Brewery, Winery and Distillery Feasibility Study in Washington

Beverage making in Washington's SBA record

Few states finance as many beverage producers through SBA as Washington does. Its 162 loans, worth $75.2 million over FY2017 to FY2026, put Washington 6 of 53, and at a location quotient of 1.55x, breweries, wineries and distilleries weigh far more heavily in Washington's SBA portfolio than in the nation's. Inside the state the class ranks 12 of 39. The loans themselves are modest: the Washington median is $200,000, or 0.69x the national beverage median, and half of approvals fall between $66,250 and $496,250. This page leads with concentration, geography and a spotless loss floor.

Banks, development companies and counties

Banner Bank and Columbia Bank lead 7(a), with 28 loans for $6.9 million and 26 for $7.0 million, followed by KeyBank National Association at 17 loans and $7.6 million and Washington Trust Bank at 11 and $9.0 million. Harborstone CU's 5 loans total $7.6 million. SBA 7(a) carries 145 loans and SBA 504 carries 17, with Ameritrust CDC holding 7 and Northwest Business Development Association and Evergreen Business Capital 5 each. Franchising is absent at 0.00%. King County holds 45 loans, yet the map reaches well past it: Benton and Whatcom have 13 each, Spokane and Walla Walla 12, Chelan 11 and Klickitat 6.

The outcome floors read well for a lender. Of the 72 producer loans funded in FY2017 to FY2021, the group's charge-off floor is 0.00%, with 0.00% for losses inside the first five years as well. Cancellation after approval is 6.0% of FY2017 to FY2024 approvals, and with the ceiling also at 6.0%, Washington deals in this class tend to close once approved. Both rates are floors, and open loans can still go wrong. Volume varies by year: FY2020 produced only 6 loans for $1.5 million, FY2022 produced 23 for $16.4 million, and FY2026 shows 7 for $1.9 million.

Testing a Washington winery, brewery or distillery

With small loans and a clean record, the main question for a new Washington project is whether its own numbers hold. A feasibility study should test demand in the channels the project will actually sell through, from visitors on site to wholesale and distribution, in the county where it sits, whether that is King or Benton or Walla Walla. Cost testing needs equipment bids and, for a winery, the cost of fruit or vineyard development. Debt service coverage has to allow for product that ages before it can be sold, which can stretch the ramp well past opening, and the appraisal will weigh real estate, equipment and any vineyard land. In Washington the code records only that the business produces beer, wine or spirits. Whether a tasting room, taproom or event venue sits alongside is invisible here, and other manufacturers fall outside the class.