Brewery and Distillery Equipment Financing for Craft Producers

Todd and Allison Graves had been homebrewing for six years before they decided to take the leap into commercial craft production in the Willamette Valley of Oregon. Their concept was solid — a 5-barrel brewpub anchored by seasonal and specialty beers for a local taproom audience, with distribution ambitions if the taproom found its footing. The equipment list alone, before the buildout costs and licensing, came to $340,000.

They financed the equipment package through a combination of SBA 7(a) and a separate equipment lease for the canning line they weren't sure they'd use immediately. The taproom opened on schedule and broke even in month four.

What a Craft Brewery or Distillery Actually Costs

Beverage production equipment is capital-intensive in ways that surprise many first-time producers.

Brewing Equipment

Brewhouse (mash tun, kettle, whirlpool): The brewing system size is measured in barrels. A 5-barrel brewhouse for a small craft operation: $35,000–$85,000. A 15-barrel production system for regional distribution: $120,000–$280,000.

Fermentation tanks: Each tank is a fermentation vessel holding one batch. A production brewery needs multiple fermenters to run continuous batches. Stainless steel jacketed fermentation tanks: $8,000–$18,000 each for a 7-barrel vessel. A 5-fermentor build costs $40,000–$90,000.

Bright tanks/brite tanks: For conditioning, carbonating, and serving beer before packaging. $8,000–$15,000 each.

Glycol chilling system: Cooling for fermentation temperature control. $8,000–$25,000 depending on fermentor count.

A complete 5-barrel brewery system with brewhouse, fermenters, bright tanks, and chilling: $130,000–$250,000 before packaging and ancillary equipment.

Packaging Equipment

Canning lines: A small manual/semi-automatic counter-pressure canning system: $25,000–$60,000. A production rotary canner for volume canning: $80,000–$200,000+.

Bottling lines: Similar price range to canning, with different filling and capping technology.

Kegging systems: Keg washers, fillers, and handling. $15,000–$40,000 for a commercial kegging setup.

Distillery Equipment

Distilling requires different primary equipment — still systems instead of brewhouses:

A copper pot still for small craft distillery use: $25,000–$80,000. A column still with stripper and spirit run capacity for a commercial craft distillery: $80,000–$250,000.

Barrel storage infrastructure, fermentation vessels, and safety/ventilation systems add substantially to the total.

Todd and Allison's complete 5-barrel brewery buildout: $340,000 including brewhouse, fermenters, bright tanks, glycol system, taproom draft infrastructure, and a leased semi-automatic canning system.

SBA Loans for Craft Producers

SBA 7(a) and SBA 504 loans are particularly well-suited to brewery and distillery startups because they can cover:

• Equipment (including all brewing/distilling capital equipment)
• Leasehold improvements (buildout, plumbing, HVAC, drainage)
• Working capital
• Some start-up costs

For a $400,000 beverage production buildout that is 40% equipment and 60% leasehold improvements and working capital, a conventional equipment loan covers the equipment but leaves the rest unfunded. An SBA 7(a) can cover the complete package.

The trade-off: SBA loans take 45–90 days versus 10–21 days for equipment-only financing. Plan accordingly.

OEM Financing From Equipment Suppliers

Many craft beverage equipment manufacturers and distributors offer financing programs through vendor-captive programs or third-party lenders. These programs can be competitive, particularly for brewhouses and fermentation equipment, and are worth getting quotes on.

The critical comparison: don't accept the vendor program without checking independent financing rates. Vendor programs are often designed to facilitate the sale — the rate may or may not be the best available for your profile. Todd's vendor quoted 8.9%; an independent agricultural/industrial lender sourced through a broker offered 7.8% for the same equipment.

Craft Beverage Equipment Financing Rates

| Borrower Profile | Estimated Rate Range | Term Options | |---|---|---| | Existing brewery/distillery expansion, strong history | 7.0% – 9.5% | 48–84 months | | New business with strong founders and business plan | 9.5% – 13.5% | 36–60 months (often SBA) | | Startup with thinner financial profile | 13% – 18% | 36–60 months |

Todd and Allison's $340,000 equipment package at 9% over 72 months (SBA 7(a) structure): approximately $5,640/month. Their taproom reached $68,000/month in beverage and food revenue by month six.

The Canning Line Timing Decision

A smart strategy for breweries uncertain about packaging volume: lease the canning equipment initially on a shorter FMV term. If your taproom grows and distribution demand materializes, you upgrade to production packaging. If demand is slower, you return the semi-auto canning equipment at term end without having committed $80,000 in capital to packaging equipment you weren't ready for.

Todd leased the canning equipment on a 36-month FMV lease — keeping his options open on the packaging side while committing fully to the brewhouse and fermentation infrastructure on a term loan.

Use the lease vs. buy calculator to model the packaging equipment decision. Contact financeorlease.com to discuss the right structure for your brewery or distillery buildout.