Webster Bank Closes on $7M Financing Deal

The portfolio financing for a craft beer cooperative includes a partnership with the U.S. Small Business Administration in conjunction with their 504 Program.
Isle Brewers Guild Under Construction
Isle Brewers Guild Under Construction

Webster Bank has arranged a $7.2 million portfolio financing deal for Isle Brewers Guild LLC, a craft beer cooperative located in Pawtucket, R.I., founded by Devin Kelly and Jeremy Duffy. Senior Vice President of Commercial Banking at Webster Anthony Capuano Jr. led the transaction.

Webster Bank has provided $4 million of financing to the Rhode Island Industrial Facilities Corporation in combination with a guarantee from the Rhode Island Industrial Recreational Building Authority by acquiring two bonds, one 25-year series and real estate for about $1.4 million, and a 15-year series of approximately $2.6 million for machinery and equipment to establish a brewing operation.

Webster Bank also partnered with the U.S. Small Business Administration, by accessing their 504 Program, to provide an additional $3.1 million loan. The deal consists of $2.8 million in bridge financing, which will be consequently taken out by a 20-year fixed rate U.S. Government debenture, and a $0.35 million working capital line of credit complemented by an SBA Express Guarantee.

“We are looking forward to continuing to partner with home-grown, emerging, entrepreneurial business, like the Guild, in support of the expansion of local initiatives, by helping to empower them with products and services that will help their businesses grow and prosper,” said Capuano.

Isle Brewers Guild officially opened in March, celebrating the completion of the two-year project alongside Governor Gina Raimondo, Senator Jack Reed and Pawtucket Mayor Donald Grebien. The cooperative was created to deliver additional capacity, efficiency and control to its brewing partners.

Image courtesy of Turgeon Construction via Isle Brewers Guild’s Facebook Page