How to Fund Your Brewery: Best Alternative Financing Solutions

Financing a new brewery—or expanding an existing one—has always required creativity. But in today’s environment, it has become even more challenging. Rising interest rates and tightening lending standards have made traditional bank financing harder to access. Meanwhile, a generational shift is underway: as Baby Boomers retire and begin reallocating an estimated $75 trillion in assets, the structure of capital availability is changing. With a shrinking pool of active investors and a more conservative credit market, breweries need to explore a broader range of funding options.

Private Credit for Breweries

Over the past decade, the financing landscape has expanded, and private credit has emerged as a viable option for breweries.

Private credit refers to loans offered by non-bank lenders such as private funds, direct lenders, or family offices. One of its biggest advantages is flexible underwriting—private lenders often evaluate cash flow or growth potential, not just credit scores or hard collateral. That’s great news for breweries with strong sales but limited fixed assets.

Funding can often be secured in weeks rather than months, especially since you're negotiating directly with the lender. These arrangements may include interest-only periods or revenue-based repayments, giving you breathing room during slower seasons.

Private credit can also be more open to funding initiatives that banks consider "soft," like buying a food truck or building an off-site event space—investments that support growth but don’t involve physical collateral.

Private credit typically comes with higher interest rates than SBA or bank loans, and shorter repayment terms. With less regulatory oversight, lenders may also be quicker to call in loans or enforce defaults. And unlike banks, private lenders usually don’t offer broader relationship benefits like merchant services, credit lines, or business guidance.

Utilizing GoTab Membership and Subscriptions will also help show that you have built in recurring revenue and that you know how to manage customer relationships to help make a project that may seem out of the ordinary into a unique success story.

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Grants and USDA Financing

If you're considering expanding into agricultural elements like a vineyard or using locally grown ingredients, there are funding programs worth exploring.

Many states offer agriculture grants to promote local industry and grow tax revenue. These programs often support equipment purchases, marketing costs, or even the acquisition of plants and soil. The process can take time—one to two years is not uncommon—but the benefits are substantial and long-lasting. Each state has its own programs, often with dedicated staff to help guide you through the application process.

Where state support doesn’t apply, you may still qualify for USDA-backed loans, which offer flexible terms and favorable rates to help you serve your local community while expanding your revenue streams.

These programs are ideal for breweries seeking slow, steady growth that aligns with community development and long-term sustainability.

Crowdfunding for Breweries

Crowdfunding is one of the most modern—and increasingly popular—ways to fund brewery growth. With the rise of social platforms and online communities, crowdfunding is more streamlined than ever. There are two main types, each with different rules and benefits:

Rewards-Based Crowdfunding

In this model, supporters contribute money in exchange for perks—like a custom pint glass, discounted pours, or mug club memberships.

• No SEC filing required
  
  
• No cap on what you can raise
  
  
• Must go through a registered platform (like Kickstarter or Indiegogo)
  
  
• Best suited for breweries with a strong local following or existing customer base
  
  

The key is setting a realistic funding goal aligned with your marketing reach and the value of your offer. Many breweries have raised $50,000 to $100,000 or more using this method.

Using the GoTab Brewery Point-of-Sale can help make your crowdfunding stand out by being able to target potential investors directly and knowing who has bought into the brand. This can easily make crowdfunding a lot easier to market.

Investment-Based Crowdfunding

This model involves offering investors a stake in your business—whether through equity, debt, or revenue sharing.

• Requires SEC registration and must go through an approved portal like WeFunder or Mainvest
  
  
• Allows you to raise up to $5 million in a 12-month period
  
  
• Investors expect financial returns, not just perks
  
  

This approach takes more preparation—especially financial documentation and planning—but gives you access to a wider investor base with potentially larger contributions.

Revenue-Based Financing (RBF)

Revenue-based financing is ideal for breweries with strong, predictable cash flow that want to invest without giving up equity.

There’s no hard credit pull, and repayments are tied to your actual revenue. That means you’ll pay more during busy months and less when things slow down. This model is great for taproom-focused breweries who want to scale production, add a product line, or upgrade equipment with minimal upfront strain.

However, RBF can be more expensive than traditional loans, so it’s best for operations that can confidently maintain solid monthly revenue.

Final Thoughts

As the credit market continues to shift, traditional funding avenues may not be enough—or even accessible. Fortunately, there are many creative financing options available to breweries willing to think strategically and match the right funding tool with their goals

The key is to invest intentionally—whether it's a community-supported crowdfunding campaign, a USDA-backed agricultural expansion, or a short-term private loan that fuels your next phase of growth. Choose the model that fits both your business goals and the community you serve.

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