NEW JERSEY · NAICS NAICS 7225 family
New Jersey restaurant projects compete in one of the densest, highest-cost operating environments in the country, where margin and break-even analysis carry the lender package. Studies translate concept, trade area, daypart mix, and labor structure into projections that survive underwriting, and they reconcile lease economics against a credible sales build.
FEASIBILITY TRIGGER
Restaurants are projection-based for startups, conversions, and expansions; lenders routinely require independent studies where operating history is thin.
New Jersey generated 2,538 SBA-disbursed restaurant loans between FY2010 and FY2026, worth $1.35 billion in approved 7(a) and 504 financing at an average of $533,000 per deal. Ranked #12 of 38 states for restaurant SBA volume, the state captures 3.9% of national restaurant dollars. 96.0% of the loans ran through 7(a) with 504 covering the remainder; 417 approvals have posted since FY2024.
| Disbursed loans (FY2010–FY2026) | 2,538 |
| Approved volume | $1.35 billion |
| Average loan size | $533,000 |
| 7(a) share | 96.0% |
| Approvals since FY2024 | 417 |
| State rank by loan count | #12 of 38 |
Among the 1,767 seasoned loans in this segment (approvals FY2010–FY2021), 10.5% 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 above the national benchmark for this asset class, which is a factor lenders weigh in their credit decision.
Source: SBA 7(a) and 504 FOIA loan-level data, as of March 31, 2026. Disbursed loans only. See data methodology.
A 10.5% adverse-resolution rate against the national restaurant benchmark of 9.4% tells credit committees to scrutinize revenue projections and coverage assumptions closely on New Jersey deals in this class. A rigorous third-party feasibility study — built on documented demand, defensible pricing, and stressed coverage — carries meaningful weight in that underwriting conversation, particularly at an average loan size of $533,000 across 2,538 loans.
Every New Jersey 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.
New Jersey 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 matters where North Jersey land and improvement costs run with the metro New York market. 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.
New Jersey's food economy runs deep enough to support dedicated infrastructure like the Hudson Kitchen commercial kitchen and food business incubator, and the state's high-cost operating environment makes margin and break-even analysis the center of any credible model.
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: New Hampshire, New Mexico, 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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