Food truck loans
Mobile Food Services · NAICS 722330 · Program that usually fits: 7(a) or Microloan
Food truck loans are small. Most owners need $50,000 to $175,000 for a truck or trailer, the kitchen build-out, permits and opening inventory. Lenders treat the truck like any vehicle collateral that loses value fast, so they lean on the owner's experience, credit and cash flow plan. They also want to see where you will park and prep, because most cities require a licensed commissary, and how you will earn on slow weekdays and in winter.
Who qualifies
Owner-operators of food trucks, trailers, carts and mobile catering units. Lenders expect food-service experience, a health department permit or a clear path to one, a commissary agreement and a fire inspection plan for the cooking line. First-time owners can qualify, often through microlenders. Operators with a year or two of sales records, catering contracts or event bookings get better terms and larger loans.
Which SBA program fits
Microloans for first trucks
SBA microlenders lend up to $50,000, often with training, and are the most common route for a first-time owner buying a used truck or trailer.
Express for an established truck
Operators with sales history can use SBA Express for a second truck, a new kitchen line or working capital, with a faster lender decision. Rates run a little higher than standard 7(a).
7(a) for fleets and commissaries
A 7(a) loan funds several trucks, a shared commissary kitchen or the purchase of an existing food truck business on a 10-year term. Real estate for a commissary can carry a longer term.
What borrowers use the money for
- Buying a new or used food truck, trailer or cart
- Kitchen build-out: grills, fryers, refrigeration and hood
- Permits, licenses, commissary deposits and fire inspection costs
- Vehicle wrap, point-of-sale system and generator
- Opening food inventory and working capital for slow months
Typical loan amounts, down payment and terms
A used truck with a working kitchen typically costs $50,000 to $100,000, and a new custom build often runs $100,000 to $175,000 or more. Microloans cap at $50,000, so larger builds use Express or 7(a). Terms usually run 5 to 10 years, shorter for older trucks. Expect to put in at least 10%, and often 15% to 20% as a start-up.
What lenders look at for a food truck
Lenders worry about the truck's value, since a custom kitchen truck can be hard to resell, so they want a quote or appraisal and full insurance. They study your sales plan by day: lunch stops, events, festivals and catering. Commissary costs, permit fees in each city you serve, and fuel and generator expenses all reduce margin. Weather and seasonality matter in colder climates. Your personal credit and savings carry more weight here than in larger loans, because the business itself has little hard collateral.
Example: a $100,000 loan
At today's maximum variable 7(a) rate of 13.00% over 10 years, the payment would be about $1,493 a month. Most well-qualified borrowers get a lower rate. Try your own numbers.
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Get matched with an SBA lender
Answer four questions and see SBA lenders that fit your state, loan size and industry, with your maximum rate. Compare at least two quotes before you sign. Rates move monthly: check current SBA loan rates and the 504 rate.
Today's rate caps
These are the SBA's maximum 7(a) rates with prime at 7.00%. See current SBA loan rates and SBA 504 rates for the full picture.
| Loan amount | Maximum spread | Maximum variable rate today |
|---|---|---|
| $50,000 or less | Prime + 6.5 | 13.50% |
| $50,001 to $250,000 | Prime + 6.0 | 13.00% |
| $250,001 to $350,000 | Prime + 4.5 | 11.50% |
| Over $350,000 | Prime + 3.0 | 10.00% |
Related industries and lenders
SBA lenders active nationwide
Questions about food trucks loans
Can you get an SBA loan for a food truck?
Yes. Food trucks are eligible for SBA microloans, Express and 7(a) loans. First-time owners most often use a microloan of up to $50,000. Operators with a year or more of sales can borrow more through Express or 7(a) for a new truck or a second unit.
How much does it cost to start a food truck?
Many owners spend $75,000 to $200,000 in total, counting the truck, kitchen equipment, wrap, permits, commissary deposits, insurance and opening inventory. A used truck lowers the cost but may need repairs. Lenders want itemized quotes before they approve.
What credit score do I need for a food truck loan?
There is no SBA minimum, but banks generally look for scores around 650 or higher. Microlenders often work with lower scores if you have a solid plan and food-service experience. Recent collections, tax liens or bankruptcies can stop an application regardless of score.
Do I need a down payment for a food truck loan?
Usually yes. Start-ups typically need 10% to 20% of the total project in cash. Some microlenders accept less with a strong plan. Using your own savings shows the lender you share the risk, which matters more on small loans with limited collateral.
Is it better to lease or finance a food truck?
Leasing lowers upfront cost and suits testing a concept, but you build no equity. Financing through an SBA loan costs more upfront and lets you own a resellable asset. Many owners finance once they have a proven menu and steady bookings.
Sources: SBA 7(a) terms, conditions and maximum variable rates; Federal Reserve H.15 selected interest rates (bank prime loan rate); November 2026 SBA 504 debenture pricing, as published by CDCs; SBA FOIA 7(a) and 504 loan-level data.