The wine industry is a growing business in the United States. This can be dated back to the late 1800’ where the industry began to flourish especially in California. It became stagnant when the Prohibition came out in 1920 and alcohol production was banned in the country.
The prohibition was repealed in 1933 but it was too late for many wineries. Many of them were gone and vineyards have long been abandoned. However, the wine industry was revitalized in the 1960s and ushered the modern California wine industry. California wine slowly gained recognition for all over the world.
Today, 90 percent of U.S. wines are produced in California. But all throughout the country, many wineries have also emerged. In fact, almost every state has a winery. Napa Valley, California is famous if its wine production. Takes like Washington, New York, and Texas also has their own resurgence in wine production.
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From Grapes to Wine, What Runs the Business?
Winemaking is considered an art. From planting and growing the grapes to harvesting them, from wine production to bottling, it takes dedicated people who have expert knowledge and the skills. Vintners also need income to finance their expansive, complex operations.
Many banks located in states known to be “wine regions’ have departments specializing in winery financing. What is good about these banks is they have an extensive knowledge of the local wine industry and financing specialists work closely with their clients in the field.
The United States Department of Agriculture (USDA) also supports this industry by providing winemakers access to credit which can be used as capital. The department’s agency responsible for this is the
Farm Service Agency.
The FSA has been supporting individuals involved in agriculture, including the growing of grapes used to make wines. The extensive loan programs include government-guaranteed financing and direct financing. These loan products can be used to start wineries, expand acreage, purchase equipment and build new structures or rehabilitate old ones.
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Winemaking as a Small Business
It is easy for many to think that wineries need to be expansive. Yes, it takes, large acres of land to produce to support a large operation. However, there are also smaller, boutique wineries catering to niche markets.
For these particular vintners, the United States Small Business Administration (SBA) can be a big help when it comes to financing. The SBA can be a source of capital. Over the years, many individuals have sought the SBA’s assistance for winery financing. It offers loans with more lenient terms so that small business entrepreneurs may start their business or further their operations.
The U.S.’s winemaking industry continues to grow. Our vineyards and wineries have continued to produce world-class, award-winning wines. Together with the changes in laws and regulations, and the advancements in the industry, we are looking at a good future for the wine industry that can cater to the local and global market demands. Discover your
winery financing options today!
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