WASHINGTON · NAICS NAICS 7225 family
Washington restaurant projects span Seattle and Bellevue neighborhood cores, Tacoma and Spokane growth corridors, and resort towns running on compressed seasonal curves. 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 where Washington's high labor cost structure makes margin analysis the underwriting anchor.
FEASIBILITY TRIGGER
Restaurant deals are projection-based for startups, conversions, and expansions, and lenders routinely require independent studies where operating history is thin.
Between FY2010 and FY2026, SBA lenders approved and disbursed 2,781 7(a) and 504 loans for restaurant projects in Washington, totaling $1.08 billion in approved financing at an average of $388,000 per loan. Washington ranks #10 of 38 states tracked for restaurant SBA lending volume and accounts for 3.1% of national restaurant SBA dollar volume. 94.6% of these loans were made under the 7(a) program, the remainder under 504. 456 loans have been approved since FY2024.
| Disbursed loans (FY2010–FY2026) | 2,781 |
| Approved volume | $1.08 billion |
| Average loan size | $388,000 |
| 7(a) share | 94.6% |
| Approvals since FY2024 | 456 |
| State rank by loan count | #10 of 38 |
Among the 1,994 seasoned loans in this segment (approvals FY2010–FY2021), 5.2% 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 5.2% adverse-resolution rate below the national restaurant benchmark of 9.4% supports the credit story for well-underwritten Washington projects in this class. Across 2,781 SBA loans averaging $388,000, 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 Washington 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.
Washington 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, decisive in a Puget Sound market where land costs run high. 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.
Seattle's restaurant and coffee economy is among the densest in the country, and Washington's high labor cost structure 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: Virginia, West Virginia, 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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