Brewery, Winery and Distillery Feasibility Study in Oklahoma

Craft beverage producers

Oklahoma breweries, wineries and distilleries use SBA credit a little more than the national average, with a location quotient of 1.33x. Inside Oklahoma the class holds position 14 of 39, and the state itself is 25 of 53. From FY2017 to FY2026 there were 44 loans and $15.3 million. The median loan of $251,000 is 0.87x the nationwide level, with most loans between $97,500 and $460,250. The record is small, so these figures describe 44 loans and nothing wider.

Programs and lenders

SBA 7(a) accounts for 38 loans and SBA 504 for 6, and no loan is franchised. The Citizens Bank of Edmond holds 9 loans worth $2.0 million and BancFirst holds 8 worth $2.7 million, and these are the two lenders SBA names with the most loans. Oklahoma County has 20 loans, well ahead of Tulsa County with 7, Logan with 4 and Cleveland with 3. Industry coding records only the production side, so event use and tasting rooms remain invisible.

Cancellation and the unpublished loss rate

The cancellation floor is 7.1% for approvals through FY2024, with 11.9% as the outer bound, a wide gap between the two. No charge-off rate prints for Oklahoma: Loan Analytics' own presentation rule prints no rate for a group under 30 loans, and fewer than 30 were funded between FY2017 and FY2021. Read the gap as missing data, neither a zero nor a spotless record. Both printed rates are floors, since open loans have had time to cancel or default only in part.

What the study should test

A study should separate the production plant from the hospitality room. For production it must test barrel, tank or still capacity, the cost of grain, hops, fruit or botanicals, and the distribution route. For hospitality it must test foot traffic, event bookings and food partnerships. Debt service coverage needs a slow ramp. Equipment is specialised, so the appraisal should show what that equipment would be worth on resale. The scope for this class takes wineries in as well as breweries and distilleries, yet the industry code shows no tasting rooms, so any hospitality revenue must be built from the project itself. A lender reading this page should treat it as context for the questions to ask, since 44 loans cannot stand in for a market.