Ep #41: SBA Now: Restaurant Lending with Loan Officer Scott Cisneros

ptotah
1 day ago
2 min read

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Securing an SBA loan for a restaurant isn't easy. Banks understand the risks involved, especially given the high failure rate of restaurants. In this episode, we sit down with Scott Cisneros, a senior loan officer at City National Bank, who specializes in SBA 7a loans for restaurant acquisitions. With decades of lending experience and a reputation for straightforward advice, Scott is a trusted resource for brokers and buyers navigating restaurant financing.

Scott explains why most banks prefer SBA financing for business acquisitions. Banks have to be meticulous in their process to ensure the loan meets all requirements. If a business fails, the SBA will thoroughly review every aspect of the loan. This thoroughness means that when Scott issues a conditional funding letter, there’s a very high chance that deal will be funded.

We dive into why experience matters in the application process, how seller financing can impact the deal, and why smaller SBA loans are significantly more challenging to secure than larger ones. We also explore the current lending landscape, including why recent years have been among the toughest, and what to expect as interest rates continue to change.

If you’re considering selling your business and would like a free consultation, reach out to patrickAndAndy@therestaurantsalesbroker.com or visit TheRestaurantSalesBroker.com to learn more.

What You’ll Learn from this Episode:

Why banks prefer SBA financing for restaurant acquisitions.
How pre-qualification focuses on the business rather than just the borrower.
The critical role experience plays and why industry experience matters more for larger loans.
How seller financing affects debt service coverage and deal structure.
The typical timeline from application to funding for straightforward acquisitions.
Why smaller SBA loans are significantly harder to obtain than larger ones.

Listen to the Full Episode:

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Scott Cisneros: scott.cisneros@cnb.com | 916-765-9443