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

Indiana craft beverage makers: small loans and a heavy charge-off floor

Beverage manufacturing, which here means makers of beer, wine and spirits, took 66 loans worth $18.3 million under 7(a) in Indiana across FY2017 to FY2026. The state is 18 among states and the class stands 12 of 39 at home. Median size is $127,450, just 0.51x of the national reading, with the middle of the range from $50,000 to $343,200. Franchising is nil at 0.00%. These are small producers, and the loans likely fund equipment, tanks, build-out or working capital rather than large plants. Marion County has 18 loans, Hamilton and Hendricks 6 each, Allen and Elkhart 4 each.

Outcomes are the notable feature

Of 47 loans funded early, 8.5% show a charge-off so far and the identical 8.5% did within five years, so losses came quickly. Cancellation is low, at just 4.9% of approvals through FY2024 on both readings. In other words, approved projects mostly closed, and some then struggled. Open loans make these minimums.

Holders and years

Only one institution can be named with confidence: The Huntington National Bank, shown against 12 loans worth just $1.1 million. The series opened at 15 loans and $2.9 million in FY2017 and 14 loans and $2.1 million in FY2018, fell to 4 loans in FY2020, rose to 5 loans and $5.1 million in FY2024, and recorded no approvals at all in FY2026.

Limits of the industry code

Classification rests on the borrower producing beer, wine or spirits, and wineries are counted in. Tasting rooms, taprooms and event income are invisible in it, so the study has to lay out the real revenue mix.

An Indiana brewery or distillery study must separate production from hospitality. Barrels or cases sold through distributors, self-distribution and direct sales each carry margins and regulatory limits, and the study should show how much revenue comes from the taproom against packaged sales. Equipment is a large cost and the production capacity should be tied to realistic volume. Federal and state permits, excise taxes and local zoning for on-site sales have to be in order, and the study should say how long they take. Because the early cohort shows losses, coverage should be tested with slower sales. The appraiser will treat tanks and equipment, leasehold improvements and the brand separately. Approval is not implied.