Coffee and Tea Manufacturing
311920
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SBA Loans for Coffee and Tea Manufacturing: Financing Growth in Beverage Production
Introduction
Coffee and tea manufacturers roast, blend, package, and distribute some of the most consumed beverages in the world. Classified under NAICS 311920 – Coffee and Tea Manufacturing, this industry includes businesses that process coffee beans, manufacture tea products, create blends, and package ready-to-drink beverages for retail and wholesale markets. With consumer demand rising for specialty coffee, organic teas, and sustainable sourcing, this sector has strong growth potential. However, businesses face challenges including volatile commodity prices, supply chain disruptions, high equipment costs, and stiff competition from both large corporations and small artisanal brands.
This is where SBA Loans for Coffee and Tea Manufacturers can provide crucial support. Backed by the U.S. Small Business Administration, SBA loans offer longer repayment terms, lower down payments, and government-backed guarantees. These loans help manufacturers invest in roasting and packaging equipment, secure raw materials, expand facilities, and stabilize cash flow in competitive markets.
In this article, we’ll explore NAICS 311920, the financial challenges coffee and tea manufacturers face, how SBA loans provide solutions, and answers to frequently asked questions from beverage entrepreneurs.
Industry Overview: NAICS 311920
Coffee and Tea Manufacturing (NAICS 311920) businesses typically include:
- Coffee roasting and grinding operations
- Tea leaf processing and blending
- Herbal and specialty tea manufacturing
- Ready-to-drink (RTD) tea and coffee beverage production
- Private label and contract manufacturing for retailers
This industry benefits from growing consumer demand but requires significant investment in equipment, packaging, and distribution networks.
Common Pain Points in Coffee and Tea Manufacturing Financing
From Reddit’s r/coffee, r/tea, and Quora discussions, entrepreneurs often highlight these challenges:
- Commodity Price Volatility – Coffee and tea prices fluctuate due to global supply and weather conditions.
- Equipment Costs – Roasters, grinders, packaging systems, and bottling lines require large investments.
- Supply Chain Disruptions – Shipping delays and import restrictions impact raw material availability.
- Competition – Both multinational corporations and small craft roasters/tea blenders compete for market share.
- Cash Flow Cycles – Upfront costs for beans, leaves, and packaging materials often precede revenue from sales contracts.
How SBA Loans Help Coffee and Tea Manufacturers
SBA financing provides affordable, flexible capital that helps beverage manufacturers expand production, strengthen supply chains, and invest in growth.
SBA 7(a) Loan
- Best for: Working capital, payroll, or raw material purchases
- Loan size: Up to $5 million
- Why it helps: Covers supplier payments, packaging, and daily operations
SBA 504 Loan
- Best for: Facilities, roasting equipment, or bottling lines
- Loan size: Up to $5.5 million
- Why it helps: Ideal for long-term investments in production capacity and real estate
SBA Microloans
- Best for: Small or startup coffee and tea brands
- Loan size: Up to $50,000
- Why it helps: Useful for small-scale equipment, marketing campaigns, or launching new blends
SBA Disaster Loans
- Best for: Firms impacted by supply chain issues, natural disasters, or economic downturns
- Loan size: Up to $2 million
- Why it helps: Provides recovery funds for lost revenue, facility repairs, or emergency raw material purchases
Step-by-Step Guide to Getting an SBA Loan
- Check Eligibility – Must be a U.S.-based, for-profit business with good personal credit (typically 650+)
- Prepare Financial Documents – Include tax returns, P&L statements, supplier contracts, and equipment quotes
- Find an SBA-Approved Lender – Some lenders specialize in food and beverage financing
- Submit Application – Provide a business plan highlighting sourcing strategy, market demand, and growth projections
- Underwriting & Approval – SBA guarantees reduce lender risk. Approval usually takes 30–90 days
FAQ: SBA Loans for Coffee and Tea Manufacturing
Why do banks often deny loans to coffee and tea businesses?
Banks may view them as risky due to commodity volatility, competitive pressures, and reliance on imports. SBA guarantees reduce this risk and improve approval chances.
Can SBA loans finance roasting and packaging equipment?
Yes. SBA 7(a) and 504 loans can fund roasters, grinders, packaging machinery, and bottling systems.
What down payment is required?
SBA loans typically require 10–20% down, compared to 25–30% for conventional financing.
Are startup beverage companies eligible?
Yes. Entrepreneurs with sourcing relationships and retail contracts may qualify for SBA microloans or 7(a) financing.
What repayment terms are available?
- Working capital: Up to 7 years
- Equipment/facilities: Up to 10 years
- Real estate/production plants: Up to 25 years
Can SBA loans support sustainable and organic sourcing initiatives?
Absolutely. Many coffee and tea manufacturers use SBA financing to invest in fair-trade sourcing, sustainability certifications, and eco-friendly packaging.
Final Thoughts
The Coffee and Tea Manufacturing industry is a dynamic and growing part of the U.S. food and beverage sector but faces financial hurdles tied to raw materials, equipment, and competition. SBA Loans for Coffee and Tea Manufacturers provide affordable, flexible financing to stabilize operations, scale production, and invest in innovation.
Whether you roast specialty coffee, produce organic teas, or manufacture ready-to-drink beverages, SBA financing can provide the resources you need. Connect with an SBA-approved lender today and explore your funding options under NAICS 311920.
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