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

Cook County and an unusually high loss floor

Illinois beverage makers, meaning breweries, wineries and distilleries, drew 85 SBA 7(a) approvals over the ten fiscal years, worth $51.9 million, and Cook County alone accounts for 41 of them. Illinois stands 14 among states, and the class stands 14 of 39 on its home list. The median loan of $300,000 is 1.20x of the nationwide figure, and the loans' middle half runs from $101,500 to $803,300. Franchising is nearly absent at 3.5%. The charge-off floor is the figure to read first: 11.6% of the 43 loans funded in the early cohort have been charged off so far, with 2.3% inside five years.

Holders and other counties

The Huntington National Bank holds 9 loans worth $2.4 million. Two names hold 8 loans each: JPMorgan Chase Bank, National Association with $3.1 million, and Live Oak Banking Company with $8.1 million, and Byline Bank holds 7 worth $7.0 million. Dollars per loan differ widely across these names. The list is drawn from SBA's holders and rates no lender. Beyond Cook, DuPage and Kane have 7 loans each, Lake 6 and Will 5, with a tail in Sangamon, Fulton and Peoria.

Timing of losses and cancellations

Because the five-year share is far below the to-date share, most charge-offs appeared late. A floor of 11.6% is steep, and loans still open could push it higher. Cancellation reached at least 14.9% of approvals through FY2024 and the stricter ceiling is the same figure.

What a study for an Illinois producer has to test

A beverage producer's feasibility work has to reconcile production capacity with distribution. For a brewery or distillery that means barrels or tanks per year, the cost of equipment and the time before product can be sold; for a winery, the lag until the first vintage is ready. The study should separate revenue from wholesale, retail and any on-site sales, and must test how much the business depends on one channel. Federal and state licensing, excise obligations and inventory financing all affect cash needs, so working capital belongs in the use of proceeds. Given the early losses, a slow-ramp sales case belongs in the model. The appraisal should value the real estate and equipment separately.

A limit on the data: the code reveals only that a borrower produces drinks. A tap room, a visitor tasting space or an events business cannot be seen, so a hospitality-led project should not lean on these counts.