Government Shutdown Impacts Craft Breweries

The US government shutdown started December 22, 2018. How is it impacting the craft beer industry?

  • The Alcohol and Tobacco Tax and Trade Bureau (TTB) is closed. That means craft breweries cannot get approval for new beer labels and formulas.
  • Additionally, craft breweries cannot get permits to expand their operations or open a second location.
  • And craft breweries with loans through the Small Business Administration cannot access their funds.

That’s not all. During the shutdown, brewers can access the TTB’s eGovernment applications. But no one will review or approve submissions until the shutdown has ended. And once operations resume, the backlog could take months to get through.

For new breweries, the problem is different. The shutdown has impacted the anticipated timeline for their licenses and approvals, so they may be on the hook for lease payments—for example—without any clear understanding of when they can move forward with the work of opening their brewery.

How Big is the Impact?

According to the Brewers Association, the federal government received 192,000 applications for new lines of wine, spirits and beer, including more than 34,000 for beer, in 2017, At that rate, it’s feasible that thousands of beer labels await review.

For more than 25 years, Beall Financial and Insurance Services, Inc., has been helping corporations and individuals protect their most important assets. The agency’s client base covers a spectrum of niche businesses, such as craft breweries, that require specialized insurance packages and knowledge. With California offices in Redlands and Newport Beach, Beall Financial and Insurance Services serves clients nationwide.