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.
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.
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
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
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
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
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
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
Calculate your total funding needs (equipment, labor, licensing, marketing)
Develop a detailed business and production plan
Get quotes for equipment and contractor work
Evaluate your credit profile and financial statements
Research and compare loan types and lenders
Apply with strong documentation
Track ROI post-funding to measure the impact on operations and revenue
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.
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
SBA Loan Comparison Tool
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.