Brewery Financing for Craft Breweries and Taprooms

How breweries are different to finance

A brewery is part manufacturer, part restaurant or bar, and sometimes part distributor. That mix changes how lenders look at it. Production equipment is expensive and specialized, taproom revenue behaves like a bar’s, and distribution revenue depends on wholesalers and shelf space. Lenders who understand breweries look at each revenue stream separately and finance each asset with the right structure.

What breweries finance

• Brewhouse and cellar: brewhouse systems, fermenters, brite tanks, glycol chillers, grain handling
• Packaging: canning lines, bottling lines, keg washers and kegs
• Taproom build-outs: bar, seating, restrooms, patio and kitchen if you serve food
• Production expansion: more tank capacity, a larger building or a second production site
• A second taproom in another neighborhood or town
• Working capital: raw materials, packaging inventory, payroll and distribution ramp-up

Loan types that fit breweries

• Equipment financing. The workhorse for tanks, brewhouses and canning lines. New and quality used brewing equipment both have resale markets, which helps.
• SBA loans. 7(a) for build-outs, equipment and working capital together; 504 for buying or building a production facility.
• Construction and renovation loans for converting industrial space, which often means floor drains, trenching, electrical and ventilation work.
• Commercial real estate loans for buying your building.
• Revenue-based financing and lines of credit for seasonal taproom swings and inventory.
• Expansion loans for a second taproom.

What lenders look at

1. Revenue mix. Taproom vs distribution vs food. Taproom sales usually carry higher margins and lenders like seeing them.
2. Production and sales trends. Barrels produced, distribution accounts and growth over time.
3. Federal and state permits. A TTB Brewer’s Notice and the right state and local licenses, in good standing.
4. Equipment quotes and facility plans. Detailed quotes, installation scope, and whether the building can handle the load and utilities.
5. Financials. Bank statements, tax returns, profit and loss, and a debt schedule.
6. Management and experience. Brewing expertise plus business management.

Licensing in Colorado and Tennessee

Breweries need federal approval from the Alcohol and Tobacco Tax and Trade Bureau (TTB) before producing beer for sale. In Colorado, manufacturer and brew pub licenses run through the state Liquor Enforcement Division together with the local licensing authority, and the license type affects whether you can sell on site, self-distribute or open additional taprooms. In Tennessee, requirements involve the Tennessee Alcoholic Beverage Commission and local beer boards depending on the products and how you sell them. Confirm current rules with the agencies and your attorney before you plan an expansion; lenders will ask how licensing fits your timeline.

Brewing in our two states

Colorado has one of the country’s best-known craft beer scenes. Fort Collins is home to large production breweries alongside small taprooms, Denver hosts the Great American Beer Festival each year, and breweries across Boulder, Longmont, Golden and the mountain towns rely on a mix of locals and visitors. That density means competition for taproom traffic and strong used-equipment markets.

Tennessee’s craft scene has grown steadily, with breweries clustered in Nashville neighborhoods, Chattanooga’s Southside, Knoxville and Memphis, plus taprooms in fast-growing suburbs. Tourism in Nashville, Chattanooga and the Smokies region feeds taproom traffic.

See local pages for Fort Collins, Denver, Longmont, Chattanooga and Knoxville.

Production vs taproom: financing each side

Breweries that expand production and taproom capacity at the same time often stretch themselves thin. Lenders like to see a plan that sequences growth: add tank capacity when existing tanks are consistently full and distribution accounts are asking for more, and add a second taproom when the first one is profitable and its manager can run it without you. Each step has its own financing fit. Tanks and canning lines suit equipment financing; a second taproom suits an expansion loan or SBA 7(a); a larger production building suits SBA 504 or a commercial real estate loan.

Before you apply

Have three months of business bank statements, recent tax returns, a breakdown of taproom, distribution and food revenue, production volumes, your TTB and state license information, and detailed quotes for the equipment or build-out you want to finance.