Independent SBA 504 and 7(a) feasibility studies for California projects — built to SOP 50 10 standards and written for the credit committee that has to approve the loan.
SBA lending does not require a feasibility study on every credit. It becomes a condition when the loan depends on projections rather than history — a start-up, a ground-up development, a change of use, a special-purpose property, or a request large enough that the lender's credit committee wants an independent read on the demand behind the numbers. In California, the request usually reaches the borrower through the lender or the Certified Development Company, and by then it is a closing condition rather than an option.
The reference point is SOP 50 10, the SBA's lender and development company loan program guidance, which frames the independent analysis expected where projections carry the credit. What that means in practice is set out on our SBA feasibility study consultants page.
Either way the study has to demonstrate a market that exists at the price and volume the sponsor assumes, a cost basis that a contractor and an appraiser would recognize, and coverage that holds when the assumptions are stressed — not just in year five.
Hospitality across the coastal and desert resort markets, ambulatory surgery centers, car washes, self-storage, breweries and food manufacturing, and owner-occupied industrial buildings financed under 504 at some of the highest project costs in the country.
Asset class dictates method. A hotel is analyzed on segmented demand and penetration; a car wash on traffic counts, capture and throughput; an assisted-living or surgical facility on service-area demographics, payor mix and licensure; a manufacturing building on contracts, capacity and utilization. We use the benchmark set the underwriter already knows, which is why the reports do not come back for methodology questions.
We build demand from evidence that can be cited: federal series from the Census Bureau, the Bureau of Labor Statistics, CMS, HUD and the Energy Information Administration; California-published sources including transportation counts, licensure and permit records and state agency filings; industry benchmarks such as RMA Annual Statement Studies; and primary work — operator interviews, competitor inspection and site visits. Every material number traces to a source.
Standard delivery is 10 to 15 business days from a complete data room. The fee is fixed, quoted before we start, and never contingent on the finding — a contingent fee would disqualify the independence the lender is relying on. Where the evidence does not support the project as proposed, the report states the conditions under which it would, which is what lets a committee approve subject to conditions instead of declining outright.
Legal disclosure. Wert-Berater, Inc. offices are mailing addresses only. Following the COVID-19 pandemic the firm has elected to work remotely; its office locations receive mail and are not staffed for visitors or in-person meetings. Headquarters mailing address: 1968 South Coast Hwy, Ste 2382, Laguna Beach, CA 92651.
Wert-Berater, Inc. is an independent provider of feasibility studies and other related services. The firm does not provide financing or equity investment advice, and does not arrange, broker, or place debt or equity capital of any kind.
All appraisal assignments are performed by Bruce E. Jones, MAI, ASA-GC, BCA, CMEA, a member of the Appraisal Institute since 2006, a staff member of Wert-Berater, Inc. and owner of Special Purpose Realty Valuation.