Breweries
312120
Security National Bank of Omaha (NE)
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First State Bank Nebraska (NE)
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First Bank (NC)
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CommunityAmerica Credit Union (KS)
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California Bank of Commerce, NA (CA)
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Cadence Bank (MS)
SBA Loans for Breweries: Financing Growth in Craft Beer and Brewing Operations
Introduction
Breweries are at the heart of the craft beer revolution, producing everything from small-batch IPAs to large-scale lagers. Classified under NAICS 312120 – Breweries, this sector includes microbreweries, regional breweries, and national beer producers. With growing consumer demand for craft and specialty beverages, breweries face strong opportunities—but also major financial challenges. Equipment, ingredients, distribution, staffing, and marketing require significant investment to remain competitive.
This is where SBA Loans for Breweries can make a huge difference. Backed by the U.S. Small Business Administration, SBA loans provide longer repayment terms, lower down payments, and government-backed guarantees. These loans help brewers purchase equipment, expand taprooms, manage working capital, and stabilize cash flow while scaling operations in a competitive market.
In this article, we’ll explore NAICS 312120, the financial hurdles breweries face, how SBA loans provide solutions, and answers to frequently asked questions from brewery owners.
Industry Overview: NAICS 312120
Breweries (NAICS 312120) include businesses that produce and distribute:
- Craft breweries and microbreweries
- Regional beer producers
- Brewpubs and taprooms
- Large-scale national brewing companies
- Specialty beer makers (organic, seasonal, or experimental)
This industry combines artistry with manufacturing, requiring significant investments in brewing equipment, storage, and distribution networks.
Common Pain Points in Brewery Financing
From Reddit’s r/TheBrewery, r/beer, r/Entrepreneur, and Quora discussions, brewery owners often highlight these challenges:
- High Equipment Costs – Brewing systems, fermentation tanks, and canning lines are capital-intensive.
- Ingredient Costs – Hops, grains, and specialty yeasts are expensive and subject to global supply fluctuations.
- Distribution & Logistics – Getting products to retailers and bars requires vehicles, partnerships, and compliance.
- Taproom Buildouts – Renovating space to attract customers involves construction and design expenses.
- Cash Flow Gaps – Seasonal demand and distributor payment delays often create liquidity issues.
How SBA Loans Help Breweries
SBA financing provides affordable, flexible capital to help breweries expand production, upgrade facilities, and compete in a growing craft beer market.
SBA 7(a) Loan
- Best for: Working capital, payroll, marketing, or refinancing debt.
- Loan size: Up to $5 million.
- Why it helps: Provides liquidity to cover payroll, ingredients, and operational costs between distribution payments.
SBA 504 Loan
- Best for: Facilities and brewing equipment.
- Loan size: Up to $5.5 million.
- Why it helps: Ideal for purchasing brewhouses, fermentation tanks, canning/bottling systems, or expanding taprooms.
SBA Microloans
- Best for: Startup or small-scale breweries.
- Loan size: Up to $50,000.
- Why it helps: Useful for early-stage equipment, branding, and marketing.
SBA Disaster Loans
- Best for: Breweries impacted by natural disasters or emergencies.
- Loan size: Up to $2 million.
- Why it helps: Provides recovery funds for damaged facilities, lost inventory, or emergency expenses.
Step-by-Step Guide to Getting an SBA Loan
- Check Eligibility – Must be a U.S.-based, for-profit brewery with good personal credit (typically 650+).
- Prepare Financial Documents – Include tax returns, P&L statements, supplier contracts, and distribution agreements.
- Find an SBA-Approved Lender – Some lenders specialize in hospitality and beverage financing.
- Submit Application – Provide a business plan highlighting brewing capacity, distribution strategy, and growth projections.
- Underwriting & Approval – SBA guarantees reduce lender risk. Approval usually takes 30–90 days.
FAQ: SBA Loans for Breweries
Why do banks often deny loans to breweries?
Banks may view breweries as risky due to high startup costs, competitive markets, and seasonal demand. SBA guarantees reduce this risk and improve approval chances.
Can SBA loans finance brewing equipment?
Yes. SBA 7(a) and 504 loans can fund brewhouses, fermentation tanks, canning systems, and refrigeration equipment.
What down payment is required?
SBA loans typically require 10–20% down, compared to 25–30% with conventional financing.
Are startup breweries eligible?
Yes. Entrepreneurs with brewing experience, recipes, and strong business plans may qualify for SBA financing.
What repayment terms are available?
- Working capital: Up to 7 years
- Equipment/facilities: Up to 10 years
- Real estate/taprooms: Up to 25 years
Can SBA loans support taproom expansions?
Absolutely. Many breweries use SBA loans to renovate or expand taprooms, increasing customer engagement and direct sales revenue.
Final Thoughts
The Brewery industry is thriving but faces financial hurdles tied to equipment, ingredients, and distribution. SBA Loans for Breweries provide affordable, flexible financing to stabilize cash flow, expand facilities, and compete in the growing craft beer market.
Whether you’re a small microbrewery or an expanding regional beer producer, SBA financing can provide the resources you need. Connect with an SBA-approved lender today and explore your funding options in brewing.
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