SBA Loans for Breweries
Breweries primarily produce alcoholic beverages such as beer, malt liquor, and non-alcoholic beer. These products are made from malted barley and hops. According to IBIS World, the brewery industry generates approximately $6.7 billion in revenue annually. We can also expect revenue and profit margins to grow at a healthy rate in the coming years. This is ideal if you are starting, purchasing, or expanding a brewery. However, doing so often comes with financial challenges for brewery operators. Thankfully, the Small Business Administration offers a variety of loan programs designed to help brewery owners succeed. SBA loans for breweries are an affordable financing option, allowing operators to establish a successful brewery.
When applying for an SBA loan for a brewery, it is crucial to work with an experienced SBA lender. As a professional business appraiser, Peak Business Valuation works with over 80 SBA lenders throughout the country! We are happy to connect you with an experienced brewery SBA lender that can meet your needs. In addition, Peak can provide you with an SBA business valuation as part of the application process. Schedule your free consultation with Peak Business Valuation today!
Benefits of SBA Loans for Breweries
SBA loans for breweries come with many unique benefits. For instance, SBA loans typically feature long repayment terms and low down payments compared to traditional loan options. As such, SBA loans are more affordable for brewery operators. In addition, SBA loans are backed by the Small Business Administration. This means that the SBA will help repay the loan if the borrower is unable to. For this reason, SBA lenders are more likely to approve the loan to qualifying applicants. To learn how to qualify for an SBA loan for a brewery, see Requirements for an SBA Loan.
Buying a Brewery with an SBA Loan
If you are looking to quickly establish a strong customer base and reputation, you may consider buying a brewery. This can come with various expenses such as equipment purchases, closing costs, financing supplies, etc… By purchasing a brewery with an SBA loan, you can cover the cost of the brewery as well as any additional expenses. Additionally, SBA loans typically have low-interest rates, low down payments, and long repayment terms. This makes purchasing a brewery feasible if the transaction exceeds your budget. In addition, buying a brewery with an SBA loan promotes financial flexibility as you establish your business.
SBA 7(a) Loans for Breweries
The SBA 7(a) loan is one of the most common SBA loans for breweries. This loan offers up to $5 million in financing. In addition, the SBA 7(a) loan has a repayment term of up to 10 years. The SBA 7(a) loan can finance a wide variety of brewery needs. This often includes purchasing a brewery, refinancing debt, buying out a partner, etc… As such, the SBA 7(a) loan is ideal if you need to finance any aspect of your brewery. To learn more about receiving an SBA loan for a brewery, see How to Obtain an SBA Loan.
Expanding Breweries with an SBA 504 Loan
If you are looking to expand a brewery, you may consider the SBA 504 loan. This loan provides access to funds that are often difficult to obtain. For instance, expanding a brewery may require purchasing commercial real estate. Brewery owners may use an SBA 504 loan to finance the real estate purchase. In addition, the SBA 504 loan can be used to purchase large or long-term equipment and machinery.
Peak Business Valuation, business appraiser, works with breweries on a regular basis. In addition, Peak works with dozens of SBA lenders throughout the country! We are happy to connect you with a reputable SBA lender that provides SBA loans for breweries! Peak can also provide you with an SBA business valuation or machinery and equipment appraisal. We frequently perform brewery equipment appraisals. Schedule a free consultation with Peak Business Valuation below!
SBA Equipment Loans for Breweries
To operate a brewery, it is important to ensure that you have high-quality brewery machinery and equipment. Some common brewery equipment includes milling equipment, tuns, bright tanks, fermentation tanks, cooling systems, heat exchangers, etc… This equipment and machinery can be very expensive. As such, it may be helpful to finance the equipment purchases with an SBA loan. SBA financing for breweries is more affordable and convenient than conventional financing options.
As part of the SBA application process, SBA lenders often request an equipment appraisal. Peak Business Valuation, business appraiser, frequently values breweries. We are happy to provide you with an equipment appraisal for a brewery you are starting, buying, or expanding! Peak can also answer any questions you have on machinery and equipment appraisals for breweries. Schedule a free consultation with Peak today!
Be sure to also check out our article on Food Processing Equipment Appraisal.
SBA 7(a) Line of Credit for Breweries
Last, the SBA 7(a) line of credit is ideal for breweries that need quick access to funds. This loan program is similar to a home equity loan or a traditional credit card. Qualifying applicants are given a credit limit that they can use and pay off as needed. As such, the SBA 7(a) line of credit can be used to finance various brewery needs. For example, operators can use this loan to finance inventory, working capital, business expansion, equipment upgrades, etc… Each SBA loan comes with a variety of unique benefits. To learn more, schedule a free consultation with Peak Business Valuation, business appraiser!
Conclusion
Starting, buying, or expanding a brewery can be a lucrative endeavor. However, doing so may exceed your budget. As such, the Small Business Administration has many loan programs to make owning a brewery affordable. By obtaining SBA loans for breweries, operators can have financial flexibility and focus on the brewery’s success. To learn more about SBA loans, see SBA Loans or SBA Financing. During the SBA application process, lenders may request an SBA business appraisal. Peak Business Valuation is here to help!
As a professional business appraiser, Peak Business Valuation works with breweries throughout the country. We can provide you with an SBA business valuation and discuss any questions you have on the value of a brewery. Additionally, Peak Business Valuation works with over 80 SBA lenders across the nation. By working with Peak, you can connect with an experienced brewery SBA lender. Start now by scheduling a free consultation with Peak Business Valuation!
