ARIZONA · NAICS NAICS 7225 family
Arizona restaurant projects span the Phoenix, Scottsdale, and Tucson metros and the Sedona and Flagstaff destination corridors. Studies translate trade-area demographics, daypart mix, check averages, and labor models into projections, and reconcile lease economics or owner-occupied real estate structures against coverage under stress.
FEASIBILITY TRIGGER
Restaurant deals are projection-based for startups, conversions, and expansions, and lenders routinely require independent studies where operating history is thin.
From FY2010 through FY2026, Arizona recorded 1,355 SBA-disbursed restaurant loans across the 7(a) and 504 programs, representing $742.3 million in approved financing at an average loan size of $548,000. The state sits at rank #20 of 38 for restaurant SBA lending volume and holds 2.1% of the national restaurant dollar pool. 7(a) accounts for 87.8% of the count, 504 for the rest, with 253 fresh approvals dated FY2024 or later.
| Disbursed loans (FY2010–FY2026) | 1,355 |
| Approved volume | $742.3 million |
| Average loan size | $548,000 |
| 7(a) share | 87.8% |
| Approvals since FY2024 | 253 |
| State rank by loan count | #20 of 38 |
Among the 945 seasoned loans in this segment (approvals FY2010–FY2021), 7.6% reached adverse resolution — purchased, liquidated, or charged off. The national benchmark for restaurant is 9.4%, against 7.3% across all industries. That performance runs below the national benchmark for this asset class, a credit-positive signal for lenders.
Source: SBA 7(a) and 504 FOIA loan-level data, as of March 31, 2026. Disbursed loans only. See data methodology.
A 7.6% adverse-resolution rate below the national restaurant benchmark of 9.4% supports the credit story for well-underwritten Arizona projects in this class. Across 1,355 SBA loans averaging $548,000, that track record does not eliminate the need for a third-party feasibility study, but it means a rigorous study reinforces rather than defends the projections.
Every Arizona restaurants project we underwrite follows the same lender ready process: independent market analysis, site and technical review, and financial projections tested against SBA SOP 50 10 8 standards. Our SBA feasibility study consultants guide explains scope, timing, deliverables, and what lenders and CDCs expect in the report.
Arizona projects most often pencil under SBA 504 because the 50/40/10 structure delivers up to 90 percent financing on owner-occupied real estate at a fixed debenture rate, which is decisive in a state where Sun Belt growth has pushed land and improvement costs higher each cycle. SBA 7(a) covers acquisitions, working capital, and equipment, and from July 4, 2026 eligible borrowers can combine 7(a) and 504 for up to $10 million in total program credit.
Full-service restaurants lead Arizona's SBA volume at $27.9 million across 58 calendar 2025 loans, with limited-service at $27.4 million across 52 and snack and beverage bars adding $21.2 million more.
For a national view of this asset class, see our restaurant SBA feasibility overview, and read our related analysis in the restaurant lending research on our blog.
Compare neighboring markets: California, Texas.
Public SBA and CDC program records, cited as program evidence
$1.1M SBA 504 through Florida First Capital
Restaurant and bar with bottle shop, national program evidence
St. Augustine, St. Johns County, Florida
Fifteen-minute scoping call, written proposal inside one business day, firm fixed fee before you sign.
Book a MeetingOur SBA feasibility study consultants prepare lodging and hospitality studies for lenders, CDCs and sponsors. See pricing, methodology or request a fixed fee quote.
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