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

New Mexico producers: larger loans than the national norm

Beverage makers in New Mexico borrow above the national level under 7(a): the median of $346,750 is 1.39x the nationwide figure, and a typical New Mexico loan of this kind lands somewhere from $117,375 to $813,500. The record holds 26 approvals worth $17.8 million. Franchising is 0.00%. The state ranks 31 among states by loan count, and producers fill slot 10 of 39 in New Mexico's mix. No figure is marked distinctive by our margin. The class covers breweries, wineries and distilleries.

Live Oak, Western Commerce and the Rio Grande counties

Live Oak Banking Company shows 8 loans and $11.4 million, a large sum for few loans, and Western Commerce Bank 6 loans and $1.9 million, as SBA lists current holders. Bernalillo County has 11 loans, Santa Fe 5, Sandoval 3, and Curry, Eddy and Taos 2 each. Approvals were 6 loans and $2.7 million in FY2021, a single loan of $230,000 in FY2022, 4 loans and $5.2 million in FY2025 and 3 loans and $768,100 in FY2026.

With so few loans, neither a cancellation nor a charge-off figure can be printed. The omission is no proof of a clean record.

A New Mexico producer study

The code shows a borrower in the business of beer, wine or spirits and is silent about a taproom, tasting room or events. A study should therefore pull apart distributor sales, direct sales and hospitality, and show the licences each needs. In a state with long distances and tourism around Santa Fe and Taos, visitor flow matters, so test revenue by season. Production capacity and equipment cost decide what can be sold, and the study should test volume against distributor and retail demand. A vineyard or farm adds agricultural risk, including water, which should be addressed explicitly. Loans above the national median may include building purchase and equipment, so the study should say what collateral exists and what a specialised plant is worth if sold. Coverage should hold when taproom income is low. Appraisal of such property reflects the building, the land and the business, and the study should keep them apart.

A ratio of 1.39x to the national median suggests that New Mexico loans often include real estate or larger equipment packages. The study should break out land, building and equipment separately, and show how each is financed, so that a lender can judge collateral and see what a sale of the plant might recover.