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Business Loans
for Grocery Stores

A quick business funding process that offers same day business loans for business owners.

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Compare Grocery Store Loan Options

Running a grocery store can be an expensive proposition. These stores are indispensable, so you’ll always have business—but inventory, equipment, and other operating costs can pose a challenge. Managing the inventory is especially problematic since Covid-19. There are so many uncertainties, from potential meat shortages and rising costs to dramatic swings in customer behavior, there is just no way to firmly gauge inventory costs. That’s especially true if you’re trying to grow your grocery business. Many grocery stores are in desperate need of additional staff. Others are expanding their current location to accommodate for social distancing.

Few grocery store owners will have enough cash on hand for the tens or hundreds of thousands of dollars’ worth of expenses involved in dealing with the economic uncertainties in today’s economic environment. Whether you need a business loan for your expanding payroll or one to cover social distancing construction costs we offer several types of financing that will help you run or grow your grocery business.

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What Do I Need to Qualify?

Below is a list of the general requirements to get approved for business funding with our basic program.

How Do I Apply?

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

OR

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

The Best Business Loans for Grocery Stores in 2025

Small Business Loans

Whether you’re opening a new store, expanding one you already have, or otherwise growing your business, a small business loan with favorable terms will help. You can get a small business loan up to $1,000,000 from Shield Funding for expanding your grocery business. Use it to put a down payment on a new location. Or add a coffee shop to your existing store. Upgrade your equipment. Expand your offerings.

No matter what you use it for, that money will provide a kickstart for expansion. And because you can get terms from 2–36 months, you can pay it back on a schedule that works for you. Rates range from 5–45% based on your credit and business financials, and you’ll need at least $8,000 in monthly revenues to qualify.

Merchant Cash Advance

merchant cash advance is a lot like a line of credit. You take a loan for up to $250,000 and pay it back in installments. But the difference is in how you pay it back. Instead of regular transfers from your bank account, you pay a percentage of your credit card sales each month until the loan has been repaid. It’s a convenient way to pay back a loan.

You can also qualify for a merchant cash advance with a credit rating of 500, so the requirements aren’t as stringent as those for a business line of credit. You can get a cash advance after only two months in business and you only need $8,000 in monthly revenue. You’ll get an interest rate of 24–49% and a term of between 2 and 12 months. This is a viable option for business owners with bad credit when you need cash fast (or don’t want to deal with the administrative hassle of paying back a regular loan).

Bad Credit Business Loans

If you have less-than-stellar credit, getting a loan from a traditional provider (like a bank) is nearly impossible. But we offer unsecured business loans for bad credit to borrowers with credit of 500 or more. Just because you’ve made a few credit mistakes in your past doesn’t mean you shouldn’t be able to grow your grocery business.

Bad credit business loans range from 2–18 months with some options for longer terms, depending on your credit. And you’ll need to have been in business for at least two months. Rates range from 12–45%, depending on your circumstances.

Equipment Financing

Grocery store equipment is expensive, especially if you’re opening a new location. You may be looking at a bill of over $100,000. Even a small expansion can come with a hefty bill (a single refrigeration case might be $4,000 or more). Equipment financing solves that problem. These loans are specifically for equipment. Because of their more limited use, you may get lower interest rates than you’d get with a term loan—many are under 10%.

There’s a downside to equipment financing loans, though: you often need to cover a down payment on the equipment. That payment can be as high as 20%. So if you’re opening a new location with $80,000 of equipment, you’ll need $16,000 in cash on hand. That’s prohibitive for many grocery store owners. If you’re financing a small amount of equipment or you have a lot of cash on hand, it might not be a problem. But larger expansions might be better financed with a term loan. Shield Funding can help you secure a small business loan to purchase equipment without any need for a down payment or any upfront costs.

Business Line of Credit

Grocery stores have a lot of day-to-day expenses. With the high inventory turnover of the grocery business, you’ll be making a lot of food purchases. And because of the seasonal availability of certain products, you might find that you have a limited time to make a purchase that could be a big moneymaker.

Or you might have a refrigerator that breaks and needs to be fixed before your food goes bad. Maybe you’ll come across an advertising opportunity that you can’t pass up. There are all sorts of situations where you need cash quickly to deal with something. Business lines of credit exist for that purpose. You can think of it a bit like a credit card. You put a purchase on your line of credit, pay interest on the balance, and pay it back with regular installments.

But unlike most credit cards, you can get a line of credit up to $250,000. And our rates are between 5 and 10%. That’s a much better deal than a standard business credit card. You’ll need a credit score of at least 650 to qualify, and your business needs to make at least $10,000 per month. If you meet those conditions and you’ve been in business six months or more, you can qualify for a line of credit.

Apply Directly to One Source!

Work with a direct lender and get a business loan as fast as the same day. Shield Funding offers competitive rates and terms on all it’s funding programs. Apply now with a trusted lender that has been helping business owners secure working capital for almost two decades.

Additional Grocery Store Business Funding Programs Available

SBA Business Loans

The SBA 7(a) loan is the Small Business Administration’s primary and most flexible loan program, offering up to $5 million for a wide range of business needs. Grocery store owners can use 7(a) loans for working capital, purchasing inventory or equipment, real estate acquisition, renovations, refinancing existing debt, or even buying another business. The program is open to for-profit businesses operating in the U.S. that meet SBA size standards and can demonstrate creditworthiness and the ability to repay. Interest rates are typically variable and tied to the prime rate plus a lender spread, with repayment terms up to 10 years for working capital and equipment, and up to 25 years for real estate
The SBA 504 loan program is designed specifically for major fixed asset purchases that promote business growth and job creation. Through this program, grocery stores can access up to $5.5 million in long-term, fixed-rate financing for buying or renovating real estate, constructing new facilities, or purchasing large equipment. 504 loans are structured in partnership with a Certified Development Company (CDC), a third-party lender, and the borrower, usually requiring a 10% down payment. These loans cannot be used for working capital or inventory, but they offer stable, predictable payments over 10, 20, or 25 years, making them ideal for long-term investments in property or equipment

Bank Business Loans

Wells Fargo provides grocery stores with several financing options, including business lines of credit, term loans, and SBA-backed loans. Their lines of credit offer flexible access to funds for inventory or operating expenses, while term loans are suitable for larger purchases or expansions. As an SBA-preferred lender, Wells Fargo can also help grocery stores secure government-backed loans with competitive rates and longer repayment terms. Their industry expertise and range of products make them a strong choice for grocery businesses seeking reliable funding.
Bank of America provides a range of small business financing options ideal for grocery stores, including term loans, business lines of credit, and equipment financing. These products can be used for purchasing inventory, upgrading equipment, refinancing debt, or funding expansions. Bank of America also participates in SBA lending, giving grocery store owners access to competitive rates and flexible terms backed by the federal government. Their business loans are designed to accommodate both new and established businesses, with streamlined application processes and dedicated support for business owners seeking to grow or stabilize their operations.
U.S. Bank offers a variety of financing solutions for grocery store owners, including business equipment loans, traditional fixed-rate loans, and business credit cards. Their equipment financing program allows you to borrow up to $2.5 million for new or used equipment, with flexible terms from 24 to over 60 months and no down payment required. Payments can be structured to fit your cash flow, and the equipment itself serves as collateral, so no blanket liens are needed3. U.S. Bank also provides quick loans up to $250,000 for working capital or equipment purchases, with a simplified application process and faster decisions. Additionally, their business credit cards offer cash back rewards on grocery purchases and other everyday expenses, making them a practical choice for managing store operations

Credit Union Business Loans

Self-Help Credit Union provides specialized Food System Loans for grocery stores and food-related businesses. Their offerings include SBA 7(a) and 504 loans, USDA Business and Industry Loan Guarantees, and New Markets Tax Credit program loans. These products can be used for working capital, equipment, real estate, or business expansion, and are especially supportive of projects that improve food access in underserved communities

Navy Federal Credit Union offers a suite of small business financing solutions, including business loans and lines of credit. These products can help grocery stores manage cash flow, purchase inventory, or invest in equipment. Navy Federal is known for competitive rates and strong customer support, but membership is required, typically for those with military affiliation

Hope Credit Union serves the Deep South and focuses on supporting local entrepreneurs and nonprofits, including grocery stores. They offer affordable, flexible business loans designed to help organizations grow, with a commitment to serving underserved and low-income communities

Local Grants & Business Loan Programs

For grocery stores in Pennsylvania, the PA Fresh Food Financing Initiative offers reimbursement grants to support the establishment, construction, rehabilitation, or expansion of grocery stores and other food retailers in underserved communities. Priority is given to projects in USDA-designated food deserts and to small, diverse, or veteran-owned businesses.

The Healthy Food Financing Initiative (HFFI) provides grants and loans for grocery stores and food retail projects in underserved areas, including food deserts. The program supports predevelopment, planning, and implementation, with grants up to $250,000 and loans up to $3 million. Applications are accepted on a rolling basis, with specific grant rounds during the year

The Maryland Fresh Food Financing Initiative provides financing to small businesses offering healthy food options in Maryland’s designated Food Desert Areas and Sustainable Communities. Grocery stores can access loans and grants to support new locations, expansions, or improvements that increase healthy food access in underserved neighborhoods

The Clif Family Foundation Grants Program supports initiatives that advance healthy food access, regenerative and organic farming, food production workers’ health and safety, climate justice, and community well-being. Grocery store owners may find this grant particularly relevant if their business is focused on making healthy, sustainably produced food accessible and affordable, or if they are involved in projects that improve food systems and community health. Eligible projects should align with the foundation’s priorities, such as promoting equitable food access, supporting sustainable agriculture, or creating culturally appropriate food solutions

Learn More About Grocery Store Business Loans

What Are Grocery Store Business Loans?

Grocery store business loans are designed to provide flexible working capital for a variety of needs, whether you’re looking to purchase inventory, upgrade equipment, renovate your store, or cover day-to-day expenses. These loans come in several forms, including term loans, business lines of credit, equipment financing, and SBA-backed loans, each tailored to different business models and goals. Loan amounts typically range from $5,000 to $500,000 or more, and funds can usually be used without restriction for operational or growth purposes.

Many lenders offer fixed terms and predictable payments, helping you manage cash flow and plan ahead. Options like business lines of credit provide ongoing access to funds, allowing you to draw only what you need and pay interest only on the balance used. Equipment financing lets you purchase or lease essential store equipment with affordable monthly payments, preserving your working capital for other uses. Whether you’re planning an expansion, handling seasonal inventory fluctuations, or investing in marketing, grocery store business loans offer practical, accessible solutions to keep your store thriving and competitive.

Common Uses for Grocery Store Business Loans

Grocery store business loans offer fast and flexible funding to help you manage a wide range of operational needs and seize growth opportunities. Whether you need to quickly purchase inventory ahead of busy seasons, hire additional staff, renovate your store, or invest in new equipment and technology, these loans provide the capital to keep your business running smoothly and competitively. Many lenders offer options like business lines of credit, which let you draw funds as needed and pay interest only on what you use—ideal for managing cash flow and taking advantage of bulk discounts or supplier deals

SBA loans and equipment financing are also popular choices, offering longer terms and lower rates for significant investments such as store expansions or major upgrades. Additionally, loan funds can be allocated to marketing campaigns, employee training, or implementing sustainable practices, all of which can drive customer growth and improve store operations. With streamlined application processes and a variety of financing products available, grocery store loans make it easy to access the resources you need to support day-to-day expenses, handle unexpected costs, and invest in your store’s long-term success.

What to Consider Before Getting a Grocery Store Business Loan

What Can You Afford?

Before taking out a grocery store business loan, it’s essential to carefully assess your cash flow, monthly revenue, and expenses to determine how much you can comfortably afford in loan payments. Review the loan’s total cost, including interest rates, annual percentage rate (APR), and any fees such as prepayment penalties or origination charges. Repayment terms for grocery store loans can vary widely—short-term loans may require repayment in as little as three months to two years, while long-term or SBA loans can offer terms up to 10 years for working capital and up to 25 years for real estate purchases. Make sure the repayment schedule aligns with your business’s financial cycles and won’t disrupt daily operations. Borrowing more than you can manage may strain your finances, so it’s important to choose a loan structure and term that fits your budget and supports your store’s long-term stability.

Why Do You Need The Funds?

Before applying for a grocery store business loan, it’s crucial to develop a clear plan for how you’ll use the funds to support your store’s growth and stability. These loans can be used for a wide range of purposes, such as purchasing inventory to keep shelves stocked, renovating or expanding your location, upgrading equipment, investing in marketing, or managing cash flow during seasonal fluctuations. By outlining your specific needs—whether it’s launching a new product line, improving store layout, or hiring additional staff—you can determine the right loan amount and structure for your business. A focused plan not only helps you avoid borrowing more than necessary but also strengthens your loan application, as lenders want to see exactly how the funds will contribute to your store’s success. Careful planning ensures the financing you secure will directly support your goals and position your grocery store for long-term growth.

Are Grocery Store Business Loans Right For You?

Grocery store business loans are a practical option for owners seeking working capital, inventory purchases, equipment upgrades, or expansion projects, especially if you want access to competitive rates and flexible terms. Approval for these loans typically requires a fair to strong credit score, with traditional banks often looking for scores of 670 or higher, while online lenders may accept scores as low as 600 depending on the loan type. It’s important to consider that shorter-term loans can mean higher payments compared to longer-term financing, so carefully evaluate your cash flow and repayment ability before applying. Review the total cost of the loan—including interest rates and any fees—to ensure it aligns with your business goals and won’t create unnecessary financial strain. Taking the time to assess these factors will help you choose the right financing solution to support your grocery store’s growth and long-term success

Exploring the Grocery Store Business Loan Application Process

Common Factors That Impact Your Grocery Store Business Loan Application

When applying for a grocery store business loan, lenders evaluate several factors beyond just your credit history. They place significant emphasis on your business’s overall financial health, including how long you’ve been operating, your monthly cash flow, and banking activity. Lenders also consider industry-specific risks, seasonal sales fluctuations, and your ability to consistently meet financial obligations. Because grocery stores often face unique challenges like perishable inventory and variable demand, lenders look closely at your current business performance and stability to assess repayment capability. Providing detailed financial documentation and a clear business plan can strengthen your application by demonstrating your store’s viability and growth potential.

How Much Do I Qualify For?

The amount you can qualify for with a grocery store business loan is largely determined by your store’s monthly revenue, cash flow, and overall financial stability. Lenders closely review your average monthly deposits and business performance to decide how much funding to offer, often approving loan amounts that reflect your ability to manage regular payments and maintain healthy operations. For example, strong and consistent sales, a solid deposit history, and well-managed expenses can increase your eligibility for higher loan amounts. In addition to revenue, lenders also consider factors like your creditworthiness, business plan, and time in operation to ensure the loan fits your grocery store’s financial profile. A track record of steady income and responsible financial management will help you secure more substantial funding to support your business goals.

How Does Paying Back The Grocery Store Business Loan Work?

With a grocery store business loan, repayment typically begins soon after you receive your funds and is structured to fit your business’s cash flow. Most lenders offer flexible repayment options, such as monthly, biweekly, or weekly payments, which are automatically withdrawn from your business bank account. This approach allows you to manage your loan in smaller, predictable installments, making it easier to budget and maintain steady operations. By spreading out payments over time, you can keep up with your loan obligations without putting undue strain on your daily cash flow, ensuring that your grocery store remains financially healthy while you invest in growth or cover essential expenses.

What Will a Grocery Store Business Loan Cost You?

The cost of a grocery store business loan is often determined by a factor rate, which is a fixed multiplier applied to the loan amount to calculate your total repayment. For example, if you borrow $20,000 at a factor rate of 1.15, you’ll repay $23,000 over the life of the loan, with $3,000 representing the financing cost. Unlike traditional interest rates, the factor rate is set upfront, so you know exactly how much you’ll owe from the start. Your payment schedule—whether monthly, weekly, or another structure—will determine how these payments are spread out, providing clear and predictable terms that help you plan your store’s finances with confidence.

How to Compare Grocery Store Business Loan Lender Options

Interest Rates

This is likely one of the most important benchmarks you will use to compare lending options. If one lender offers a better interest rate than the other and all other things remain the same you can have a good idea of the rate comparison. You must keep in mind that different products such as credit cards or car loans work using traditional financing interest rates and APR, but many alternative funding programs quote in a factor rate or annualized interest rates so try to compare options based on the types of loans they are most similar to. And ultimately it will come down to what you have to pay back when all is said and done.

Payback Amount

When comparing lending options, whether quoted in factor rates, interest rates, or any other framework, what is most important is what you will pay back when all is said and done. For this reason you should always try to look at what you will pay over the entire life of the loan.

Get Started on Your Small
Business Loan

We offer competitive interest rates, flexible repayment terms, and a streamlined application process. Our team of experienced loan officers will work with you every step of the way to ensure you get the funding you need to grow your business.

Frequently Asked Questions

Yes, many lenders allow you to use business loan funds for energy efficiency improvements, which can help reduce your long-term operating costs and may even qualify you for local or utility rebates.

Yes, programs like the Healthy Food Financing Initiative (HFFI) and various state-level initiatives provide grants and low-interest loans to grocery stores opening or expanding in food deserts to improve healthy food access.

Absolutely. Equipment such as refrigeration units or point-of-sale systems, and sometimes non-perishable inventory, can be used as collateral to secure a loan and potentially lower your interest rate

Yes, but options may be limited. Startups often need to provide a strong business plan, projections, and may be required to offer more collateral or accept higher rates until they establish a financial track record.

Yes, lenders often provide equipment financing or targeted expansion loans for adding new departments, which can cover the cost of specialized equipment and renovations.

Yes, certain lenders and credit unions, as well as government and community programs, offer loans and grants tailored for cooperatives and nonprofit grocery stores, especially those focused on community food access.