How to Get Funding for a Commercial Kitchen Build-Out

Building a commercial kitchen from scratch—or upgrading an existing one—is a major investment. From installing ventilation systems to purchasing cooking equipment, plumbing, and electrical work, costs can range from $50,000 to $250,000+ depending on the size and scope. Fortunately, there are several smart ways to get funding for a commercial kitchen build-out without draining your capital.

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How do I get funding for a commercial kitchen build-out?
You can fund a commercial kitchen build-out through equipment financing, SBA loans, business lines of credit, commercial construction loans, or leasing.

Why Commercial Kitchen Build-Outs Are So Expensive

A full kitchen build-out involves:

• Ventilation and HVAC systems

• Commercial-grade plumbing and electrical

• Fire suppression systems

• Flooring, walls, and drainage

• Equipment installation (ovens, refrigerators, dishwashers, etc.)

• Permits, inspections, and code compliance

This complexity means significant upfront costs—but financing options can make the process manageable.

Related: Financing Equipment for Your Bakery: Mixers, Ovens, and Refrigeration

Top Funding Options for Commercial Kitchen Projects

🛠️ 1. SBA 7(a) or SBA CDC/504 Loans

• Loan amounts up to $5 million

• Ideal for build-outs, renovations, and long-term equipment purchases

• Low interest rates and long repayment terms (up to 25 years)

• Best for well-prepared borrowers with strong business plans

Related: How Equipment Financing Can Boost Your Company’s Cash Flow

🔧 2. Commercial Construction Loans

• Tailored for physical build-outs and renovations

• Funds disbursed in phases based on project milestones

• Requires detailed construction plans, permits, and contractor estimates

• Often backed by collateral or personal guarantees

💼 3. Equipment Financing

• Covers appliances, hoods, ovens, prep tables, refrigeration, and more

• Fixed monthly payments over 2–7 years

• You own the equipment once it’s paid off

• Easier to qualify for than construction loans

✅ Tip: You can combine equipment financing with an SBA loan to cover both build-out and gear.

💳 4. Business Lines of Credit

• Revolving credit you can draw from as needed

• Ideal for covering unexpected costs or delays

• Only pay interest on what you use

• Good for experienced operators with strong credit

🏗️ 5. Leasehold Improvement Loans

• Specifically for tenants who need to renovate leased commercial spaces

• Covers HVAC, plumbing, electrical, flooring, and fixtures

• Works well for shared kitchen spaces, franchises, or new restaurant locations

Cost Breakdown Example

How to Qualify for Kitchen Build-Out Funding

To improve your chances of approval, prepare:

• A detailed project budget and construction timeline

• A signed lease agreement (if renting the space)

• Contractor quotes or bids

• Business plan with financial projections

• Credit history and bank statements

✅ Pro Tip: Some lenders will approve funding before the space is finalized if your documentation is solid.

Summary: 5 Best Ways to Fund a Commercial Kitchen Build-Out

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1. SBA loans (7(a), 504)

2. Commercial construction loans

3. Equipment financing

4. Business lines of credit

5. Leasehold improvement loans

Final Thoughts: Build Your Dream Kitchen Without Breaking the Bank

You don’t have to delay your grand opening or stretch your finances thin. With the right funding strategy, you can design a code-compliant, high-functioning commercial kitchen that supports your vision and long-term success.

Take Action: Start Your Build-Out Funding Process Today

Need capital for a restaurant, bakery, ghost kitchen, or food truck hub?
Compare financing options now and get pre-approved for your commercial kitchen build-out—so you can bring your culinary vision to life.