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What's Next for Restaurant Business Loans?

New York, USAFriday, February 13, 2026
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The Basics of WBS

  • Definition: Whole business securitizations (WBS) help restaurants secure loans by bundling future earnings.
  • Key Term: Anticipated repayment date (ARD) is the deadline for repayment, usually by obtaining a new loan.

The Refinancing Challenge

  • Upcoming Deadlines: Over $7.9 billion in WBS loans (more than 20% of KBRA-rated loans) will need refinancing in the next few years.
  • Simultaneous Demand: Many restaurants will seek new loans at the same time.

Interest Rates and Impact

  • Rate Increase: Interest rates have risen by 2.3 percentage points since the initial issuance.
  • Debt Service Coverage Ratios (DSCRs): Higher rates may make it harder to meet DSCRs.
  • Positive Outlook: Most restaurants are expected to refinance successfully, with an average coverage ratio of over 2.5x.

Varied Experiences

  • Differing Outcomes: Some restaurants may face more challenges than others, depending on business performance and market conditions.
  • Overall Sentiment: The outlook is mixed but generally positive.

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