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

Vermont drinks makers sit second in their own state

In Vermont, beverage makers rank 2 of 39 among asset classes, an unusually high place for a manufacturing trade, even though the state sits 20 among states by count for the class. Beer, wine and spirits makers share this one class. The program recorded 54 approvals and $11.6 million over the ten fiscal years. The median loan of $112,500 is 0.45x the nationwide 7(a) level, our test's distinctive metric, so Vermont producers borrow less than half what their national peers do. The middle half runs from $69,375 to $276,250. Franchising is 0.00%, which is as expected for craft producers.

Community National Bank and the small banks

Community National Bank leads the lender table, with 21 loans valued at $4.8 million; National Bank of Middlebury with a count of 6 and a sum of $1.7 million, and SBA CLSC Servicing at 5 loans and $699,900. SBA's table shows who holds or held each loan now, and a servicing entry usually means SBA's own servicing centre, not a bank that chose to lend. Chittenden County has 20 loans; Addison and Franklin 6 each; Washington and Windham 4. Approvals were 11 loans and $1.7 million in FY2017, 10 loans and $2.9 million in FY2020, and then thinned to 1 loan and $225,000 in FY2023, no loans in FY2024, 1 loan and $35,400 in FY2025 and 3 loans and $226,800 in FY2026.

About 4.0% of approvals were cancelled at a minimum, and the ceiling reads the same. Of 41 early loans that have funded and aged, charge-offs so far total 0.00%, with an identical result on the five-year basis. Both are floors and rest on a modest count.

What a Vermont producer study must test

All the code tells us is that the borrower brews, ferments or distills; a taproom, a tasting counter or hosted events leave no trace in the code, although many producers lean on one. A study should therefore split income between wholesale distribution, direct sales and hospitality, since each has different margins and licensing. Production capacity and equipment cost determine how much volume can actually be sold, and the study should test barrel or tank turns against demand. State and federal licensing, local zoning for a tasting room and seasonality in tourism all affect timing. For debt service, the study should show coverage with taproom revenue at a conservative level, since much of it is discretionary spending. The appraisal of a production building covers specialised equipment that may be worth little if sold separately, so the study should say what collateral remains.