RR’s Finance & Valuation report is based on survey responses (equally weighted) from 50 finance companies including traditional cash flow lenders, sale leaseback companies, SBA lenders and equipment finance companies and provides an overview of the state of restaurant finance, valuations and cap rates for 2H:20. While 2020 traditional restaurant financing volume of $7.9 billion represented a -24% y/y decrease reflecting diminished financing demand driven by government COVID-19 restrictions, lending is expected to pick back up in 2021.
The SBA remains a very important source of funding for new franchisees, some of whom will become the multi-unit operators of tomorrow. RR’s new SBA Lending Database provides 10 years of data (2010 – 2019) covering 6,930 loans for 41 $1B+ Restaurant Chains.
RR’s Finance & Valuation report is based on survey responses (equally weighted) from 52 finance companies including traditional cash flow franchise lenders, sale leaseback companies, SBA lenders, equipment finance companies and financial consultants/advisors.