Owner George Thornton did this with the aid of flexible financing and dedicated business coaching from CDC Small Business Finance.Īn SBA Microloan secured through CDC helped pay for brewing equipment, mainly large fermentation tanks. The Homebrewer, located in San Diego’s flourishing North Park neighborhood, has evolved from a brew-kit and yeast vendor to adding a small-batch brewery and tasting room, and now to the storefront. The loan, he continued, “allowed us to do what we do best, which is the business of brewing great beer…And the SBA 504 freed us up to do that job, to focus where we need to focus.” The Homebrewer Thrives with SBA Loan and Free Business Coaching “The great thing about the SBA 504 program was that it made financing available to us that wasn’t available to us elsewhere,” said Koch to CDC Small Business Finance in a video interview. Today, the craft beer behemoth employs 1,100-plus employees throughout its operations, which has expanded to other states and even to Europe. Just two years after that SBA 504 loan was funded, Stone reported creating and preserving nearly 70 jobs, thanks in part to that financing. That space later came to be what’s known today as Stone Brewing World Bistro & Gardens. Koch wanted to buy a 57,000-square-foot building in Escondido to grow its brand and secure a stable facility for its operations. That’s when Stone’s co-founder Greg Koch approached CDC Small Business Finance for SBA 504 real estate financing, which requires from borrowers just 10 percent down. About a decade later and an outpouring of critical acclaim, the company continued its ferocious expansion tear with a strategic building purchase. unveiled its signature brew, Arrogant Bastard, to the masses. Stone Brewing Leveraged SBA 504 Real Estate Loan to Expand These craft brewers span the state of California and have come in several shapes, sizes and specialties, from international brand Stone Brewing to up-and-coming brands such as The Homebrewer, based in hipster-laden North Park. They’ve used this type of financing to acquire production facilities, construct buildings, purchase large equipment, buy products and cover working capital needs.ĬDC Small Business Finance, a leading small business lender and nonprofit, has helped its share of craft-beer small businesses launch and expand operations with the aid of more than $30 million in SBA business loans. Over the years, many craft beer entrepreneurs have turned to SBA financing to grow and expand their companies. SBA Financing Boosts San Diego’s Craft Beer Community “Big beer has taken notice of the growth and impact of craft beer,” the study adds. What’s more, the San Diego region continues to lead the nation in the number of craft breweries, with 150, as of last fall’s count. In San Diego County alone, its estimated economic impact has surpassed $1.1 billion, according to a recent study produced by the San Diego Brewers Guild, Cal State San Marcos and the San Diego North Economic Development Council. You know the hop tide has turned when the so-called “ king of beers ” has fallen from its throne while craft beer continues to soak up the market share lost by legacy breweries.Ī niche industry even a decade ago, craft beer is now a $26 billion business nationwide.
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