Transforming Spaces: 100% Financing for Winery & Event Venue Expansion

Introduction

Unlocking growth through strategic SBA execution. Cornovus Capital structured a 100% SBA 7(a) loan to support the expansion of a fast-growing boutique winery and hospitality business in the Midwest. Originally launched by two founders with a passion for artisan winemaking, the business had outgrown its leased location due to rapid growth in retail sales, event bookings, and wine club memberships. The owners needed to acquire a larger, permanent facility to accommodate demand, expand production, and elevate their brand experience—without disrupting cash flow. Cornovus designed a funding solution that enabled a seamless transition and future-proofed the business for scalable growth.

Challenge

Breaking bottlenecks to unlock operational capacity. A rapidly growing wine and hospitality business had reached a critical tipping point. Their leased location lacked visibility, event capacity, and space for equipment or production. As the brand gained regional popularity through a successful wine club, growing wholesale partnerships, and frequent private event requests, space limitations became a roadblock. The company was forced to turn away weddings, tastings, and distribution orders simply because their facility could not support the volume.

The borrower’s goal was to relocate to a freestanding property better suited for high-traffic hospitality operations—without taking on equity partners or straining operational liquidity. Several obstacles stood in the way:

Facility Constraints – Their original strip-center location lacked adequate parking, production flexibility, and private event capacity.
Revenue Suppression – Event bookings, wholesale deals, and tasting traffic were regularly lost due to space and scheduling limitations.
Rapid Growth – With over 320 monthly wine club members and expanding wholesale demand, the current facility could not support further scale.
Need for 100% Financing – The borrower required a capital solution that would cover acquisition, renovation, and working capital without requiring additional equity.
SBA Occupancy Compliance – The adaptive reuse of a former bank building presented a challenge in meeting SBA’s 51% occupancy requirement at funding.

Solution

Engineering a capital structure that preserves cash and unlocks scale. Cornovus Capital delivered a 100% SBA 7(a) financing solution totaling $936,000. The loan covered every aspect of the borrower’s expansion strategy:

Acquisition of a former bank building with strong visibility and parking
Full leasehold improvements to convert the property into a winery, tasting room, and event venue
A construction contingency reserve to mitigate unforeseen buildout costs
Working capital to ensure a smooth operational transition
Full coverage of SBA and closing fees under a single structure
25-year amortization for stability with no equity required

Cornovus also advised the borrower on SBA occupancy planning to meet the 51% rule, ensuring that event and production space would qualify within compliance.

Results

A high-growth business now has the space and capital to scale with confidence. With financing in place, the borrower successfully relocated and launched operations in a larger, owned facility. The upgraded property enabled expanded event bookings, higher production volume, and improved customer experience. Specific financial outcomes included:

$516,000 in 2022 revenue
$600,000+ projected revenue in 2023
$900,000+ projected revenue in 2024

Revenue growth was driven by:

$60,000+ from increased tasting room sales
$60,000+ in wholesale distribution expansion
$85,000+ from private events and weddings
$140,000+ in recurring subscription revenue from a wine club with over 320 members

The business is now positioned as a destination venue in the region—able to host large-scale private events, expand its retail footprint, and grow distribution with confidence.

About Cornovus Capital

With over 60 years of combined experience, Cornovus Capital is a trusted financial partner specializing in business financing, commercial real estate lending, and hospitality funding solutions. We design customized capital strategies that help businesses acquire, expand, and optimize operations, ensuring long-term growth and financial stability.

Our expertise spans SBA 7(a) and 504 loans, CMBS and LifeCo financing, private capital solutions, and structured debt strategies. By focusing on certainty of execution and closing assurance, we guide businesses and investors through complex financial landscapes, securing funding tailored to their long-term objectives.

Why Partner with Cornovus Capital?

At Cornovus Capital, we understand that complex transactions require sophisticated financing solutions. Whether repurposing commercial assets, structuring high-leverage debt, or integrating municipal incentives, we deliver capital strategies designed for certainty and efficiency.

What Sets Us Apart?

Advisory expertise in adaptive reuse, commercial redevelopment, and business acquisitions
We have a strong history of structuring financing for property repositioning, urban infill projects, mixed-use developments, and real estate acquisitions that support business expansion and operational stability.
Innovative capital structuring
Our financing solutions include non-recourse construction loans, Mini-Perm transitions, and TIF-backed capital stacks.
Proven track record across diverse transactions
Over the years, we have facilitated financing for a wide range of businesses, developers, and real estate investors, helping them secure the capital needed to grow and succeed.
End-to-end capital advisory and execution
From initial underwriting to securing financing, we provide comprehensive transaction support to ensure seamless execution and certainty of funding.

Contact Cornovus Capital

For businesses seeking flexible financing solutions to support expansion, acquisition, or working capital needs, Cornovus Capital delivers expertise, efficiency, and certainty.

📧 [email protected]
📞 513-653-4246
🌐 CornovusCapital.com