,990,000, for the 2,203-square-foot structure, equipment, soft costs, and financing expenses. Pro forma and financial feasibility analysis included: Financial Feasibility: Comprehensive financial analysis, including: Pro Forma Financial Statements: Projected income statements, balance sheets, and cash flow statements over a specified period (often 10 years). Discounted Cash Flow Analysis (DCF): Evaluation of the present value of future cash flows to assess the project's profitability. Financial Ratios and Sustainability Analysis: Examination of key financial ratios to determine the financial health and sustainability of the business. Working Capital and Liquidity Analysis: Assessment of the business's ability to meet short-term obligations and maintain sufficient cash flow. Financial Feasibility Table of Contents: Pro forma (10 years)
Discounted Cash Flow Analysis (DCF)Structure of the Assets and LiabilitiesNet Assets (Net Worth)Financial Sustainability AnalysisKey ratios of the company's financial sustainabilityWorking capital analysisLiquidity Analysis Financial PerformanceOverview of the Financial ResultsProfitability RatiosAnalysis of the Business Activity (Turnover Ratios)Labor productivityKey Ratios SummaryRating of the Financial Position and Financial PerformanceBankruptcy TestCalculation of the Final Rating of the Financial Condition
This restaurant feasibility study was prepared in compliance with SBA CFR-2011-Title13 §120.160 and is deemed acceptable for a Federally Related Transaction.
SBA CFR-2011-Title 13 §120.160 outlines the requirements for Small Business Administration (SBA) loan eligibility, specifically focusing on loan purposes, creditworthiness, and feasibility.
The regulation requires that:
- Use of Proceeds: Loan funds must be used for sound business purposes, including purchasing land, buildings, equipment, and working capital.
- Funds may also be used to refinance existing business debt under certain conditions.
- Creditworthiness: The applicant must demonstrate the ability to repay the loan from the business’s earnings.
- A satisfactory credit history, strong financial statements, and sufficient collateral are essential.
- Feasibility: A thorough feasibility study must show that the business project is viable and sustainable.
- The study should include market analysis, revenue projections, and an assessment of competitive conditions.
- Equity Injection: The borrower is required to invest their own equity to reduce risk and demonstrate commitment to the project.
- Collateral: Adequate collateral must be pledged, though SBA loans are primarily cash-flow-based.
- Debt Service Coverage Ratio (DSCR): The projected DSCR should meet SBA's minimum requirements, typically around 1.15x or higher, to ensure the business can cover debt obligations.
The feasibility study must align with these criteria to be considered acceptable for an SBA-backed.
The Team at Wert-Berater, Inc. has over 25-years of experience providing SBA Compliant Feasibility Studies.
Donald Safranek, MSc
President, Wert-Berater, Inc. — independent feasibility study consultants since 1998. More than 4,000 feasibility studies completed across all 50 states and internationally, evaluating $40.2 billion in project value for SBA, USDA, EB-5, conventional, and institutional financing decisions. Fiduciary duty runs to the lender and agency in every engagement.
+1 310-857-2443 ext. 800 · email · 1968 South Coast Hwy, Ste 2382, Laguna Beach, CA 92651 · 111 Town Square Pl Ste 1238 PMB 657834, Jersey City, NJ 07310 · 539 W. Commerce St #8486, Dallas, TX 75208
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