Loan Options for Breweries and Distilleries

Launching or expanding a brewery or distillery is a dream for many entrepreneurs — but it’s also a capital-intensive business. Between brewing systems, fermentation tanks, bottling equipment, and permits, startup costs can easily exceed $250,000 to $1 million.

The good news? There are financing programs and loans specifically suited for breweries and distilleries that can help fund your production, taproom, and growth — without overwhelming your cash flow.

This guide breaks down the best loan options for breweries and distilleries, how they work, and how to qualify.

Why Breweries and Distilleries Need Specialized Financing

Brewing and distilling require heavy upfront investment in both equipment and real estate. Plus, strict licensing, aging processes, and distribution timelines can delay revenue.

Loans tailored to this industry help business owners:
✅ Purchase or upgrade brewing or distilling equipment
✅ Lease or buy commercial property
✅ Fund working capital during production cycles
✅ Expand taprooms or tasting rooms
✅ Cover licensing, branding, and packaging costs

1. SBA 7(a) Loans – Best Overall for Breweries and Distilleries

The SBA 7(a) Loan Program is one of the most popular and flexible funding solutions for breweries and distilleries.

Program highlights:

• Borrow up to $5 million

• Terms: up to 10 years for equipment, 25 years for real estate

• Interest rates: typically 8%–11%

• Down payment: 10%–20%

Use funds for:

• Brewing or distilling equipment purchases

• Taproom renovations and furniture

• Payroll and operational costs

• Marketing and packaging

Best for: Established craft breweries or distilleries with consistent revenue and growth plans.

Example:
A microbrewery in Colorado uses an SBA 7(a) loan to install new fermentation tanks, expand its taproom, and launch a canning line — all with affordable monthly payments.

2. SBA 504 Loans – For Major Expansion and Property Purchases

If your goal is to buy land, build a new facility, or make large-scale upgrades, an SBA 504 loan offers long-term, low-interest financing.

Structure:

• 50% funded by a bank

• 40% by an SBA Certified Development Company (CDC)

• 10% down payment from the borrower

Benefits:
✅ Fixed low interest rates
✅ Terms up to 25 years
✅ Ideal for breweries/distilleries buying property or expanding production

Example:
A distillery secures a 504 loan to build a larger warehouse for barrel aging — paying only 10% down and financing the rest over 20 years.

3. Equipment Financing – For Brewing and Distilling Systems

Equipment financing allows you to purchase new or used brewing systems, canning lines, fermentation tanks, and bottling machines without paying upfront.

How it works:

• Equipment serves as collateral

• Terms: 2–7 years

• Financing up to 100% of equipment cost

• Fixed monthly payments

Advantages:
✅ Fast approvals (1–3 business days)
✅ Minimal down payment
✅ Tax deductions under Section 179 for equipment purchases

Best for: Small to mid-sized breweries and distilleries upgrading their systems or scaling up production capacity.

Example:
A craft brewery leases $150,000 in new fermenters and keg washers through an equipment financing program — boosting output by 50% while preserving working capital.

4. Business Line of Credit – Manage Seasonal or Production Cash Flow

A business line of credit is essential for handling cash flow gaps caused by seasonal demand or long production cycles.

How it works:

• Get approved for a credit limit (e.g., $100K–$500K)

• Withdraw only what you need

• Pay interest only on what you use

Use funds for:
✅ Raw materials (grain, hops, yeast)
✅ Payroll and utility costs
✅ Short-term operational expenses

Best for: Breweries and distilleries managing fluctuating cash flow between batches or distribution payments.

5. Working Capital Loans – For Short-Term Operating Needs

When you need fast funding to handle day-to-day expenses, a working capital loan can help.

Typical features:

• Funding from $5,000–$500,000

• Terms: 6–24 months

• Fast approval (often within 72 hours)

These loans are great for covering temporary cash flow gaps, restocking supplies, or managing sudden repair costs.

Best for: Smaller craft businesses needing immediate liquidity.

6. USDA Business & Industry Loans – Great for Rural Breweries or Distilleries

If your brewery or distillery is located in a rural area, you may qualify for USDA Business & Industry (B&I) loans.

Program benefits:

• Loans up to $25 million

• Long repayment terms (up to 30 years)

• Competitive interest rates

• Designed to create rural jobs and promote local development

Eligible uses include:

• Equipment, facilities, or real estate

• Working capital

• Refinancing existing debt

Best for: Breweries and distilleries outside major metro areas looking for large-scale, long-term financing.

7. State and Local Grants or Financing Programs

Many states have grant or low-interest loan programs to support craft beverage businesses because they boost tourism and local economies.

Examples:

• New York State Craft Beverage Grant Program

• California Small Business Financing Authority (SBFA)

• Oregon Brewer’s Grant Initiative

• Colorado Office of Economic Development Loans

Tip: Check your state’s Department of Commerce or Agriculture website for regional funding programs that support breweries and distilleries.

Featured Snippet: Loan Options for Breweries and Distilleries

1. SBA 7(a) Loans – Best for general funding and expansion

2. SBA 504 Loans – Ideal for property or facility construction

3. Equipment Financing – For brewing systems and bottling lines

4. Business Line of Credit – Manage cash flow and supplies

5. USDA B&I Loans – Great for rural operations

Example: Craft Brewery Expands With SBA Financing

Business: Riverstone Brewing Co. – Asheville, NC
Loan Type: SBA 7(a)
Amount: $400,000

Riverstone Brewing used its SBA loan to expand its taproom, add outdoor seating, and install a new canning line.

Results:

• Production increased by 45%

• Distribution expanded to three new states

• Revenue grew 60% in the first year post-expansion

Owner’s Quote:

“SBA financing let us scale sustainably without overleveraging. We grew our brand and capacity while staying cash-positive.”

How to Qualify for Brewery or Distillery Loans

Lenders typically look for:
✅ Credit score: 650+
✅ Time in business: 2+ years preferred (startups may need collateral or strong business plans)
✅ Revenue: $150K+ annually or solid projections
✅ Business plan: With detailed financial projections, licensing info, and production goals
✅ Collateral: Equipment, property, or personal guarantees

Tip: Emphasize local partnerships, distribution contracts, and community impact to strengthen your application — lenders like to see long-term sustainability.

Final Thoughts: Brewing Success Through Smart Financing

The craft beverage industry continues to thrive, but growth requires smart financial planning.

Whether you’re launching your first microbrewery, expanding a distillery, or upgrading your canning line, programs like SBA 7(a), 504 loans, and equipment financing can make it happen affordably.

Explore your options at
👉 sba.gov/funding-programs/loans
or connect with lenders that specialize in brewery and distillery financing to find terms that fit your goals.