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SBA lending data

SBA loans for coffee shops, juice bars and other snack and beverage bars

Almost half of SBA loans in this industry financed a shop that had not opened yet. For most borrowers here, the question is not how a lender reads their tax returns but how it reads a plan.
Written by the Transparent underwriting desk · Updated
Quick answer

SBA lenders approved 2,606 7(a) loans to snack and nonalcoholic beverage bars, such as coffee shops, smoothie and juice bars, ice cream and donut shops, between October 2023 and June 2026: about $1.06 billion from 441 lenders. Start-ups took 48.4% of loans and franchises 42.8%. The median loan was $291,500, nearly twice the national $150,300, at a median rate of 10%. Approval turns on the operator's experience, the equity going in, a build-out budget and a lease that outlasts the loan, and for franchises, the brand's record.

Snack and Nonalcoholic Beverage Bars: what SBA lenders approvedSBA loan records
MeasureSnack and Nonalcoholic Beverage BarsAll industries
SBA 7(a) loans approved2,606162,355
Median loan$291,500$150,300
Middle half of loans$74,000 – $514,800$50,000 – $500,000
Loans of $1 million or more7.9%12.9%
Median rate at approval10%10.25%
Middle half of rates9.25% – 10.75%9.3% – 11.25%
Acquisitions (change of ownership)213 (8.2%)16,849 (10.4%)
Median acquisition loan$382,500$693,000
Lenders that made these loans4411,648
SBA 504 loans (real estate, equipment)11616,714

Approvals FY2024 – FY2026 to date (1 Oct 2023 – 30 Jun 2026), cancelled loans excluded. Source: SBA 7(a) and 504 FOIA loan records, as of June 30, 2026.

SBA 7(a) loans approved
2,606 (Oct 2023 – Jun 2026)
Median loan
$291,500 (national $150,300)
Start-ups
48.4% of loans
Franchises
42.8% of loans
Median rate at approval
10% (national 10.25%)
Acquisitions
213 loans (8.2%), median $382,500

What the figures show for coffee, smoothie, ice cream and donut shops

NAICS 722515 covers businesses that sell coffee, tea, juice, smoothies, ice cream, frozen yogurt, donuts, cookies, pretzels and similar items for customers to take away or eat on the spot. From FY2024 through June 2026, 441 lenders approved 2,606 7(a) loans to them, worth $1,060,495,700. The profile is distinctive. Loans are large for such small shops, because a new unit needs espresso machines or soft-serve equipment, refrigeration, millwork and a brand-standard interior before it opens. And the borrower is very often opening that unit for the first time.

SBA 7(a) approvals to snack and nonalcoholic beverage bars, 1 Oct 2023 – 30 Jun 2026, cancelled loans excluded; national figures across all industries.
FigureSnack and beverage barsNationalReading
Median loan$291,500$150,300Build-outs and equipment drive loan size
Middle half$74,000 to $514,800Equipment refreshes at the bottom; full new units at the top
90th percentile$864,950Multi-unit and real estate loans
Median rate10% (middle half 9.25% to 10.75%)10.25%Slightly below the program median
Start-ups48.4% of loansNearly half the loans financed a new shop
Franchises42.8% of loansBrands carry much of the industry
Acquisitions213 loans (8.2%), median $382,500 at 9.5%10.4%Fewer purchases than the program average
SBA Express26.1% of loansExpress guarantees only 50%; new-unit build-outs usually go standard 7(a)
Median jobs supported9Staffed counters, often with part-time crews

Lending to a shop that has not opened

With start-ups at 48.4% of loans, new shops make up a larger share of lending here than even in fast-food restaurants, and the underwriting follows from that. There are no tax returns for the business, so the lender looks at four things instead.

  • The equity. SBA requires an equity injection of at least 10% of total project costs for a start-up, and lenders often want more when the concept is independent or the site unproven. Project costs include the build-out, equipment, opening inventory, franchise fees, and working capital to carry the shop while sales build.
  • The operator. Running a busy counter is a management job: scheduling part-time staff, controlling waste, keeping equipment running. Lenders look for someone who has managed a food or beverage operation, not only someone who loves coffee. An owner who plans to keep a full-time job elsewhere and hire a manager is a harder case for a start-up.
  • The build-out budget. Contractor bids, equipment quotes and a contingency. Overruns in a build-out are paid with the working capital meant for the ramp, which is how new shops run short in their first year.
  • The projection. A monthly forecast of sales, labor and occupancy through the ramp, showing how loan payments are met. Lenders test it against what comparable shops actually do, and against the guarantors' own resources: outside income and liquid assets are the second source of repayment while the shop builds.
Franchise start-upIndependent start-up
What the lender leans onThe brand's disclosed unit performance, training and site approvalThe operator's own experience and the quality of the plan
Eligibility checkFranchise agreement must meet SBA rules; brand on SBA's franchise directoryStandard SBA eligibility
Ongoing costs to modelRoyalties, marketing fund, required suppliers and remodelsMarketing, menu development, equipment service
Typical lender concernWhether the operator can execute the systemWhether the concept draws enough traffic at this site

Every owner of 20% or more personally guarantees the loan, and on a start-up with little hard collateral, lenders commonly take a lien on the owner's home where there is equity. See SBA personal residence collateral.

The lease decides more than the menu

A snack or beverage bar lives on traffic: commuters, shoppers, students, a drive-thru lane. The location is most of the business, and the lease is how the business holds it. Lenders commonly want the remaining term, counting renewal options, to run at least as long as the loan. They read the lease for relocation clauses, exclusive-use rights that keep a competitor out of the same center, co-tenancy provisions, and any tenant improvement allowance the landlord is contributing to the build-out.

Most of what the loan buys becomes leasehold improvements, which have little value if the shop closes. Equipment has some resale value, and lenders will usually ask the landlord to sign a waiver so they can reach it. See landlord waiver. SBA 504 financed 116 projects in this industry at a median of $545,500, for operators buying or building their premises or long-life equipment; 504 typically splits a project 50% bank, 40% CDC and 10% borrower, and 15% for a new business. See SBA 7(a) vs SBA 504.

A lease shorter than the loan, counting options, is a problem to solve with the landlord before the file goes to a lender.

Buying an existing shop

Acquisitions were 213 loans, 8.2% of the industry's total, below the national 10.4%, at a median of $382,500 and a median rate of 9.5%. The lower share reflects how many shops in this industry are new, and how many independents are owner-run businesses whose regulars come for the owner. A purchase is a stronger file than a start-up because the seller's returns show real sales, but a lender will ask how dependent those sales are on the person leaving.

For a franchise resale, the franchisor must approve the buyer and may require a remodel as a condition of transfer; that cost belongs in the loan. For any purchase, SBA requires at least 10% equity; a seller note counts for up to half of it only on full standby for the life of the loan; and no earnout is allowed. Coverage of at least 1.15x applies today, and from 1 October 2026 a change of ownership must show 1.25x on historical results. See financing a coffee shop acquisition and financing a franchise resale.

Preparing the file

For an existing shop, start with SBA's list: business tax returns for 2–3 years, a P&L and balance sheet with a year-to-date P&L, a debt schedule, and personal tax returns and a personal financial statement for each owner of 20% or more. For a start-up, the personal documents carry more of the weight, and the plan replaces the history. Either way, add:

  • The lease or letter of intent for the space, with renewal options and any landlord contribution
  • Contractor bids and equipment quotes for the build-out
  • The franchise agreement and disclosure document, if it is a franchise
  • A monthly projection through the first two years, with the assumptions written down
  • The owner's resume, supporting Form 1919's management experience, and a use-of-proceeds narrative
  • For an existing shop, point-of-sale reports that tie to the tax returns

Transparent builds the full lender package — financing model, lender presentation, blind teaser and underwriting memo — in a day once the documents are in, and takes it to the 278 lenders in its book that write SBA 7(a) and 504. Lenders differ widely in their appetite for start-ups and for particular brands, and 441 lenders approved loans in this industry, so the choice of lender matters as much as the file. On SBA loans the lender pays Transparent, not the borrower. See how we underwrite.

Common questions

Can I get an SBA loan to open a coffee shop?
Yes. Start-ups were 48.4% of SBA 7(a) loans to snack and beverage bars from October 2023 to June 2026. Expect to put in at least 10% of total project costs, show food or beverage management experience, present contractor bids and a monthly projection, and hold a lease that runs as long as the loan.
How much do SBA loans to coffee shops and smoothie bars run?
The median 7(a) loan was $291,500, with the middle half between $74,000 and $514,800 and the 90th percentile at $864,950. That is nearly twice the national median of $150,300, because build-outs and equipment are expensive relative to the size of the shop.
Is it easier to get an SBA loan for a franchise than an independent shop?
Often, because the lender can rely on the brand's disclosed results and training. Franchises were 42.8% of loans. But the franchise must be on SBA's directory, the operator still needs relevant experience, and royalties reduce the cash available for loan payments.
What rate do snack and beverage bars pay on SBA loans?
The median rate at approval was 10%, below the national 10.25%, with the middle half between 9.25% and 10.75%. Acquisition loans priced at a median of 9.5%. Only 13.6% of loans were fixed-rate.
Will an SBA lender finance an ice cream shop that closes in winter?
It can, if annual cash flow covers twelve months of payments and the plan shows how the off-season is carried. Lenders will want to see monthly figures, not only annual ones, so the seasonal gap is visible.
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