DENVER – Officials with the Obama administration on Monday held an event in Denver to discuss loans to the craft beer industry.
Colorado’s craft beer industry has seen incredible growth over the last few years, allowing the state to remain at the forefront of the industry. With 309 manufacturing brewery and brew pub licenses as of August 2015, the industry has seen 178 percent growth in the number of breweries since the end of the recession in 2009.
Colorado ranks third in the number of breweries, behind California and Washington. The industry recorded total economic benefits of $1.15 billion in 2014 in Colorado, with an estimated 6,021 workers in the state last year.
Doug Kramer, deputy administrator for the U.S. Small Business Administration, said his agency has focused on small-business loans because of the return on investment. The craft beer industry serves as a shining example.
“A huge priority is to make sure that we are working with small businesses. Not only do they end up employing half of all Americans in the private sector, they create two out of every three new jobs. That’s where the real growth in employment happens,” Kramer said, speaking at Ratio Beerworks in Denver, which benefited from the agency’s loan program.
Kramer’s audience included several craft brewery owners who attended the meeting to offer feedback on how the loans have helped and can be improved.
Brewers from Durango did not attend, but at least one Durango brewery has benefited from the agency’s loan program. Ska Brewing Co. was approved for a nearly $1.6 million long-term, low-interest loan, which helped it expand to a new location in Durango.
Sean Avery, who assisted Ska with the loan and attended the meeting on Monday, said the program allows banks to confidently loan to small businesses.
“Whenever a business is looking at an extension like that, it’s risk, and banks don’t like risk,” Avery said. “We’re going to give them the support, ... and it takes away much of the bank’s risk.”
Jason ZumBrunnen, co-founder of Ratio Beerworks, said the loan program was so successful for his business that he is already considering building on it.
“It helped us launch and get all of our equipment in place so we could open on time,” he said. “We’re looking for other financing ways for our next expansion.”
pmarcus@durangoherald.com
