Brewery, Winery and Distillery Feasibility Study in New York

New York: a deep book of small beverage loans

New York has more SBA lending to breweries, wineries and distilleries than nearly any other state, ranking 2 of 53 for the class, with 251 approvals from FY2017 to FY2026 worth $105.4 million. What separates it, beside both the New York all-asset book and beverage makers nationally, is how small the typical loan is. The median was $161,000, only 0.56x the class median nationwide, with New York's middle half sitting between $64,000 and $422,500. The record shows a book of many small loans rather than a few very large ones. The class carries roughly its national weight in the state, with a location quotient of 1.05x, and ranks 14 of 39 among New York asset classes.

The pace has slowed. New York approvals were 48 in FY2017 and 40 in FY2018, then fell to 11 in FY2022 and 13 in FY2026, so a lender looking at this record is reading a cohort weighted toward the earlier years.

A New York lender list led by one bank

SBA 7(a) carries 222 of the approvals and SBA 504 29. Manufacturers and Traders Trust Company holds 60 loans worth $12.4 million, far ahead of any other holder, followed by Five Star Bank with 27, New York Business Development Corporation with 15 worth $11.7 million, NBT Bank, National Association with 11 and KeyBank National Association with 10. Empire State Certified Development Corporation is the leading 504 holder, with 24 loans worth $20.9 million. The county list is broad: Monroe leads with 21, then Kings at 19, Erie at 17 and Suffolk at 13, with Ontario, Livingston, Steuben and Ulster all in the top ten. None of these producers borrowed as a franchise; that share is 0.00%.

What the floors say, and what a study must test

New York's cancellation floor is 12.9% for approvals dated FY2017 to FY2024, rising to 14.7% once undisbursed loans are included. Charge-offs are few: of 143 New York loans funded across FY2017 to FY2021, 3.5% have gone to charge-off by now, and 1.4% within the first five years. Both figures are floors.

For a New York project, a feasibility study must test whether the market supports the volume the plan assumes, whether distribution or direct sales carry the revenue, and whether the cost of tanks, stills or vineyard work is current. Because the record codes only production, a tasting room, taproom or event use has to be modeled and evidenced separately. The coverage test belongs at the actual New York loan, even when it sits well above the $161,000 median, and the appraisal must address a production property whose buyer pool is narrow. Because wineries sit in this class with brewers and distillers, the New York figures combine wine, beer and spirits.