Franchise financing
SUBWAY franchise financing
What it costs to finance a SUBWAY franchise and how buyers fund it. The real numbers: how much gets borrowed, which lenders fund it, and the track record.
By Mario Bailey · Source: SBA FOIA data, as of 2026-03-31
- SBA loans
- 1,276
- Total funded
- $368.7M
- Median loan
- $195K
- 7(a) charge-off
- 5.7%
What financing a SUBWAY franchise costs
The median SBA loan to a SUBWAY franchisee is $195K, and the middle half of SUBWAY's 1,276 loans run $100K to $320K (average $289K). Across all SBA-financed franchises the median loan is $350K. SUBWAY buyers borrow less than the typical franchisee.
These are loan amounts, not the brand's total startup cost. Buyers also put in equity (the SBA generally wants at least 10% down on a new franchise), and the brand's own investment estimate is Item 7 of its franchise disclosure document (FDD). The median SUBWAY loan runs 10 years. Model your numbers with the franchise financing calculator.
Of the 1,213 SUBWAY loans where the SBA recorded a business age, 28.0% went to new businesses two years old or younger. The rest funded existing operations.
How to finance SUBWAY
SUBWAY franchisees have financed with 1,276 SBA loans since FY2010, averaging $289K each. The 7(a) program is the usual route: it covers the franchise fee, build-out, equipment, and working capital (1,238 of the 1,276 loans). Lenders weigh your credit, management experience, and the brand's track record alongside the equity you bring.
SUBWAY's 7(a) charge-off rate is 5.7% across 1,238 loans, a relative track-record signal lenders and buyers weigh, not a guarantee. See how that compares across franchises.
Lenders that finance SUBWAY
By SBA loan count
Where SUBWAY gets funded
Top states by loan count
- 1. California 135
- 2. Ohio 131
- 3. Indiana 69
- 4. Illinois 72
- 5. Texas 41
- 6. Washington 62
- 7. Michigan 51
- 8. Georgia 40
Financing a SUBWAY?
Get matched with the SBA lenders that actually fund businesses like yours, ranked on real loan data by state, industry, and size. Independent: your details go only to the lenders we match you to, never to data brokers.
SUBWAY SBA financing FAQ
How much does a SUBWAY franchise cost?
The public SBA data shows what buyers actually borrow, not a sticker price: the median SBA loan to a SUBWAY franchisee is $195K, and the middle half of SUBWAY's 1,276 loans run $100K to $320K. Total investment (including the equity you put in, generally 10% or more) is estimated in Item 7 of SUBWAY's franchise disclosure document.
Can you use an SBA loan for SUBWAY?
Yes. Lenders have funded 1,276 SBA loans to SUBWAY franchisees, worth $368.7M in all, so SUBWAY is regularly financed with SBA 7(a) and 504 loans.
Can a first-time owner get an SBA loan for SUBWAY?
The data says yes: of SUBWAY's 1,213 SBA loans that record a business age, 28.0% went to new businesses two years old or younger. Expect the lender to look harder at your experience, business plan, and equity injection.
Which lenders finance SUBWAY?
By loan count, the most active SBA lenders for SUBWAY are The Huntington National Bank, Stearns Bank National Association, Peoples Bank, among others. A lender already active with your brand often moves faster.
What is SUBWAY's SBA charge-off rate?
Across SUBWAY's 1,238 SBA 7(a) loans, 5.7% have charged off. Read it as a relative track-record signal, not a prediction. It is not a lifetime default rate.
Which SBA program fits SUBWAY?
Mostly 7(a): 1,238 of SUBWAY's 1,276 SBA loans. The 7(a) program covers the franchise fee, build-out, equipment, and working capital. The median SUBWAY loan term is 10 years.