Eligibility Criteria for Liquor Store Loans

Universal Lender Requirements

Credit Score

• Most lenders set a minimum personal credit score threshold
• SBA lenders typically look for 650+ (some require 680+)
• Traditional banks may require 700+
• Online and alternative lenders may work with lower scores but at higher cost of capital
• Business credit history is also reviewed where available

Annual Revenue

• Lenders set minimum revenue thresholds — commonly $100K–$250K+ annually for term loans
• Revenue should be documented through tax returns and bank statements
• Seasonal fluctuations are expected but overall trend should be stable or growing

Time in Business

• Most lenders require at least 1–2 years of operating history
• SBA loans may require 2+ years for certain programs
• Startups face higher barriers and typically need strong business plans and collateral

Cash Flow

• Lenders evaluate whether the business generates sufficient cash flow to service the new debt
• Debt Service Coverage Ratio (DSCR) is commonly used: net operating income divided by total debt obligations
• A DSCR of 1.25 or higher is generally considered acceptable

Financial Statements

• Profit and loss statements (2–3 years)
• Business tax returns (2–3 years)
• Personal tax returns for all owners with 20%+ ownership
• Current balance sheet
• Bank statements (3–6 months)

Liquor-Store-Specific Requirements

Valid Liquor License

• Active, current state retail liquor license is required
• License must cover all intended business activities
• For acquisitions: license must be transferable or approval for new license confirmed

TTB Registration

• Current Alcohol Dealer Registration (Form TTB 5630.5d) required
• Any additional federal permits relevant to the business scope

Compliance History

• Clean regulatory record preferred
• Past violations must be resolved and documented

Collateral and Down Payment

• SBA loans: typically 10–20% down for acquisitions
• Equipment loans: equipment itself often serves as collateral
• Traditional banks may require real estate or other hard assets
• Some online lenders offer unsecured options at higher cost