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

Beverage makers in Wisconsin: no franchises, no charge-offs

Wisconsin's beer, wine and spirits makers borrow in a pattern all their own. From FY2017 to FY2026 SBA approved 120 loans through 7(a), worth $46.2 million, and the state ranks 9 among states by count, with beverage production at 10 of 39 inside Wisconsin. The typical loan is $200,000, a ratio of 0.80x to the 7(a) midpoint nationwide for beverage makers, while the central half covers $100,000 to $495,650. No loan is franchised, at 0.00%, which is unsurprising for an owner-made product. The cell also carries a clean loss record: a charge-off rate of 0.00% to date and again 0.00% at five years across 82 loans of the FY2017 to FY2021 cohort.

Holders and places

Nicolet National Bank leads with 18 loans for $4.5 million. Wisconsin Women's Business Initiative Corporation holds 9 for $1.6 million. Byline Bank holds 5 for $5.0 million, so each of its notes is large; IncredibleBank holds 5 for $2.2 million and Summit CU 5 for $1.6 million. Holders here are those SBA currently records, and nothing in the table speaks to how any lender underwrites. Dane County has 19 of the loans, Milwaukee 16, and Brown and Sheboygan 10 each, with Winnebago at 8, so the activity reaches beyond a single city.

Cancellation and timing

Cancellations after approval are 7.8% on both the floor and the ceiling, so no additional loans sit awaiting disbursement. Dollar volume has been uneven: $11.1 million in FY2018 and $10.9 million in FY2021, but only $595,000 in FY2025 and $325,000 in FY2026. Zero charge-offs are a floor, not a promise, because open loans can still fail.

Reading the beverage code, and what the analysis owes a lender

One limitation shapes every reading. Wisconsin's industry code records only that a borrower produces beer, wine or spirits; whether a public tasting counter or event hall exists on site stays invisible, so loans cannot be divided between production and hospitality. The class was also narrowed from a much broader manufacturing group so that it holds only these beverage makers, wineries among them. A study should therefore say what the project actually is: a production plant sized by barrels or cases, or a venue whose income depends on foot traffic. Production demand rests on distribution agreements and shelf placement, while taproom demand rests on the draw of the location, hours and local competition. Costs need separate lines for fermentation or distillation equipment, packaging, building and licensing, and the payment should be shown covered with an inventory build before sales begin. The appraisal must address special-purpose improvements that a later buyer may not value.