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

Virginia beverage makers

Between FY2017 and FY2026 SBA approved 65 loans in Virginia to makers of beer, wine and spirits, worth $36.9 million. Beverage manufacturing is 11th of 39 classes in the state, and Virginia is 19th among states by count. The $225,000 median is 0.90x the national reading, with a middle half of $107,000 to $550,000. Franchising is nearly absent, at 1.5% of loans.

A lender list with two names

Only two holders reach five loans: Manufacturers and Traders Trust Company (7 loans, $1.1 million) and TowneBank (5 loans, $3.0 million). TowneBank's average ticket is several times larger. Loudoun County leads with 7 loans, Richmond City has 5, and Fairfax, Falls Church City, Louisa, Roanoke and Stafford have 3 each, with Chesapeake City, Hanover and Harrisonburg City at 2. The map covers Northern Virginia, the Piedmont and the Shenandoah, so there is precedent in several regional markets.

A front-loaded pipeline and firm floors

Approvals peaked early: 19 loans and $3.5 million in FY2017, then 4 and $3.2 million in FY2021, and 3 loans and $3.6 million in FY2026, so recent loans are fewer but larger. Cancellation after approval is floored at 13.8%, with the same ceiling. For the 37 early loans that funded, SBA shows charge-offs of at least 2.7% to date, with the same 2.7% on the five-year measure. Both are minimums.

What a Virginia study must show

A producer has two businesses: making the product and selling it. The study should therefore test production capacity and equipment cost, the license and compliance path, and the route to market through direct sales, distributors or retail. Tasting rooms and events can drive revenue, but the data does not show them, so the study should model them separately with a visitor count the location can support. Agricultural inputs matter for wineries, and cost per unit and inventory timing affect working capital. Debt service has to be covered before the first batches sell. Equipment, tanks and fit-out need to reconcile with a loan near $225,000. Coding limit: the code shows the borrower makes beer, wine or spirits; taprooms and events are invisible, and all three kinds of producer are counted together.