SBA 7(a) Brewery, Winery and Distillery Feasibility Study in Florida

Florida beverage makers: larger loans and heavy cancellation

Breweries, wineries and distilleries in Florida borrow more than their counterparts elsewhere and walk away from approved loans more often. The 7(a) file lists 76 loans for FY2017 to FY2026 and $45.2 million in gross dollars. Florida's median of $350,000 works out to 1.40x what beverage makers borrow nationwide, while the central half of loans sits between $150,000 to $671,000. Cancellation is the second distinctive measure: 19.4% or more of the FY2017 to FY2024 loans fell through before funding, and 20.9% do if the undisbursed ones are included. Florida is 17th nationally on count, and the class holds 21 of 39 among the state's financed industries. Franchising plays no part: the share of franchised loans is 0.00%.

Where and who

Hillsborough County leads with 15 loans, followed by Pasco with 9 and Duval, Lake and Orange with 5 each, so Tampa Bay and central Florida carry more of the record than Miami-Dade, which has 3. Midwest Regional Bank holds 6 loans and Newtek Bank, National Association holds 5; those are the only holders the table lists, and both are present holders in SBA's data. Annual counts rose from 5 loans in FY2017 to 11 in FY2021, then faded to 4 loans worth $950,000 in FY2025, before 5 loans worth $6.9 million in FY2026.

Charge-off floors

The seasoned beverage cohort holds 34 loans, and its charge-off floor is 5.9% to date and 2.9% within five years. The gap shows losses continued to surface after the fifth year. With so few loans behind it, the pattern could shift as open loans resolve.

Class definition and what a study must test

The class covers beer, wine and spirits makers: the industry code says the borrower produces them, but the data cannot see a taproom, tasting room or event use, and such uses may carry part of the revenue. A study for a Florida producer should therefore separate production from retail and hospitality income, and show licensing under both state and federal alcohol rules. Tanks, stills or presses drive much of the spend, so the study should itemize them along with the building that houses them. Wholesale distribution, self-distribution and tourist traffic each need evidence. Cash flow must cover the payment while the first batches age, since a brewery or winery earns nothing from product that has not yet been sold. Valuation should consider how specialized the building and equipment are.