How to Get Funding for Expanding a Wine Tasting Room

Expanding your wine tasting room can transform your vineyard or winery into a more profitable destination. A larger or renovated space allows you to host more visitors, improve the guest experience, and increase wine sales. However, these upgrades often come with significant costs—construction, furniture, décor, and equipment. The good news is, there are multiple funding options to help you finance a wine tasting room expansion.

Why Expand a Wine Tasting Room?

• Boost Visitor Capacity – Welcome larger groups and events.

• Enhance Guest Experience – Add luxury seating, décor, and tasting bars.

• Increase Revenue – More tastings = higher wine sales and memberships.

• Host Events – Weddings, corporate gatherings, and private dinners.

Funding Options for Wine Tasting Room Expansions

1. Equipment and Build-Out Financing

Many lenders offer loans specifically for renovations and equipment purchases. This can include:

• Furniture and fixtures (tables, chairs, wine racks)

• Point-of-sale systems for managing transactions

• Kitchen or catering equipment for food pairings

• Climate control and storage systems

Best For: Wineries that need upfront capital but want fixed monthly payments.

2. SBA Loans

The Small Business Administration (SBA) offers loans with competitive interest rates and longer repayment terms.

• SBA 7(a): Covers construction, furniture, and working capital.

• SBA 504:Designed for real estate and large-scale renovations.

Best For: Vineyards planning significant expansions with real estate improvements.

3. Business Lines of Credit

A revolving credit line provides flexibility for ongoing expenses, such as:

• Décor upgrades

• Seasonal staffing costs

• Marketing and promotions for the expanded tasting room

Best For: Wineries wanting flexible access to cash without committing to a lump-sum loan.

4. Agricultural and Winery-Specific Financing

Some lenders specialize in vineyard and winery financing. These programs often include:

• Seasonal repayment schedules

• Bundled financing for vineyard equipment and tasting room expansions

• Tailored terms for agricultural businesses

5. Grants and Local Incentives

Depending on your location, you may qualify for:

• Tourism Development Grants – Supporting wineries that boost regional tourism

• Historic Preservation Grants – If your winery is located in a historic building

• Sustainability Incentives – For eco-friendly construction and energy-efficient upgrades

Tips for Securing Funding

1. Build a Strong Business Plan – Highlight how expansion increases traffic and sales.

2. Showcase Your Financials – Demonstrate consistent wine sales and visitor growth.

3. Leverage Wine Club Revenue – Use recurring memberships as proof of reliable income.

4. Compare Lenders – Banks, credit unions, and wine industry lenders all offer different terms.

Example Expansion Loan Scenario

• Project: Expanding tasting room by 1,200 sq. ft. with new bar, décor, and furniture

• Cost Estimate: $250,000

• Financing Option: SBA 7(a) loan

• Loan Term: 10 years

• Estimated Monthly Payment: ~$2,750

Final Thoughts

Expanding your wine tasting room is more than just a renovation—it’s an investment in guest experience, brand growth, and long-term revenue. By exploring financing options like SBA loans, winery-specific financing, and local grants, you can make your expansion plans a reality without straining your working capital.