The City of Lancaster Eats: Restaurant Equipment Loan Program supports new and established local restaurants by offering loans of up to $25,000 to assist in acquiring equipment essential to their operations. The program aims to enhance dining options, create synergy within commercial areas, and bolster the local economy by strengthening Lancaster's food and beverage landscape.

What is the Lancaster Eats: Restaurant Equipment Loan Program?

The program offers forgivable loans of up to $25,000 with no interest to qualifying business owners. This financial assistance is designed to cover the costs of purchasing or upgrading restaurant equipment. The loan will be structured in the form of reimbursement for qualifying purchases.

Who is Eligible?

Eligible business owners must:

1. Own or lease property within Lancaster's incorporated city limits;

2. Operate a small, locally owned sit-down restaurant (excluding fast food and fast casual establishments);

3. Purchase qualifying restaurant equipment.

What Type of Equipment Qualifies?

Eligible expenses must be necessary for the operation of the business. Examples of qualified expenses include grills, dishwashers, walk-in refrigerators, deep fryers, draft systems, freezers, ranges, ovens, hoods, sinks, steam tables, salad bars, HVAC systems, etc.

Improvements such as façade enhancements and signage upgrades (subject to City of Lancaster Municipal Code requirements) may also be eligible. 

What is the Loan Structure?

The loan balance will reduce by 50% each year for businesses that remain operational at the qualifying location. After two years of continuous business operation, the loan will be forgiven.

If the business relocates or closes before the two-year threshold, the remaining loan balance must be repaid. 

How Do I Apply?

Click here for the link to the application

*Be prepared to provide copies of receipts for equipment purchased and a current W-9.

Questions or Concerns?

If you have any questions or need additional information, please contact Economic Development Staff at 661-723-6128 or econdev@cityoflancasterca.gov