CFACommercial Funding Advisory

Food & Beverage

Business Funding for Bars and Breweries

Bars and breweries face high startup costs between liquor licenses, brewing equipment, and build-out expenses. A liquor license alone can cost anywhere from $3,000 to over $300,000 depending on the state and type. Breweries carry the added burden of fermenters, brite tanks, canning lines, and raw ingredients that must be purchased well before the beer is sold.

Common Uses

What Bars and Breweries Use Funding For

  • Acquire a liquor license or fund the transfer of an existing license
  • Purchase brewing equipment including fermenters, brite tanks, and glycol chillers
  • Build out a taproom with bar tops, draft systems, and seating areas
  • Cover ingredient costs for seasonal brew runs and new recipe development

Funding Options

Best Funding Types for Bars and Breweries

Equipment Financing

Finance brewing systems, glycol chillers, canning lines, and keg inventories. Brewing equipment retains strong resale value in the craft beer secondary market, so lenders offer favorable collateral-based terms.

SBA 504 Loan

Ideal for purchasing real estate or making major capital improvements to a taproom or brewery facility. SBA 504 loans offer fixed rates and long terms that keep monthly costs low on large buildout projects.

Merchant Cash Advance

Bars process heavy credit card volume, making MCAs easy to qualify for. Use an MCA for short-term needs like seasonal inventory, equipment repairs, or event setup costs.

What Lenders Look For

Qualification Notes for Bars and Breweries

A valid liquor license is mandatory and lenders will verify it before funding anything
Breweries need TTB (Alcohol and Tobacco Tax and Trade Bureau) approval and state brewery permits in good standing
Lenders evaluate your pour cost percentage and average daily sales to determine repayment capacity

Ready to Explore Funding for Your Bars and Brewerie Business?

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