Loans for Breweries and Distilleries: Investing in Equipment and Expansion

Launching or expanding a brewery or distillery is more than a passion project—it’s a capital-intensive business that requires precision, compliance, and consistency. From fermentation tanks to bottling lines and tasting rooms, the startup and scaling costs can quickly add up. That’s why loans for breweries and distilleries play a crucial role in turning craft beverage dreams into sustainable businesses.

If you’re ready to scale production, improve quality, or enter new markets, this guide covers how to finance the equipment and expansion your business needs.

Why Financing Matters for Craft Breweries and Distilleries

Whether you’re a small-batch gin maker or a regional craft beer brand, growth requires funding. Some of the most common expenses include:

• Fermentation and brewing tanks

• Distillation columns and stills

• Kegging and bottling equipment

• Cold storage and warehousing

• Taproom renovations or expansions

• Licensing, compliance, and legal fees

• Marketing and distribution efforts

Even a modest equipment upgrade or expansion can cost tens or hundreds of thousands of dollars. Strategic financing allows you to grow without exhausting working capital.

Top Loan Options for Breweries and Distilleries

1. SBA 7(a) and 504 Loans

The Small Business Administration (SBA) offers long-term, low-interest loans ideal for breweries or distilleries with a solid business plan.

• SBA 7(a): Up to $5 million for working capital, equipment, or property

• SBA 504: Designed for real estate or large fixed assets like production facilities

• Interest rates: ~7%–9.5%

• Longer approval times but excellent terms

• Learn more at SBA.gov

2. Equipment Financing

Purchasing fermentation tanks, stills, boilers, or packaging machines? Equipment financing allows you to spread the cost over the useful life of the asset.

• Equipment serves as collateral

• Terms typically range from 2 to 7 years

• Fast approval—perfect for urgent upgrades or scaling capacity

3. Business Line of Credit

A revolving credit line offers flexibility for short-term needs like ingredient sourcing, payroll, or event marketing.

• Only pay interest on what you use

• Reusable after repayment

• Best for seasonal fluctuations or recurring cash flow gaps

4. Working Capital Loans

Need funds to hire new staff, boost production before a busy season, or launch a new label? A working capital loan can give you fast, unrestricted funds.

• Shorter repayment periods

• Higher interest rates than SBA, but faster turnaround

• Great for agile, growing brands

5. Local and State Economic Development Loans

Many states and municipalities offer loan programs or grants for manufacturing businesses that boost local economies.

• Ideal for breweries or distilleries opening a new location

• May offer lower interest rates or partial forgiveness

• Check with your state’s economic development agency or CDFIs

6. Crowdfunding or Equity Financing

Popular among craft beverage startups, crowdfunding campaigns (Kickstarter, StartEngine) or private investors can help raise capital for large expansions or product launches.

• Builds brand loyalty

• No repayment if rewards-based

• Must offer compelling value and marketing effort

7-Step Checklist for Financing Your Brewery or Distillery Expansion

1. Calculate your total funding needs (equipment, labor, licensing, marketing)

2. Develop a detailed business and production plan

3. Get quotes for equipment and contractor work

4. Evaluate your credit profile and financial statements

5. Research and compare loan types and lenders

6. Apply with strong documentation

7. Track ROI post-funding to measure the impact on operations and revenue

Case Study: How a Brewery Used Equipment Financing to Triple Production

A craft brewery in Asheville, NC, used $150,000 in equipment financing to purchase larger fermenters, expand their cold storage, and upgrade their canning line. As a result, they increased production by 220% in one year and secured a new distribution deal with a regional grocery chain. Their monthly loan payments were offset by higher revenue and increased operational efficiency.

What to Watch Out For When Financing a Beverage Business

• Over-leveraging: Don’t borrow more than your cash flow can handle

• Underestimating time-to-market: Equipment delays or compliance issues can affect timelines

• Ignoring compliance costs: ABC licensing, safety, and zoning rules vary by state

• Choosing short-term funding for long-term investments: Match loan terms to asset lifespan

Key Resources for Beverage Entrepreneurs

• Brewers Association

• American Craft Spirits Association

• SBA Loan Comparison Tool

• Local Small Business Development Centers (SBDCs)

• RestaurantOwner.com Financial Tools

Conclusion: Raise a Glass to Smart Growth

The craft beverage industry is thriving—but scaling your brewery or distillery takes more than great taste. With the right loan, you can invest in the equipment, space, and team you need to compete, grow, and innovate. Whether it’s expanding capacity or opening a second location, business loans for breweries and distilleries are your recipe for success.