MINNESOTA · NAICS NAICS 7225 family

    SBA Restaurants Feasibility Study in Minnesota

    Minnesota restaurant projects run through one of the country's most active SBA tables: full-service restaurants lead the state by count with 64 calendar 2025 loans for $21.2 million, with limited-service adding 43 more for $15.1 million. Lenders routinely require independent studies for startups, conversions, and expansions where operating history is thin.

    FEASIBILITY TRIGGER

    Restaurant deals are projection-based for startups, conversions, and expansions; lenders routinely require independent studies where operating history is thin.

    SBA Lending Data: Restaurants in Minnesota

    Between FY2010 and FY2026, SBA lenders approved and disbursed 2,213 7(a) and 504 loans for restaurant projects in Minnesota, totaling $816.6 million in approved financing at an average of $369,000 per loan. Minnesota ranks #13 of 38 states tracked for restaurant SBA lending volume and accounts for 2.3% of national restaurant SBA dollar volume. 83.1% of these loans were made under the 7(a) program, the remainder under 504. 267 loans have been approved since FY2024.

    Disbursed loans (FY2010–FY2026)2,213
    Approved volume$816.6 million
    Average loan size$369,000
    7(a) share83.1%
    Approvals since FY2024267
    State rank by loan count#13 of 38

    Among the 1,677 seasoned loans in this segment (approvals FY2010–FY2021), 7.5% 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.

    What this means for your loan application

    A 7.5% adverse-resolution rate below the national restaurant benchmark of 9.4% supports the credit story for well-underwritten Minnesota projects in this class. Across 2,213 SBA loans averaging $369,000, 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.

    Work with SBA feasibility study consultants

    Every Minnesota 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.

    Program fit

    Minnesota projects 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 calendar 2025 average rate ran 0.63 points below the national figure. 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.

    Minnesota evidence

    Full-service restaurants lead Minnesota by count with 64 calendar 2025 loans for $21.2 million, with limited-service adding 43 more for $15.1 million across the Twin Cities' nationally recognized dining scene.

    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: Michigan, Missouri, Texas.

    Program evidence

    Public SBA and CDC program records, cited as program evidence

    Ice Plant

    $1.1M SBA 504 through Florida First Capital

    Restaurant and bar with bottle shop, national program evidence

    St. Augustine, St. Johns County, Florida

    Frequently asked questions

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