SBA‑Compliant Feasibility Studies (SOP 50 10)

​Independent. Underwriting‑driven. Built for fiduciary review.

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Wert‑Berater prepares SBA‑compliant feasibility studies for SBA 7(a) and SBA 504 loans that are designed to support lender credit committee review and SBA underwriting scrutiny. Our work is not promotional and not borrower‑advocacy. It is structured for fiduciary review.

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Why SBA Requests a Feasibility Study

SBA and SBA lenders request feasibility studies when a project presents elevated or non‑standard risk, including:

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• Market saturation or limited demand history

• Unique or specialized business concepts

• Projects outsized relative to the local market

• Rapid growth combined with new or increased debt

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In these cases, SBA requires independent third‑party analysis to support underwriting decisions.

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Independence Is Not Optional

SBA feasibility studies must be independent and objective.

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Wert‑Berater has no financial interest in loan approval, project success, construction, brokerage, or ownership. Our fiduciary responsibility is to the lender and the SBA, not to shaping outcomes.

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This independence is the foundation of SBA compliance and supports clear, disciplined underwriting review.

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What SBA Expects From Financial Feasibility

SBA‑compliant financial feasibility is not a borrower pro forma. It is an underwriting analysis focused on repayment ability and sustainability.

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Our financial sections are built to demonstrate:

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• Cash flow available for debt service

• Minimum debt service coverage (DSCR)

• Reasonable, supportable assumptions

• Alignment with industry benchmarks

• Clear explanation of risks and constraints

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If projections are required, they must be documented, supported, and defensible under review.

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Why Borrower Pro Formas Cannot Be Used for SBA Feasibility

Borrower-prepared pro formas are management planning documents. SBA feasibility studies are underwriting analyses. The two serve different purposes and are evaluated under different standards.

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SBA underwriting guidance requires lenders and their agents to independently assess repayment ability using reasonable, supportable assumptions. As a result, borrower projections cannot be adopted as-is for feasibility or credit analysis. Doing so would undermine objectivity and introduce bias into the underwriting process.

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For SBA feasibility, financial projections must be:

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• Independently constructed

• Based on verifiable industry data and benchmarks

• Supported by external sources rather than borrower preference

• Consistent with prudent lending and credit standards

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Accordingly, Wert-Berater develops financial feasibility using industry-recognized data sources, including RMA financial ratios, sector-specific benchmarks, historical performance (when available), and market-supported operating assumptions.

 

These inputs allow lenders and SBA reviewers to evaluate repayment capacity, margins, and risk using standards they recognize and rely upon.

 

Borrower financial models are reviewed carefully to understand the proposed business plan and management intent. However, the feasibility pro forma used for SBA underwriting is reconstructed independently to align with SBA guidance, industry norms, and fiduciary expectations.

 

Differences between borrower projections and feasibility projections are documented and explained as part of a disciplined underwriting narrative.

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What Our SBA Feasibility Studies Include

Each engagement is project‑specific, but typically addresses:

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• Market feasibility – demand, competition, saturation risk

• Project and site feasibility – scale, access, execution constraints

• Management feasibility – experience, operating capacity, key‑person risk

• Financial feasibility – DSCR, ratios, repayment logic, projections

• Risk framing – downside considerations relevant to underwriting

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Everything is written for lender and SBA review — not marketing use.

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Who We Work With

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• SBA 7(a) borrowers and lenders

• SBA 504 borrowers, banks, and CDCs

• Startups, expansions, acquisitions, and special‑purpose facilities

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If your project is complex enough to require feasibility, it must be done correctly.

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The Wert‑Berater Difference

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• Over 1,000 SBA‑underwritten feasibility studies completed

• Zero SBA rejections attributable to feasibility methodology

• Direct alignment with SBA SOP 50 10 requirements

• Reports written to reduce underwriting friction

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This is why lenders rely on our work.

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Engagement Structure & Fees

SBA Feasibility Study engagements are typically structured on a fixed-fee basis, consistent with lender and agency underwriting requirements.

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Typical fee range:
$7,000 – $20,000, depending on:

• Project size, scope, and overall complexity

• Level of market, demographic, and competitive analysis required for SBA review

• Depth of financial modeling, including SBA-compliant projections and sensitivity analysis

• Capital structure, debt layering, and ownership considerations

• Number of scenarios, lender iterations, and revisions required during underwriting

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All SBA feasibility studies are prepared to meet or exceed SBA 7(a) and 504 program standards and are suitable for lender submission, third-party review, and regulatory scrutiny.

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Next Steps

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If you need an SBA feasibility study that is independent, underwriting‑focused, and compliant, let’s discuss your project.

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Request a Proposal