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.
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.
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
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
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
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.
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
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
| Build-Out Component | Estimated Cost |
|---|---|
| Ventilation & Hood System | $15,000–$30,000 |
| Plumbing & Electrical | $12,000–$25,000 |
| Flooring & Finishes | $8,000–$20,000 |
| Equipment Installation | $20,000–$50,000 |
| Permits & Inspections | $2,000–$10,000 |
| Total Estimate | $57,000–$135,000+ |
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.
(Snippet-Optimized ✅)
SBA loans (7(a), 504)
Commercial construction loans
Equipment financing
Business lines of credit
Leasehold improvement loans
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.
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.