Is 2023 the time for you to borrow for your brewery? Inflation is starting to subside, general contractors are becoming more available, and the supply chain is returning to normal, pushing prices back down to more normal levels. A lot of breweries took time over the pandemic and recovery period to refine their vision, implement changes, make the company more efficient, and control costs. Now the question is: what’s next? While some companies are going to stay the same or even downsize, it may make sense for others to make a push to grow.
If you’re looking to grow over the next year, the start of the year might be a good time to get the process rolling. Although rates are not as low as they were, they do seem to be more stable, which will give you a better idea of what payments will be. You’ll also have a clear picture of what your financial situation was last year to ensure you’ve been growing the last few years and have the appropriate margins. More importantly for those that are looking at SBA financing, the SBA is helping by reducing or eliminating the SBA loan fee in FY2023. Through September 30, 2023, the SBA fee for loans $500,000 or less is waived, and the fee for loans $1,000,000 or lower will be 1.05% or less.
If you are wondering if now’s the time to expand, purchase equipment, or purchase real estate, we can help. We would be happy to consult with you and provide an analysis for your specific project.
SBA Loan Fee Reductions
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Guaranty fee—Loans with maturities > 1 year
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FY 22
Through 9/30/2022
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FY 23
Beginning 10/1/2022
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$500,000 or less
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Loans greater than $350,000 – 2.77% of guaranteed portion
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None |
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$500,001 to $700,000
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2.77% of guaranteed portion
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0.55% of guaranteed portion
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$700,001 to $1,000,000
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3.27% of guaranteed portion |
1.05% of guaranteed portion
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$1,000,001 to $5,000,000
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3.5% of guaranteed portion up to $1 MM plus 3.75% of the guaranteed portion over $1 MM
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3.5% of guaranteed portion up to $1 MM plus 3.75% of the guaranteed portion over $1 MM
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Example |
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| Loan Amount |
FY 22
Through 9/30/2022
|
FY 23 Beginning 10/1/2022
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| $650,000 |
$13,790 |
$2,692 |
Net savings to the borrower: $11,098