Why CSBFP fits food truck businesses
A food truck is a mobile commercial kitchen — capital equipment in the most literal sense. Whether you are purchasing a new custom-built truck ($80,000–$200,000), a purpose-built food trailer ($30,000–$80,000), or converting a used commercial vehicle, the food truck itself qualifies as equipment under CSBFP’s commercial vehicle and equipment categories.
The commissary kitchen — the licensed commercial kitchen where food is prepped, stored, and the truck is serviced — is the leasehold and equipment counterpart. A food truck operator who opens their own commissary (rather than renting space in a shared kitchen) has a full CSBFP-eligible project: truck as equipment, kitchen as leasehold, commercial cooking equipment for both.
Food truck businesses are often the entry point before a brick-and-mortar restaurant. See the restaurants page for the full restaurant build-out profile when the transition happens.
Eligible CSBFP costs
The food truck or trailer (equipment)
The food truck, food trailer, or food cart is the primary asset:
- Custom-built food trucks (new): A purpose-built food truck on a new commercial chassis (Mercedes Sprinter, Ford Transit, Freightliner stepvan) with a fully equipped commercial kitchen — $80,000–$200,000 depending on equipment spec, generator, and finish level.
- Used food trucks:A professionally converted used commercial vehicle in good operating condition — $30,000–$90,000. The arm’s-length requirement applies: purchase price must reflect fair market value, documented by a commercial vehicle appraisal or comparable market listings for CSBFP applications above $50,000.
- Food trailers:Towable food trailers — more capital-efficient than a self-propelled truck for operators who don’t need mobility between events — $20,000–$70,000 depending on size and equipment.
- Generator: A permanently installed or truck-integrated commercial generator is capital equipment associated with the truck. External generator for trailer operations: $5,000–$15,000.
Commissary kitchen (leasehold and equipment)
Ontario, British Columbia, and most provinces require food truck operators to have a licensed commissary kitchen for food preparation, storage, and truck cleaning. An operator building or improving their own commissary has CSBFP-eligible costs:
- Commercial kitchen leasehold build-out:Converting a leased commercial space into a licensed commissary kitchen — commercial-grade surfaces, floor drains, ventilation hood, make-up air, walk-in refrigerator/freezer, three-compartment sink, and hand-washing stations. A commissary build-out: $40,000–$120,000 depending on scope.
- Commercial cooking equipment: Ranges, ovens, commercial prep equipment, and cooking stations installed in the commissary — $15,000–$60,000.
- Walk-in refrigeration: Walk-in cooler and freezer units — $15,000–$35,000 installed.
- Cold storage and dry storage: Shelving, food-grade storage systems, reach-in refrigeration.
Point-of-sale and technology
- POS systems: A tablet-based POS system with a mobile card reader — $2,000–$8,000 for hardware plus POS software (under the intangibles sub-limit).
- Online ordering platforms: Route and scheduling software, pre-order systems for corporate catering — classified under software/intangibles.
Second truck expansion
An existing food truck operator adding a second vehicle is a natural CSBFP use case. The second truck is equipment. If the existing commissary needs to be expanded to accommodate the additional truck, the expansion is a leasehold improvement. An operator adding a second truck who also needs to upsize their commissary may have a project of $100,000–$250,000, well within CSBFP’s non-RP sub-limit.
What lenders need to see in a food truck file
Food trucks have a revenue model that is straightforward to document but requires specificity:
- Service days per week and per year: How many days does the truck operate? A full-time food truck in an urban market may run 200–250 service days per year. A seasonal or part-time operation runs fewer. Be specific: not "we plan to operate frequently" but "we operate Tuesday–Saturday, approximately 48 weeks/year = 240 service days."
- Revenue per service day: For an existing truck: actual historical revenue per day from POS records or bank deposits. For a new truck: based on a realistic transaction count and average ticket. A food truck doing 100 transactions at $14 average generates $1,400/day. A catering-focused truck at $3,500 average event revenue and 3 events/week generates $10,500/week.
- Location strategy and contracts: Regular lunch spots (office park, construction site, hospital campus), farmers markets with vendor agreements, catering contracts, festival bookings. Written commitments from regular locations or catering clients are strong evidence of revenue stability.
- Operating history (for existing operators):12 months of POS transaction data or bank deposit records showing actual daily revenue. This is the strongest evidence available — actual daily revenue data is better than any projection.
A worked example: food truck with commissary build-out
An operator with 2 years of food truck experience using a rented commissary is purchasing a new custom truck and building their own commissary in a leased commercial space (700 sq ft, 5-year lease with 2 × 5-year renewals):
- New custom-built food truck (30 ft stepvan): $140,000
- Commissary kitchen leasehold build-out: $65,000
- Commercial cooking equipment (commissary): $22,000
- Walk-in refrigerator and freezer: $18,000
- POS system and ordering software: $5,000
- Total: $250,000
Equity injection: $33,000 (approximately 13%). CSBFP loan: $217,000. Software under intangibles ✓. Total non-RP: $250,000 — inside the $500K sub-limit ✓. Lease 5 years + 2 × 5-year renewals = 15 years total confirmed term ✓.
Year 2 projections: 220 service days, $1,800 average service day revenue (mix of lunch service and catering), plus $40,000 in festival and event bookings. Annual revenue: $436,000. After food cost (30%), labour, truck costs, rent, and commissary expenses: EBITDA approximately $118,000. Annual debt service (CSBFP loan at 7.95%, 7-year amortization): approximately $41,200. DSCR: 2.9x ✓.