Skip to content

Business Loans for Restaurants

A Quick Business Loan Option for Restaurants


Shield Funding has been securing small business loans for restaurant business owners for more than a decade. We assisted business owners through the financial crisis of 2008, and we are equally prepared and experienced to help business owners through the economic crisis caused by Covid-19.

If you are looking to improve or expand your restaurant, or you need immediate business funding to cover payroll costs or other everyday operating expenses, we offer competitive rates and flexible terms for all types of borrowers. We are a great resource for existing restaurant owners that do not qualify for bank business loans or SBA loans, or if those options have have been exhausted and additional working capital is required.

What Do I Need to Qualify?

Below is a list of the requirements to get approved for business funding with our most basic program. There may be additional factors that are considered, meeting these three requirements though gives you a very high chance of having your application approved.

How Do I Apply?

Applying has never been easier. You can either call our toll free number 24 hours 7 days a week at

 (888) 882-6117


Submit your online application by clicking apply below and entering a few basic details about your business.

Types of Business Loans Available

1. Small Business Loans

This is a short term small business loan that you can use for any type of expense. You can use it to cover seasonal swings in business, pay a new chef, or open an entirely new location. Whatever you need for your business, these simple term business loans will help you get it.

We offer up to $1,000,000 in funds for restaurant owners. And with interest rates of 5–45%, you can get a better deal than you would with some traditional lenders. As long as you’ve been in business for two months, earn $8,000 or more per month, and have a credit score of 500 or more, you can qualify for one of these loans.

Our terms range from 12–36 months, so you can get the amount and terms that work for you.

2. Unsecured Business Loans

Traditional lenders often require collateral when they give you a loan, which means you’re putting your business on the line. That’s not a good way to start a financial relationship.

We offer unsecured business loans, so you don’t need to put up any collateral. Because we’re an alternative lender, we’re able to offer this funding service alongside our already great rates. You can feel more comfortable with our business loans knowing that we aren’t about to take your oven or your bar stools if you miss a payment.

3. Merchant Cash Advance Loans

We know that  restaurants have a tough time receiving working capital because of the volatility of the industry. If you try to get a loan from a traditional lender, you’ll get denied fast. But we don’t think your industry should disqualify you from getting funding for your restaurant business.

So we offer short term merchant cash advances of up to $1,000,000 to restaurant owners with credit scores above 500. You’ll pay 12–45% interest on terms up to 36 months. As long as your restaurant has been open for a few months and you have $8,000 in monthly revenue, you can qualify.

4. Working Capital Loans

Restaurants have a lot of day-to-day expenses, and that’s what working capital funding is for. Whether it’s covering payroll, stocking the bar, or taking advantage of a marketing or advertising opportunity, these loans help you with the more mundane expenses of running a restaurant.

Like our term loans, you can get up to $1,000,000 in working capital. You still get the option of terms between 12 and 36 months and interest rates from 9–45%. You’ll need to have two months in business, and at least $10,000 in monthly revenue to qualify. You’ll also need a credit score of 650 or better.

If you meet these qualifications, you can get the funding you need to cover any expense you might come across, from an emergency repair to making sure your freezers are full of food.

5. Small Business Loans for Women

Women own or co-own over half of the restaurants in the US. And we’re committed to helping them run, grow, and expand their businesses. That’s why we offer business loans specifically for female restaurant owners.

Our business loans for women include similar options to our standard short term business loans: up to $1,000,000 at 12–45% interest, with terms of 12–36 months. If you have two months in business, $8,000 in monthly revenue, and a credit rating of 500 or better, you can qualify.

Business Financing Tips For Your Restaurant

Staff Payroll Costs

Payroll funding issues have been going on long before the pandemic, and they will continue after it is gone. How much you pay in payroll depends largely on who you employ. A small suburban restaurant might not have an executive chef, which usually comes with a salary of around $60,000.

Of course, having a well-known chef can be a big driver of business. So you’ll need to balance that salary against the expected benefits. It might be worth taking out a loan to bring in a big name.

Line cooks earn around $11 per hour, which is significantly less—but if you employ several of them, the cost adds up.

Non-chef restaurant workers aren’t usually known for garnering high wages, but you may employ many of them if you’re running a large restaurant or planning an expansion. And, of course, paying higher wages will get you better employees. A waitress making $3 plus tips just isn’t going to be as friendly as a waitress making $12 plus tips.

Keep that in mind when setting your wages and figuring out how you’re going to pay for them. It’s worth it in the long run. (Of course, you could also opt for one fair wage, a growing movement that helps restaurant employees earn fair pay.)

Social Distancing Costs

Many restaurants are now faced with CDC guidelines to allow for distance between customers. This means that in order to maintain current table counts there is going to be a need for innovative barriers or extending the interior and exterior space to make customers feel comfortable as well as adhering to new guidelines. With all of the lost revenue in the current economic environment many restaurant owners need business loans for construction which is going to be on top of the business loans for payroll the SBA is offering. This is just one new cost after Covid-19.

Now restaurants are going to need disposable menus, hand sanitizing stations, and many other types of one-use items. These new items will constantly need to be replenished. Although these costs are increasing, they will make customers feel comfortable and likely to return more frequently. A business loan to accommodate the new environment may be a great way to increase traffic.

Seasonal Downturns

Restaurants are subject to seasonal downturns, another type of business cycle that affects businesses outside of economic disasters. It just happens. Many restaurants rely on foot traffic, and that’s likely to go down in the winter. Others bank on their outdoor or rooftop seating, which might not even be available in the colder months.

If your restaurant relies on visitors to another attraction or event, like a sports stadium or ski resort, you’ll face seasonal swings. It’s something almost every restaurant has to deal with.

You might be able to reduce staff hours during these times, but you’ll still have bills to pay. Utilities, wages, keeping food in stock, and other costs don’t go away when your traffic is down. And it might be worth taking out a seasonal business loan to cover your shortcomings.

On the other hand, a seasonal downturn is a great time to expand. You can close part of your restaurant to create room for expanded seating in the spring, offer fewer dishes while your kitchen is renovated, or even close down completely to move to a bigger, better location.

The right funding can help you with all of these projects.

Marketing and Advertising

Restaurants average a 3–5% profit margin, which isn’t much. That means you need consistent business to make sure you stay solvent. And you can’t rely only on foot traffic. You need to attract business any way you can.

There are many different recommendations on how much you should spend on restaurant marketing and advertising. They’re usually phrased as a percentage of your revenue. And some estimates are in the 20–25% range.

If you’re bringing in $1 million every year, that’s $200,000 or more. That’s a lot of money. Restaurants looking to grow should consider even more than that. But those restaurants are probably also spending on other growth avenues as well.

That’s why a working capital loan is such a smart idea for restaurants looking to boost their profiles. Mailers, magazine ads, online marketing, and other methods of getting your name out there really pay off. This message is amplified today because restaurant have to let customers know how they are adapting after the pandemic and the different ways they are making their customers feel safe. Investing in marketing material to get the word out is more important than ever.

The Perfect Location

Location isn’t the only factor in whether your restaurant succeeds. But it’s one of the most important. Restaurants with downtown locations that get a lot of foot traffic are more likely to bring in lots of diners than those in the suburbs or hidden away in an alley. In fact, many of the ideas about a perfect location and are making this decision even more important today.

This decision is critical for any restaurant owner looking to grow their business. You probably won’t move your restaurant unless you have to, but if you’re considering opening a new location, you’ll have to find the best place to put it.

The median rent for a restaurant in a Restaurant Owner survey was $5,000. Certainly no small sum. But the upper quartile was paying close to $9,000 every month for their space.

Whether you’re opening a new location or expanding your current business location, there’s a good chance you won’t have the cash on hand to pay for it. But taking a business loan to get the best location possible will pay off in increased revenue down the road.

No matter what the need, Shield Funding has been helping restaurant owners secure business loans for more than a decade. Apply directly to one source and work with a lender you can trust. Get a Shield Funding Restaurant Loan today!


Funding Business Dreams Everywhere

Over B
Dollars Paid Out
10000 +
Businesses Funded