Financial Ingredients for Expansion: How Food & Beverage Businesses Can Tap Incentives and Smarter Financing
From tax-exempt bonds to foreign trade zones, these underused tools can help food and beverage companies expand more efficiently.
Q&A with Alexis Pascual, SVP and Commercial Lending Group Head, First American Bank
MIAMI, Aug. 20, 2025 (GLOBE NEWSWIRE) -- As consumer demand rises and global supply chains shift, food and beverage businesses are under pressure to grow efficiently and smartly. But many companies don’t realize they already qualify for powerful financing tools that could help them scale.
We sat down with Alexis Pascual, Senior Vice President and Commercial Lending Group Head at First American Bank, ahead of his panel at the Americas Food & Beverage Show, to discuss how F&B companies can take advantage of tax incentives, manufacturing classifications, and financing strategies to drive sustainable growth.
Q: A lot of food and beverage companies may not see themselves as manufacturers. Why is that definition so important?
Alexis Pascual: It’s more important than most realize. Many of the new tax incentives and SBA programs are specifically geared toward manufacturers, but the definition of “manufacturer” is actually quite broad. For example, if you’re bottling beverages, repackaging goods, labeling products for resale, or processing raw materials into consumer-ready items – you may qualify. Even companies that import raw materials and export finished products may meet the criteria. We always advise clients: don’t assume you’re excluded. You could be leaving money on the table.
So, what exactly qualifies a business as a manufacturer under these programs?
In general, a company is considered a manufacturer if it:
- Transforms raw materials into a new product
- Produces tangible goods for sale (not services)
- Operates a facility where production is the primary activity
- Derives a majority of revenue from manufacturing-related work
In food and beverage, this includes everything from dairy processing and baking to bottling, canning, and packaging. A surprising number of F&B firms meet these criteria.
What are some of those programs that could benefit F&B processors or packagers?
There are quite a few. One example are the new tax incentives under recent legislation designed to promote U.S.-based manufacturing. These can reduce a company’s tax burden and free up capital for reinvestment. We’re also seeing renewed interest in SBA financing options, which often come with more favorable terms than conventional loans.
Another major opportunity is industrial revenue bonds, which are a form of tax-exempt financing. These can significantly lower the cost of capital for companies expanding or upgrading facilities. In a high-rate environment, saving even 1% or 1.5% on a large CapEx project makes a real difference.
What kinds of incentives are we talking about?
One key example is the Section 199A deduction, made permanent under the new One Big Beautiful Bill Act (OBBB). It offers a temporary 20% deduction on qualified business income for pass-through entities – like LLCs, S-corps, and partnerships – which covers many food and beverage companies.
There’s also bonus depreciation and Section 179 expensing, which allow 100% write-offs of equipment and facility upgrades placed in service after January 2025. For fast-growing businesses, this is a big advantage.
And how do Industrial Revenue Bonds come into play?
Industrial Revenue Bonds (IRBs) are a powerful but often overlooked option. They’re a type of tax-exempt financing available to manufacturers planning to expand facilities, invest in new equipment, or relocate operations. Because the interest is tax-exempt, the borrowing cost is significantly lower than with traditional financing.
Most banks don’t have the expertise or only offer IRBs to very large firms. At First American Bank, we have deep knowledge of this financing type and we work with projects of all sizes. We tailor the structure to the company’s specific needs.
What about companies that import or export food and beverage products?
Import/export firms often face challenges around tariffs and logistics, but there are strategic tools for them too. One is the Foreign Trade Zone (FTZ) designation. FTZs allow companies to reduce, defer, or even eliminate certain duties on imported goods. If you’re using Miami as a hub or as a re-shoring destination, whether you’re bringing goods into the U.S. or exporting to Latin America, this could be a major advantage.
We also advise clients to explore contract manufacturing as a low-cost way to establish a U.S. footprint. Some international firms think building a facility here is too expensive, but partnering with an established contract manufacturer lets them gain the benefits of a U.S. presence without the full cost or risk.
For those exploring U.S.-based production, the SBA recently launched an online portal connecting companies with more than one million verified U.S. manufacturers and suppliers. This tool, part of the agency’s broader push to strengthen domestic supply chains, can be a practical entry point for food and beverage firms looking to re-shore or localize their manufacturing.
What’s First American Bank’s role in helping businesses make these decisions?
Alexis: We’re a relationship-driven bank. Beyond offering financing, we’re proud to help clients understand what’s possible and structure solutions that align with their growth strategy. Whether it’s introducing them to state incentive programs, helping them navigate complex SBA applications, or customizing their bond financing, we’re there every step of the way.
Education is a key part of our role. Many food and beverage businesses don’t realize they may qualify as manufacturers—and miss out on valuable incentives as a result.
“We see many F&B businesses leaving valuable incentives on the table simply because they’re unaware that they qualify as manufacturers. First American Bank does an excellent job educating clients and connecting them with the right programs to fuel growth.”— Jose Esquerdo, CPA, Partner, Carr, Riggs & Ingram.
By uncovering these opportunities, we help clients grow strategically—not just financially.
Curious to learn more about the strategies that can help propel your F&B business forward? Get in touch with First American Bank today.
Disclaimers: This information is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal, tax, and investment advisors.
First American Bank is a Member FDIC.
About First American Bank
First American Bank is the largest privately held bank in Illinois, with over $7 billion in assets and 61 locations across Illinois, Wisconsin, and Florida. Family-owned and operated since the 1960s, the bank offers a full range of financial services, including personal banking, business lending, and trust and wealth management. Known for combining community bank service with large-scale capabilities, First American Bank is committed to long-term relationships, financial stability, and delivering tailored solutions that help customers thrive.
Media Contact:
Teresa Lee
305-631-6400
tlee@firstambank.com
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