Small Business Loans for Restaurants

Shield Funding has been securing small business loans for restaurant business owners for more than a decade. If you are looking to improve or expand your restaurant we offer competitive rates and flexible terms for all types of borrowers. If you have bad credit or do not qualify for traditional financing we are your trusted loan resource.

Small Business Loans for Restaurants

Estimated Business Loan Term 2 to 18+ Months
Rates 12% to 45%*
Time in Business Required 2 Months
Min Credit Score Require 500
Min Monthly Deposits Required 5
Min Monthly Revenues $8,000
Min Business Loan Amount $5,000
Max Business Loan Amount $1,000,000
Max Number of Negative Days 3 Within a Month
*rates depend on funding duration


Small Business Loans for Your Restaurant

Shield Funding has been providing small business loans for restaurant owners for over a decade. We offer a variety of business loans and services to help you finance the restaurant of your dreams—even if you have bad credit. Whether you’re looking to cover a seasonal downturn or wanting to expand to a great new location, we can help.

Restaurants have a reputation for being one of the most difficult types of business to run. This is especially true of smaller restaurants with less than 21 employees; these businesses close more often than other service-industry businesses.

But that doesn’t mean restaurants can’t succeed. In fact, restaurants with the proper funding can be very successful. And when you’re looking for help in running a successful restaurant or expanding your business, Shield Funding can help.

What Do I Need to Qualify?

Below is a list of the requirements needed to get approved for funding with our most basic program. Although in some cases there are many additional factors that may be considered, meeting these three requirements gives you a very high chance of having your application approved.

  • At Least 2 Months in Business
  • 500 Min. Credit Score
  • $8,000 Min. Monthly Revenue

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.


All of the business loans we offer do not require any upfront fees or collateral. Also, we offer bad credit business loans for restaurant owners that have a poor credit history. Here are a few of the small business loans we offer to restaurant owners:

Small Business Loans

This is a short term small business loan that you can use for anything you want. 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.

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 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.

Bad Credit Business Loans

We know that not every restaurant owner has great credit. If you don’t have great credit and you try to get a loan from a traditional lender, you’ll get denied fast. But we don’t think bad credit should disqualify you from getting a loan for your restaurant business.

So we offer term loans 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 you have two months in business and $8,000 in monthly revenue, you can qualify.

Working Capital Loans

Restaurants have a lot of day-to-day expenses, and that’s what working capital loans are 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.

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.

Here are a few of the costs that restaurant owners might use this business funding for:

Staff Costs

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.)

Seasonal Downturns

Restaurants are subject to seasonal downturns. 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 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. But you have to make the investment first.

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.

This is an important consideration for any restaurant owner looking to grow their business. You probably won’t move your restaurant, 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 RestaurantOwner.com 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 in its 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.