Brewery loans are the financing craft breweries, brewpubs and taprooms use to buy a brewhouse and tanks, build out a space, buy a building or an existing brewery, and carry inventory and payroll. Most breweries combine equipment financing for the brewing system with an SBA 7(a) or 504 loan for larger projects, and a line of credit for day-to-day swings.
This page is part of our food and beverage lending guide. It covers the loan types that fit brewing, what lenders ask for, and the federal permit and tax rules that affect your timeline and cash flow. If you only need to finance tanks and a brewhouse, see brewery equipment financing.
The market lenders are looking at
Lenders read industry data before they read your plan. The Brewers Association, the trade group for small and independent brewers, counts 9,578 craft breweries in 2025, down 2.9% from 2024: 3,784 taprooms, 3,525 brewpubs, 1,994 microbreweries and 275 regional breweries. In its 2025 year-end report, it reported 300 openings and 481 closings, and a 4% drop in craft production. Brewpub and taproom production fell less than microbrewery production.
For a borrower, that means expect questions about how much of your revenue comes from on-site sales and how realistic any distribution growth is. Closings also put used brewing equipment and existing breweries on the market, which can lower the cost of starting or expanding.
Brewery financing options compared
Figures checked on September 21, 2026. Rates depend on the lender and your finances, so we have not listed a rate range. Compare offers by APR (annual percentage rate), which rolls interest and most fees into one yearly cost, and by total repayment.
| Option | Good for | Key limits | Trade-offs |
|---|---|---|---|
| Equipment financing or leasing | Brewhouse, fermenters, canning line, cooler | Set by the lender; the equipment is the collateral | Down payment; custom or used equipment may be valued lower |
| SBA 7(a) | Start-up build-out, buying a brewery, working capital, equipment | Up to $5 million; up to 10 years, or 25 with real estate | Equity injection; SBA fees; slower process |
| SBA 504 | Buying or building a brewery building; long-life equipment | Up to $5.5 million; 10-, 20- or 25-year terms | No working capital or inventory |
| USDA Business & Industry guarantee | Breweries in rural areas | 85% guarantee under $5 million (fiscal 2026); terms up to 40 years | Rural location required; 3% guarantee fee |
| Business line of credit | Ingredients, packaging, seasonal payroll | Set by the lender | Annual review; may need a track record |
| Short-term working capital loan | Urgent needs when other options are too slow | Set by the lender | Higher cost; frequent payments |
SBA and USDA figures from primary sources
SBA 7(a). The SBA says “the maximum loan amount for a 7(a) loan is $5 million”. Eligible uses include real estate, working capital, machinery and equipment, and changes of ownership, so one loan can fund a taproom build-out plus the brewing system and opening inventory. SBA lender guidance sets maturities of 10 years or less, extended up to 25 years for real estate, and SBA Express loans go up to $500,000.
SBA 504. The 504 program finances buildings, land and “long-term machinery and equipment with a useful remaining life of a minimum of 10 years,” up to $5.5 million. A brewhouse may qualify, but the program can’t be used for working capital or inventory. Since July 4, 2026, borrowers can combine 7(a) and 504 loans for up to $10 million.
USDA Business & Industry (B&I). For a brewery in a rural area, a bank can seek a USDA guarantee. USDA Rural Development says the B&I program serves areas “not in a city or town with a population of more than 50,000 inhabitants.” For fiscal year 2026, applications under $5 million receive an 85% guarantee and those of $5 million or more an 80% guarantee. The maximum term is 40 years, and the initial guarantee fee is 3% of the guaranteed amount.
Equity. Lenders expect you to put in your own money. The SBA has issued SOP 50 10 8.1, effective October 1, 2026, so ask your lender in writing which rules apply to the loan.
Rates. Many lenders quote SBA and bank loans as the prime rate plus a spread. The Federal Reserve reports the bank prime rate was 7.00% on September 17, 2026.
Federal permits and taxes that affect financing
Brewer’s Notice. The Alcohol and Tobacco Tax and Trade Bureau (TTB) requires a Brewer’s Notice before you can start brewing, with diagrams of your premises, and TTB says you must also meet state and local requirements, such as building permits and zoning, before operating. Because you need a site and equipment plan to apply, you will usually be paying rent and loan payments before you sell any beer. TTB reports average processing times for original brewery applications of 46 days in May, 43 days in June and 35 days in July 2026. Build that wait, plus state licensing, into your working capital request.
Brewer’s bond. Most brewers need a bond that guarantees payment of federal excise tax. TTB says brewers are exempt “if you are a TTB-permitted entity owing less than $50,000 in excise taxes in the previous year and expect to owe less than $50,000 in the current year”. Many small breweries fall under that line, which saves the cost of the bond.
Excise tax. For domestic brewers producing 2 million barrels or less a year, TTB lists a federal rate of $3.50 per barrel on the first 60,000 barrels and $16.00 per barrel above that. Include excise tax, and any state beer tax, in the cash flow projections you give a lender.
What lenders look for
- A realistic sales mix. How much you will sell in the taproom or brewpub versus through distributors, and the margin on each.
- Brewing and business experience. Professional brewing experience, plus someone who has run the front of house or a hospitality business.
- The lease or property. Zoning for manufacturing, floor drains, utilities and a lease long enough to recover the build-out.
- Equipment quotes. Itemized quotes for new or used equipment. Lenders may give custom tanks and installation work less collateral value than standard equipment.
- Your equity and credit. Personal credit for owners who guarantee the loan and the source of your cash injection.
Common mistakes
- Underfunding the gap before opening. Build-out delays, permit waits and first batches all come before revenue. Ask for enough working capital to cover several months of fixed costs.
- Oversizing the brewhouse. A system built for distribution volume you haven’t secured adds debt without sales. A phased plan can be easier to finance.
- Financing long-life equipment with short-term money. A daily-payment advance used to buy tanks can squeeze cash for years. Match the loan term to the life of the asset.
- Leaving taxes out of the model. Federal and state excise taxes, and the bond if you need one, belong in your projections.
Related pages
If you are opening a brewpub with a full kitchen, our restaurant business loans guide covers the food side. See also bar loans, winery and vineyard loans and our guide to business lines of credit.
Brewery loan FAQs
Can I get an SBA loan to start a brewery?
Yes. SBA 7(a) loans can fund a start-up’s build-out, equipment and working capital. Expect lenders to want brewing and business experience, a detailed plan and your own equity. The SBA’s equity rules are being revised effective October 1, 2026, so confirm the required amount with your lender.
Do I need my TTB Brewer’s Notice before I get a loan?
Not usually. You need a site and an equipment plan to apply for the Brewer’s Notice, and you often need financing to secure those. Lenders may make funding of some items depend on federal and state licensing, so apply early and keep your lender informed.
Is it better to lease or finance brewing equipment?
It depends on how long you will use it and on your taxes. Financing builds ownership of equipment that may last many years; leasing can lower the upfront cost. Our brewery equipment financing page compares the two.
Can a brewery in a small town use USDA financing?
Possibly. The USDA B&I program guarantees bank loans for businesses in areas outside cities or towns of more than 50,000 people. You apply through a participating lender, not directly with USDA.
Next step
Gather your business plan with sales-mix projections, equipment quotes, the lease or property details and recent bank statements or tax returns. Our food and beverage lending hub explains how SMB Compass helps you compare offers from the lenders we work with.
Sources
- Brewers Association: National beer sales and production data
- Brewers Association: A year of correction for craft beer
- TTB: Requirements for brewery operations
- TTB: Processing times for original permit applications
- TTB: Elimination of bond requirement for small breweries, distilled spirits plants and wineries
- TTB: Tax rates
- SBA: 7(a) loans
- SBA: Types of 7(a) loans
- SBA: 504 loans
- SBA: Small businesses now eligible for $10 million in SBA financing
- SBA Information Notice 5000-880695: Issuance of SOP 50 10 8.1
- USDA Rural Development: Business and Industry guaranteed loan
- Federal Reserve: Selected interest rates (H.15)
About this page. Written by Ezra Cabrera, Content Team Lead at SMB Compass. Figures were checked against the primary sources listed above on September 21, 2026; lenders change their terms, so confirm current terms before you apply, and let us know if you spot a figure that has changed. SMB Compass is a business financing broker: we don’t lend our own money, and we are paid by the lenders we place loans with. This page is general information, not financial, legal or tax advice.