Loans for Restaurants in Cambridge and Boston

Opening or expanding a restaurant in Cambridge or Boston comes with unique challenges: high rents, equipment upgrades, seasonal staffing, and delivering a standout experience—all while keeping tight cash flow. Accessing the right funding options—from SBA loans to local grants—is essential for culinary entrepreneurs ready to grow.

This concise guide outlines loan solutions for restaurants in Cambridge and Boston and offers a clear roadmap to secure capital and thrive in these competitive markets.

Why Restaurants in Cambridge & Boston Need Funding

Restaurants commonly need funds to:

• Finance kitchen equipment and POS systems

• Make leasehold improvements or build outdoor dining space

• Hire, train, and retain quality staff

• Cover payroll, seasonal marketing, or soft openings

• Pivot to delivery, catering, or expanded service offerings

🍽 From Harvard Square to the South End, restaurants must invest strategically to deliver great food—and great service.

1. SBA Loans: Flexible Capital for Restaurants

The SBA offers versatile programs ideal for dining businesses.

💼 SBA 7(a) Loan

• Uses: Working capital, equipment, real estate, owner-operator salary

• Loan Size: Up to $5 million

• Terms: Up to 10 years for equipment, 25 years for real estate

• Ideal for: Full-scale renovations or multi-site growth

🏢 SBA 504 Loan

• Uses: Commercial real estate, leasehold improvements, long-term equipment

• Structure: 50% bank + 40% CDC + 10% borrower

• Great for: Buying property or major build-outs

🧾 SBA Microloan

• Uses: Small equipment, signage, inventory, soft opening expenses

• Loan Size: Up to $50,000 via local nonprofit intermediaries

• Perfect for: Pop-ups or second location pilots

2. Local Grants & Food Business Support

Boston and Cambridge have grant programs to support restaurant operators.

🔹 Cambridge Small Business Operations Grant

Supports costs like rent, payroll, equipment, and inventory—funded by COVID-19 recovery ($600,000 pool)

🔹 Boston Space Grants

Provides up to $200,000 to businesses improving vacant commercial spaces, perfect for new dining locations boston.gov

🔹 Re-FRESH Restaurant Relief Fund (Boston)

Provides grants to help restaurants offset post-pandemic costs such as outdoor dining upgrades startcap.org+15baystatebanner.com+15cambridgesavings.com+15

3. Restaurant-Specific Lenders

Some lenders specialize in restaurant funding.

🍽️ Boston Business Lending (Cambridge)

Offers tailored loans for establishment, expansion, or renovation projects 

🏦 Cambridge Savings Bank

A local SBA-preferred lender providing SBA 7(a) and flexible lines of credit up to $10K overdraft protection

4. Fintech & Alternative Lending

When speed matters, these options can help:

• Nonbank SBA Lenders & Marketplaces – Faster applications for SBA 7(a) loans, now allowed for fintechs 

• Fintech Business Loans – Quick capital via platforms like StartCap, with rates roughly 6–13% 

• Merchant Cash Advances & Invoice Factoring – Suitable for urgent needs, but higher costs

5. Featured Snippet: 7-Step Loan Process

1. Define your funding goal: build-out, equipment, payroll

2. Pick loan type: SBA 7(a), 504, Microloan

3. Gather documents: financials, plan, vendor quotes

4. Find an SBA lender or local business lender

5. Submit application and documentation

6. Complete underwriting and agree on terms

7. Close, receive funding, and execute your plan

6. Pros & Cons of Each Option

7. Real Example: Harvard Square Café Expansion

Project: Adding 800 sq ft patio and renovating kitchen
Funding Mix:

• $200K SBA 7(a) loan via Cambridge Savings Bank

• $40K Cambridge grant for outdoor infrastructure

• $30K equipment microloan for HVAC and POS
  Outcome: Patio open by summer; revenue up 35%; operations more efficient

8. Tips to Improve Your Approval Chances

• Maintain credit scores around 650+

• Keep 2+ years of clean financials and clear P&L

• Get detailed quotes for contractors and equipment

• Use a qualified mentor or consulting service

• Compare multiple lenders for rates and fees

• Apply for local grants early and prepare strong narratives

9. Local Advice & Resources

• Cambridge & Boston Economic Development Offices – for grants and business support

• SBA Massachusetts District Office – loan counseling and lender matches 

• Small Business Development Centers (SBDC) – help with documentation and funding strategy

• SCORE Boston – free mentoring and loan prep assistance

10. Final Takeaway

Restaurant owners in Cambridge and Boston face unique pressures—from high-cost spaces to evolving dining trends. By combining SBA loans, local grants, and specialized lending—with careful planning and expert support—you can secure the funds needed to grow your restaurant and succeed.

✅ Next Steps:

1. Define your project and funding amount

2. Choose suitable SBA product or local loan

3. Gather required documents and quotes

4. Apply to SBA lender + local bank

5. Pursue grants for build-outs or outdoor space

6. Partner with local advisor to strengthen your plan

Unlock the funding you need to serve Boston-area diners with excellence!