Funding Your Shared Kitchen with Commercial Lending Partners

So, you’ve got a vision for a shared commercial kitchen—whether it’s a brand-new build, an expansion of your existing space, or launching new programs to support food entrepreneurs. But let’s be real: funding is one of the biggest hurdles. Between securing loans, understanding grant opportunities, and finding the right financial partner, it can be overwhelming.

You might be asking: Where do I even start? Who lends to shared kitchens? Are there programs tailored to me?

The good news? There are funding sources specifically designed for businesses like yours. Whether you need capital for physical buildouts, renovations, equipment purchases, or to fund community-based programs, these lenders and programs can help.

Types of Kitchen Projects You Can Fund

Before diving into lenders, let’s break down some common funding needs:

• Building a New Shared Kitchen – Whether you’re transforming a vacant warehouse or retrofitting an old restaurant space, the upfront costs can be daunting. You’ll need funding for permits, plumbing, ventilation, and kitchen-grade equipment.

• Renovating or Expanding Your Kitchen – Maybe your kitchen is at capacity and needs additional space for storage, more cooking stations, or better efficiency upgrades.

• Purchasing Equipment – From commercial ovens to blast chillers, upgrading equipment can improve operations and attract more users.

• Launching an Incubator Program – If you’re looking to offer structured business training, mentorship, or subsidized kitchen hours to food entrepreneurs, funding can help you build and sustain these programs.

• Operational Support & Working Capital – Many shared kitchens face cash flow challenges, especially in the early stages. Working capital loans can help cover payroll, marketing, and day-to-day expenses while you grow.

Where to Find Funding

The following organizations specialize in lending to food businesses and community-focused projects like shared kitchens:

1. Locus Impact Investing

Locus Impact Investing Locus is a mission-driven lender that invests in projects creating economic equity, supporting local food systems, and improving community well-being. If your kitchen has a social impact—such as serving underserved entrepreneurs, reducing food waste, or improving food access—Locus may be a strong funding partner.

2. Potlikker Capital

Potlikker Capital Potlikker Capital provides financing solutions for food businesses that may not have access to traditional loans. They focus on supporting small farmers, food entrepreneurs, and shared kitchen projects with flexible, low-interest funding options. If your kitchen serves local food makers and fosters community-based food systems, Potlikker Capital could be a valuable resource.

3. Economic Development Administration’s Revolving Loan Fund (RLF)

EDA RLF Program The EDA’s RLF program provides gap funding for businesses that don’t qualify for traditional bank loans. Local RLF lenders often support small businesses driving economic development—like shared kitchens! These loans can help with renovations, equipment purchases, and operational expenses.

4. Community Development Financial Institutions Fund (CDFI Fund)

CDFI Fund CDFIs are mission-driven lenders that serve businesses in underserved communities. Many CDFIs have specific loan programs for food businesses, kitchen incubators, and local food systems. Finding a CDFI in your area can open doors to flexible and affordable financing.

5. Food Lenders Network

Food Lenders Network This network connects food businesses with lenders who understand the unique challenges of the industry. Whether you need startup capital, expansion funding, or working capital, the Food Lenders Network helps match you with potential lenders.

How to Get Started

1. Define Your Funding Needs – Do you need capital for construction, equipment, or operating expenses? Be clear on what you’re looking for.

2. Research Your Options – Explore the lenders above and check their eligibility requirements.

3. Prepare Your Business Plan – Most lenders will want to see financial projections, a business plan, and details on how you’ll generate revenue.

4. Reach Out & Apply – Don’t be afraid to contact these organizations directly and ask questions. They often have advisors who can help you navigate the process.

Learn More About Funding Strategies

For a deeper dive into funding strategies tailored to shared kitchens, check out the Shared Kitchen Toolkit chapter of Funding Strategies. This chapter provides detailed guidance on various funding sources, grant opportunities, financing structures, and practical steps to secure capital. Whether you’re exploring government funding, private lenders, or alternative financing methods, the toolkit is a valuable resource to help you build a sustainable funding plan.

Final Thoughts

Finding the right funding source takes time, but you don’t have to figure it out alone. Shared kitchens are powerful community assets, and there are organizations that want to help you succeed. By tapping into mission-driven lenders, economic development programs, and food-focused financing networks, you can build a kitchen that fuels food entrepreneurs, strengthens your local economy and turns your vision into reality.