TEXAS · NAICS NAICS 7225 family
Texas restaurants operate across the Triangle, the I-35 growth corridor, and dense suburban submarkets where demographics shift faster than published data. Studies tie concept fit to trade-area demographics, daypart traffic, and competitive set, then translate menu economics and labor structure into projections that hold up against realistic occupancy costs.
FEASIBILITY TRIGGER
Restaurants are projection-based for startups, conversions, and expansions; lenders routinely require independent studies where history is thin.
SBA 7(a) and 504 lenders funded 6,449 restaurant projects across Texas between FY2010 and FY2026, moving $3.39 billion in approved capital at an average ticket of $526,000. That volume places Texas at #2 of 38 states measured for restaurant SBA activity, or 9.7% of national restaurant dollars. The 7(a) program carried 93.3% of the loan count, with 504 taking the balance, and 1,022 approvals have hit the pipeline since FY2024.
| Disbursed loans (FY2010–FY2026) | 6,449 |
| Approved volume | $3.39 billion |
| Average loan size | $526,000 |
| 7(a) share | 93.3% |
| Approvals since FY2024 | 1,022 |
| State rank by loan count | #2 of 38 |
Among the 4,584 seasoned loans in this segment (approvals FY2010–FY2021), 13.4% 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 13.4% adverse-resolution rate against the national restaurant benchmark of 9.4% tells credit committees to scrutinize revenue projections and coverage assumptions closely on Texas 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 $526,000 across 6,449 loans.
Every Texas 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.
Texas projects often fit SBA 504 where owner-occupied real estate anchors the deal, with the 50/40/10 structure delivering up to 90 percent financing at a fixed debenture rate, while SBA 7(a) covers acquisitions, working capital, and equipment. From July 4, 2026 eligible borrowers can combine 7(a) and 504 for up to $10 million in total program credit, which matters for larger Texas Triangle and I-35 corridor projects.
Texas restaurant volume scales with Triangle growth, and Capital CDC-led 504 evidence runs across the asset class.
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: Tennessee, Virginia, California.
Public SBA and CDC program records, cited as program evidence
SBA 504 through Capital CDC
Restaurant financing
Texas
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