 1
$986K $986,000
FY2025 1
$2.3M $2,264,800
FY2026 8
$4.7M $519,550

How often do these acquisition loans fail?

Fewer than 20 Full-Service Restaurants in Tennessee acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. 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 lenders

Lender ranked by SBA acquisition loans
#LenderLoansShareDollars
1United Community Bank5
20.8%$3.5M
2Pinnacle Bank4
16.7%$2.4M
3Metro City Bank2
8.3%$3.7M
4Citizens Bank2
8.3%$829K
5Old National Bank2
8.3%$592K

Top franchise brands

Franchise ranked by SBA acquisition loans
#FranchiseLoansShareDollars
1Johnny's Pizza1
4.2%$479K
2Marco's Pizza1
4.2%$90K
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Questions buyers ask

How much do SBA loans for Full-Service Restaurants acquisitions in Tennessee run?

The median SBA 7(a) loan was $519,550 across 24 loans (FY2018 to FY2026), with the middle half between $345,625 and $891,425. 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 Full-Service Restaurants acquisitions in Tennessee?

United Community Bank (5), Pinnacle Bank (4), Metro City Bank (2), Citizens Bank (2), Old National Bank (2). Some lenders repeatedly finance this industry in this state; the counts above show which.

How often do Full-Service Restaurants acquisition loans fail in Tennessee?

Fewer than 20 loans in this combination are old enough to measure losses reliably, so no rate is shown. The national benchmark for all SBA acquisition loans is 3.5% (FY2018 to FY2021 cohort).

Are franchised businesses part of Full-Service Restaurants acquisitions in Tennessee?

2 of the 24 loans (8%) involved a franchise brand, most often Johnny's Pizza (1).

How much do you need down for an SBA loan to buy a restaurant in Tennessee?

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 restaurants in Tennessee was $519,550, and the middle half ran $345,625 to $891,425.

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 9 loans to buy restaurants in Tennessee in FY2025 and FY2026.

Which banks make SBA loans for a restaurant in Tennessee?

By loan count, FY2018 to FY2026: United Community Bank (5), Pinnacle Bank (4), Metro City Bank (2), Citizens Bank (2), Old National Bank (2). United Community Bank made 21% of loans to buy restaurants in Tennessee. Counts show past approvals only and do not predict whether a lender will approve a particular deal.

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Related

Small samples move a lot: each loan in this combination is 4% of the count. Industry is the NAICS code the lender recorded. See the methodology.

Cite this data

SBA Acquisition Data, "Full-Service Restaurants in Tennessee: SBA acquisition loan data", https://sbaacquisitiondata.com/state/tn/full-service-restaurants-722511 (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/tn/full-service-restaurants-722511.json.