SBA 504 Brewery, Winery and Distillery Feasibility Study in Virginia

Virginia producers: fifth in their own state

Beverage makers come fifth of 39 among Virginia's classes under SBA 504, a solid placing for a manufacturing trade, although the state sits at 10 among states by loan count. The record holds 27 approvals worth $24.0 million. The median of $583,000 is 0.94x the nationwide 504 figure, and a normal Virginia producer loan lies between $311,500 and $1.1 million. Franchising is 0.00%. No ratio on the page clears our distinctness margin. This class gathers brewers, winemakers and distillers together.

Two development companies, many small places

Business Finance Group, Inc. holds 12 loans and $11.4 million, and 504 Capital Corporation 11 loans and $8.9 million, each the holder SBA now records. The map is scattered across independent cities and counties: Norfolk City has 3 loans, Alexandria City, Fredericksburg City, James City and New Kent 2 each, and a series of single loans elsewhere. Approvals were 4 loans and $5.9 million in FY2018, 5 loans and $2.0 million in FY2019, a single loan of $1.4 million in FY2021 and 2 loans each year from FY2022 to FY2024 and in FY2026.

Virginia's loans in this class are too few for a published cancellation or charge-off percentage.

Testing a Virginia producer under 504

What the code reveals is just that a borrower brews, ferments or distills; whether the site hosts a tasting room, a taproom or events is not visible, and many producers rely on them. Because 504 finances real estate and fixed equipment, a Virginia project is likely to buy or build a production building, so the study should itemise the property, tanks, stills or presses and the build-out for public areas. It should divide revenue among distributor sales, direct sales and hospitality, and test each against local licences and the distribution rules that apply. Agritourism, weddings and events can add income but depend on zoning and neighbours. Production capacity limits sales, and the study should compare it with demand. Coverage should be shown after the two loan payments together, with a conservative tasting-room assumption. Appraisal will see special-purpose equipment, so the study should state what collateral remains.

A fifth place among Virginia classes suggests lenders in the state have seen many producer files. The study should answer their usual questions at the start: licence status, the distribution plan, the production schedule and the share of income expected from direct sales, supported by a month-by-month forecast.