MICHIGAN · NAICS NAICS 7225 family
Michigan restaurant projects span Grand Rapids and Detroit neighborhood cores, the Ann Arbor university market, and resort-town summer demand from Traverse City to the Mackinac corridor. 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, Michigan recorded 3,004 SBA-disbursed restaurant loans across the 7(a) and 504 programs, representing $1.06 billion in approved financing at an average loan size of $352,000. The state sits at rank #8 of 38 for restaurant SBA lending volume and holds 3.0% of the national restaurant dollar pool. 7(a) accounts for 90.8% of the count, 504 for the rest, with 465 fresh approvals dated FY2024 or later.
| Disbursed loans (FY2010–FY2026) | 3,004 |
| Approved volume | $1.06 billion |
| Average loan size | $352,000 |
| 7(a) share | 90.8% |
| Approvals since FY2024 | 465 |
| State rank by loan count | #8 of 38 |
Among the 2,164 seasoned loans in this segment (approvals FY2010–FY2021), 6.1% 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 6.1% adverse-resolution rate below the national restaurant benchmark of 9.4% supports the credit story for well-underwritten Michigan projects in this class. Across 3,004 SBA loans averaging $352,000, 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 Michigan 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.
Michigan 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, and the state's Collateral Support Program can layer up to 40 percent collateral coverage onto qualifying deals. 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 drew $45.7 million across 107 calendar 2025 Michigan loans, with limited-service adding $42.8 million across 93 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: Massachusetts, Minnesota, Texas.
Public SBA and CDC program records, cited as program evidence
SBA 504 through Ohio Statewide Development Corporation paired with an Ohio 166 Regional Loan
Café project pairing the 504 with state stacking, national program evidence
Westerville, Franklin County, Ohio
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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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