1998Practice founded4,000+Client engagements$41.2 billionEvaluated project valueSince 1982Institutional underwritingMAI · ASA-GC · BCA · CMEAIn-house valuation designations
Wert-Berater, Inc. — Independent Feasibility Study Consultants
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How Much Does a Feasibility Study Cost?

The honest answer is structural, not a price list: what drives the fee, what the fee buys, and why the cheapest study is routinely the most expensive document in the loan file.

Watch: a short video overview — How Much Does a Feasibility Study Cost?

What Actually Drives the Cost of a Feasibility Study

Feasibility study fees are not a price list; they scale with the analytical work the financing demands. Four structural drivers account for nearly all of the variation. First, the lending program: SBA SOP 50 10 8 and USDA 7 CFR Part 5001 each prescribe specific factors the study must address — the USDA framework alone enumerates 37 factors across five feasibility dimensions — and program-compliant treatment takes more analyst time than a conventional-lending scope. Second, the asset class: a single-tenant retail building and a sugar refinery restoration are not the same assignment; processing facilities, multi-component projects, and special-purpose properties require deeper technical and market work. Third, the capital structure: layered stacks combining senior debt, guaranteed debt, grants, and multi-entity equity demand reconciliation work that a single-loan project does not. Fourth, data availability: a project with complete plans, budgets, and third-party reports moves faster than one where the analyst must build the record.

A Useful Way to Frame the Investment

Across the 4,000+ engagements Wert-Berater has completed since 1998 — $41.2 billion in evaluated project value — the study fee has typically represented a small fraction of one percent of total project cost, while the document determines whether the remaining ninety-nine-plus percent gets funded. A study rejected by an underwriter for inadequate scope costs far more than the difference between a compliant study and a template: the lost loan-cycle time alone, commonly measured in months, exceeds any fee differential. Lenders see this asymmetry clearly. In the firm’s experience the borrower most often engages directly — banks, lenders, and CDCs apply differing rules on who must initiate, and lender confirmation is obtained before work begins in every case — which keeps the engagement inside the reliance framework rather than shopped on price.

How Wert-Berater quotes. Each engagement is quoted individually after a brief qualification call covering program, asset class, capital structure, and data readiness. A four-field fee-quote request is available at wert-berater.com — Request a Fee Quote, answered within one business day. Rush delivery for deals already in underwriting is accepted case by case for an additional fixed fee, quoted up front. Standard studies are completed in 10 to 15 business days from receipt of complete project data; complex or international assignments may require 20 to 25 business days. There are no success fees and no contingent pricing — the fee is the same whether the determination is favorable or not, which is precisely what makes the determination worth something.

What the Fee Buys

A Wert-Berater study is a lender-grade analytical package, not a narrative memo: a full report addressing every program-required factor, a linked financial model with a ten-year pro forma, sensitivity analysis at ±5, 10, and 15 percent, interest-rate stress testing from +0.5 to +3.0 percent, Monte Carlo simulation, discounted cash flow analysis, and ratio tables benchmarked against RMA and industry data — each with the supporting narrative an underwriter needs to rely on the figure without reconstructing it.

How much does a feasibility study cost?

Fees scale with the lending program, asset class, capital-structure complexity, and data readiness, and are quoted per engagement. Across 4,000+ Wert-Berater engagements since 1998, the study fee has typically represented a small fraction of one percent of total project cost.

How long does a feasibility study take?

Wert-Berater completes standard studies in 10 to 15 business days from receipt of complete project data. Complex or international assignments may require 20 to 25 business days.

Why not use a cheap template study?

Underwriters reject studies that do not address the program-required factors. A rejected study costs months of loan-cycle time, which exceeds any fee saved. Independent, program-compliant analysis is what the requirement exists to obtain.

What a Feasibility Study Actually Covers When Cost Is the Question

A fee-quote conversation is straightforward; the analytical work behind it is not. For any engagement where the question is how much does a feasibility study cost, the answer begins with scope — and scope is determined by what the lending program requires the analyst to resolve, not by what is convenient to produce. For a project evaluated under SBA SOP 50 10 8, the study must demonstrate operating coverage at or above 1.15x and global coverage at or above 1.00x, with the supporting narrative that allows an underwriter to trace every figure. For a USDA RD engagement, the analyst works across all enumerated feasibility dimensions in RD Staff Instruction 5001. For a conventional lender, the coverage threshold is typically 1.20x, applied to the lender’s stated underwriting standard.

  • Bound narrative report addressing every program-required factor in sequence
  • Fully linked ten-year pro forma with no hardcoded values, delivered as a live Excel workbook
  • Sensitivity analysis at ±5, 10, and 15 percent on revenue and expense assumptions
  • Interest-rate stress testing from +0.5 to +3.0 percent above the note rate
  • Monte Carlo simulation and discounted cash flow analysis with explicit discount-rate support
  • Ratio tables benchmarked against RMA and IBISWorld industry data
  • An explicit statement of conditions identifying what must remain true for the determination to hold

How the Market & Demand Analysis Is Built — and Why It Affects What a Feasibility Study Costs

The demand analysis is where analyst hours accumulate fastest, and it is the section underwriters scrutinize most closely. For a cost-of-a-feasibility-study engagement, the market work is not a restatement of secondary data; it is a constructed argument that primary demand is sufficient to support the projected revenue at the assumed price point, after accounting for competitive supply already in the market and supply reasonably expected to enter it.

Primary demand is assembled from sources that are specific to the project type: trade-association utilization benchmarks, state licensing and permitting registries, certificate-of-need filings where applicable, utility interconnection queues for energy projects, traffic-count databases for location-dependent retail or hospitality concepts, and U.S. Census and Bureau of Labor Statistics series for population, employment, and income trends in the defined market area. Competitive supply is counted from direct field enumeration, commercial real estate databases, municipal building-permit records, and state business-registration filings — not estimated. Each identified competitor is characterized by capacity, price positioning, and estimated utilization so the analyst can model the share the subject project must capture to achieve coverage. The result is a defensible market-share assumption, not a residual derived by subtracting a round number from a national growth rate.

The Assumptions That Decide Whether Coverage Is Met — and What They Mean for Study Cost

Every feasibility determination reduces, in the end, to a small number of inputs that dominate the coverage ratio. Identifying those inputs, testing them rigorously, and disclosing the results transparently is the analytical core of the engagement. For most projects, four assumption categories account for the majority of model sensitivity.

  • Revenue rate and utilization: the price per unit, per visit, per ton, or per room-night assumed in year one, and the ramp from stabilization through the projection period — tested at ±5, 10, and 15 percent
  • Operating expense structure: fixed versus variable cost split, labor burden, and any input commodity whose price is not contractually fixed — stressed independently from revenue to isolate margin compression
  • Debt-service terms: note rate, amortization period, and any balloon or repricing event — tested across the full interest-rate stress range from +0.5 to +3.0 percent
  • Stabilization timeline: the number of months before the project reaches its underwritten utilization level, which directly determines when coverage is first achieved and how much working capital the capital structure must carry
  • Capital cost and contingency: whether the construction budget and contingency reserve are sufficient to reach stabilization without a cost overrun that forces additional debt service into the model

Each assumption is documented with the source or method used to derive it, so the underwriter can evaluate the basis rather than accept the output.

What SBA, USDA, and Conventional Lenders Actually Look For — and How That Shapes Feasibility Study Cost

The three lending frameworks impose different analytical obligations, and those obligations directly determine the scope — and therefore the cost — of a compliant study.

Under SBA SOP 50 10 8, the underwriter needs a study that produces a documented operating coverage ratio at or above 1.15x and a global coverage ratio at or above 1.00x. The study must address the borrower’s relevant experience, the project’s market position, and the reasonableness of the financial projections. SBA underwriters are trained to identify studies that satisfy the form of the requirement without the substance; a narrative that restates the borrower’s own projections without independent verification does not satisfy the requirement.

Under USDA RD Staff Instruction 5001, the study must address all enumerated feasibility dimensions across the applicable program — Business & Industry, Community Facilities, REAP, or Value-Added Producer Grant — each of which carries its own emphasis. Community Facilities engagements, for example, require close attention to the service-area population base and the organization’s capacity to sustain operations through demand cycles. REAP engagements require technical feasibility analysis alongside the financial work.

Conventional lenders typically apply a 1.20x coverage standard and have more latitude in scope, but experienced credit officers expect the same quality of market evidence and model transparency that agency programs require. A study built to agency standards satisfies a conventional underwriter; the reverse is not always true.

How Much Does a Feasibility Study Cost, How Long Does It Take, and How the Engagement Actually Runs

Every engagement is quoted individually — within one business day of a completed four-field fee-quote request — after a brief qualification call covering the lending program, asset class, capital structure, and data readiness. The fee is fixed at that point; it does not change if the determination is unfavorable, if the model requires additional sensitivity runs, or if the underwriter requests clarification. There are no success fees and no contingent pricing, because a contingent fee would compromise the independence that makes the determination worth relying on.

Standard delivery is 10 to 15 business days from receipt of a complete project data room. The data room is the clock-start: the timeline does not begin until the analyst has the plans, budgets, lease abstracts, organizational documents, and any third-party reports the scope requires. Incomplete submissions extend the timeline; assembling a complete data room before engagement is the single most effective way a borrower can control both cost and schedule.

Upon delivery, the financial model is published to a secure client portal as a fully linked Excel workbook. Every input cell is unlocked and labeled; no values are hardcoded. A reviewer can change any assumption — occupancy, rate, expense, note rate, amortization term — and the pro forma, coverage ratios, and sensitivity tables recalculate immediately. The model stays live in the portal for the duration of the underwriting process, which means a lender requesting a scenario does not require a new engagement.

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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.

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