Restaurant owners in Memphis and Knoxville face high startup and operating costs—kitchen equipment, build-outs, staffing, marketing, and seasonal cash flow fluctuations. This guide outlines funding solutions for restaurants and cafés in both cities, including grants, loan programs, and strategies to succeed.
Key funding needs include:
Commercial-grade ovens, refrigerators, mixers
Remodels, interior design, outdoor patios
Kitchen staff, front-of-house pay, training
Inventory, licensing, permits, and insurance
Seasonal cash flow for openings, holidays, or festivals
Marketing, delivery systems, and technology
Targeted funding enables restaurants to grow confidently and enhance guest experience.
Up to $5 million, usable for equipment, renovations, working capital, or real estate
Attractive repayment terms and competitive interest rates
Best for restaurants expanding locations or remodeling
For major assets like real estate or high-cost equipment
Requires partnership with a development entity; offers fixed rates and long repayment
Up to $50,000 via nonprofit lenders
Ideal for startups, pop-ups, or new café installations
May include mentoring and relaxed approval requirements
Key financing routes include:
Equipment loans with monthly payments and the asset as collateral
Leasing for flexible upgrades—e.g., POS systems, stoves, coolers
Financing bundled with installation and maintenance assistance
Great for restaurants needing quick access to essential gear.
Memphis and Knoxville offer business support programs such as:
Local hospitality grant funds for façade or patio upgrades
Small-business mini-grants for entrepreneurs in underserved neighborhoods
Accelerator programs with funding and mentoring for food ventures
These initiatives often include coaching and community exposure.
Community Development Financial Institutions (CDFIs) in Tennessee offer:
Loans ranging from $10,000 up to $250,000
Flexible terms for minority-owned or small, local restaurants
Support services such as credit coaching or business planning
These lenders help restaurants bypass traditional banking requirements.
Restaurants commonly tap into:
Lines of credit for inventory, payroll, or bill coverage
Short-term working capital loans for menu launches or peak periods
Receivables financing or inventory-backed loans to smooth cash flow
These tools support daily operations and seasonal variability.
Specify your goal—equipment, renovation, expansion, or cash flow
Choose a funding path—SBA loan, equipment financing, grant, or CDFI loan
Prepare documents—financials, business plan, vendor quotes
Prequalify with multiple lenders for comparison
Submit a polished application with support materials
Close the loan and deploy funds strategically
Track performance—revenues, costs, staff and customer metrics
| Funding Option | Loan Size | Best For | What to Know |
|---|---|---|---|
| SBA 7(a) | Up to $5M | Location expansion, equipment upgrades | Requires strong financials and credit |
| SBA 504 | Varies | Real estate or major equipment | Fixed rates; involves support partner |
| SBA Microloan | Up to $50K | New cafés, pop-ups, small projects | Includes mentoring and easier approval |
| Equipment Financing | Depends | Kitchen gear, tech, serving tools | Asset-backed; quick access |
| Local Grants | Typically <$25K | Storefront upgrades or marketing | Competitive; may require local commitment |
| CDFI Loans | $10K–$250K | Underserved owners, startups | Mission-driven; supportive terms |
| Line of Credit | Depends | Inventory, payroll, seasonal costs | Revolving; interest only on drawn amounts |
A Memphis food truck crew used:
A $30K SBA microloan to launch kitchen equipment
A $50K CDFI loan to finance their first trailer and outdoor gear
A $25K local grant to support marketing and community pop-ups
Outcome: they opened a brick-and-mortar location within a year, boosted monthly revenue by 60%, and hired three staff members.
Maintain credit scores above 650
Organize two years of financials and tax records
Obtain detailed vendor quotes for planned expenses
Present a clear restaurant plan with projected ROI
Apply with support from local small-business assistance programs
Consider multiple loans to match specific needs
Restaurants in Memphis and Knoxville have access to a range of funding—from SBA and equipment financing to grants and community-directed loans. By identifying your key needs, preparing a solid business plan, and selecting the right mix of funding, you can elevate your brand and grow with confidence.
Clarify your funding objective—equipment, site upgrades, expansion, or cash flow
Select the most appropriate funding route(s)
Compile financials, quotes, and a polished business plan
Prequalify with SBA lenders, CDFIs, and local programs
Submit your applications and deploy funds strategically
If you’d like help choosing the best funding mix or preparing your application materials, I’d be glad to support your restaurant growth in Tennessee!