USDA Feasibility Study
USDA Feasibility Study Services
USDA Regulation 5001–Compliant Feasibility Studies
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Underwriter-Led Experience That Protects Borrowers, Lenders, and Guarantees
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For more than 28 years, we have provided independent feasibility studies for complex real estate, infrastructure, business, and public-sector projects. Our team is comprised of experienced underwriters, not academic researchers or marketing consultants. This distinction is essential under USDA OneRD (7 CFR Part 5001), where feasibility studies function as credit-risk and underwriting instruments, not promotional narratives.
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We have completed USDA Regulation 5001–compliant feasibility studies nationwide and throughout U.S. territories, across 30 economic sectors and hundreds of industries. Our work supports lenders, borrowers, and USDA Rural Development by producing feasibility opinions aligned with how credit decisions are actually made, reviewed, and defended.
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Our experience, project examples, and client commentary are documented on our Feasibility Study Consultant Experience and Feasibility Studies Across Industries pages.
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The Complexity of USDA Regulation 5001 Feasibility Studies
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USDA feasibility studies governed by 7 CFR Part 5001 are fundamentally different from conventional feasibility or market studies. They must withstand multiple layers of scrutiny simultaneously, including federal lending regulations, lender underwriting standards, USDA Rural Development credit review, and long-term servicing, audit, and loss-claim examination.
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Because USDA guaranteed loans often extend 20 to 40 years, feasibility analysis must evaluate long-term durability, not short-term stabilization. This includes exposure to economic cycles, operational disruptions, demand volatility, labor constraints, and capital structure risk.
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This level of analysis requires underwriting judgment, regulatory fluency, and operational realism—capabilities developed through direct, long-term credit experience.
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Why Underwriter-Led Experience Matters
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Unlike firms staffed primarily by junior analysts or offshore research teams, our feasibility studies are led by seasoned underwriters with decades of credit experience. We approach feasibility the same way lenders do: by identifying, measuring, and mitigating risk.
With 28 years in business, we recognize risks not because they are theoretical, but because we have seen them materialize across multiple economic cycles, diverse geographic markets, varying borrower and management profiles, and different industry structures.
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This underwriting-driven approach allows us to:
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Identify structural weaknesses early
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Stress-test assumptions realistically
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Align capital structures with sustainable cash flow
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Produce feasibility conclusions that support lender certification under USDA regulations​
Nationwide and U.S. Territory Experience
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We have completed feasibility studies across the continental United States and U.S. territories, including rural, remote, island, and infrastructure-constrained markets. These environments require feasibility analysis that accounts for limited labor pools, supply-chain constraints, seasonal or tourism-driven demand, and utility or transportation limitations.
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Because USDA reviewers implicitly benchmark projects against similar efforts elsewhere, geographic breadth matters. Our nationwide and territorial experience allows us to contextualize feasibility conclusions based on how similar projects have actually performed—not how they are expected to perform on paper.
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Experience Across 30 Sectors and Hundreds of Industries
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Our feasibility experience spans more than 30 economic sectors and hundreds of industries, including healthcare and community facilities, manufacturing and industrial operations, logistics and distribution, hospitality and tourism, agricultural processing, rural services, energy, utilities, and specialized infrastructure.
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This multi-sector exposure is critical under USDA Regulation 5001, where feasibility assumptions must be sector-specific. Applying generic models across industries is one of the most common causes of USDA feasibility deficiencies.
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How Our USDA 5001 Feasibility Studies Differ From Lesser-Experienced Providers
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Not all firms offering “USDA feasibility studies” possess the experience, underwriting background, or regulatory familiarity required under 7 CFR Part 5001. Many lesser-experienced providers rely on template-based market language, investor-style narratives, or generic financial projections that do not translate into defensible credit analysis.
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Some providers operate primarily outside the United States, occasionally marketing U.S. “virtual offices” while lacking direct exposure to U.S. federal lending standards, lender underwriting practices, or USDA servicing and audit requirements. While this may be adequate for general consulting work, it presents material risk when feasibility studies are relied upon for federally guaranteed loans.
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Common Deficiencies in Non-Underwriting Feasibility Reports
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Feasibility studies prepared by firms with limited USDA Regulation 5001 experience often exhibit overstated demand assumptions, financial projections disconnected from underwriting benchmarks, minimal evaluation of management capacity, insufficient downside or stress analysis, and generic conclusions that do not support lender certification.
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These deficiencies frequently lead to USDA information requests, approval delays, loan restructuring or downsizing, increased lender risk exposure, and, in some cases, rejection or withdrawal of applications.
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Why Lenders and Borrowers Choose Our Firm
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Clients choose our firm because our team is comprised of experienced underwriters, our feasibility studies are designed to support lender credit decisions, and our work is structured to remain defensible throughout loan servicing, audits, and loss-claim review.
Our experience is documented, verifiable, nationwide in scope, and grounded in decades of underwriting-driven feasibility work.
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Experience Is a Risk-Control Mechanism Under USDA 5001
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Under 7 CFR Part 5001, feasibility quality directly affects loan approval, loan sizing, long-term compliance, and guarantee protection. In this regulatory environment, experience is not a branding advantage—it is a risk-control mechanism for borrowers and lenders alike.
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That is what 28 years of underwriter-led feasibility consulting delivers.
USDA Feasibility Study
REAP Renewable Energy and Food Supply Programs
USDA RD Instruction 4280-B Appendix D and 7 CFR 5001.303 (c) (4)
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Executive Summary
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Provide an overview to describe the nature and scope of the proposed project, including the purpose, project location, design features, capacity, and estimated capital costs. Include a summary of the feasibility determinations made for each applicable component.
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Economic Feasibility
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Minimum amounts of required inputs (labor, infrastructure, utilities, renewable resources,
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feedstocks, animals, among others) to operate successfully
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Contracts in place and contracts to be negotiated, including terms and renewals
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Environmental risks
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Cost of project relative to the increase in revenues or benefits provided
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Overall economic impact of project including new markets created and economic development
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Conclusions
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Market Feasibility
Analysis of the current and future market potential, competition, sales or service estimations including current and prospective buyers or users.
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Competition
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Type of project: service, product or commodity based
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Target market, new versus established
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End user analysis, captive versus competitive
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By-product revenue streams
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Industry risk
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Pricing
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Conclusions
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Technical Feasibility
Analyzing the reliability of the technology to be used and the analysis of the delivery of goods or services, including transportation, business location, and the need for technology, materials, and labor.
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Commercial availability
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Product and process success record and duplication of results
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Experience of the service providers Roads, rail, airport infrastructure
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Water, electricity, and other utilities
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Waste disposal
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Need for local transportation.
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Labor market
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Availability of materials
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Use, age, and reliability of technology
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Construction risk
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Conclusions
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Financial Feasibility
IAnalysis of the operation to achieve sufficient income, credit, and cash flow to financially sustain the project over the long term and meet all debt obligations.
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Commercial or project underwriting
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Management’s assumptions
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Accounting policies
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Source of repayment
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Dependency on other entities
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Equity contribution
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Market demand forecast
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Peer industry comparison
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Cost-accounting system
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Availability of short-term credit
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Adequacy of raw materials and supplies
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Sensitivity analysis
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Conclusions
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USDA Feasibility Study Financial Analysis:
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Pro forma (10 years)
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Discounted Cash Flow Analysis (DCF)
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Structure of the Assets and Liabilities
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Net Assets (Net Worth)
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Financial Sustainability Analysis
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Key ratios of the company's financial sustainability
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Working capital analysis
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Liquidity Analysis Financial Performance
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Overview of the Financial Results
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Profitability Ratios
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Analysis of the Business Activity (Turnover Ratios)
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Labor productivity
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Key Ratios Summary
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Rating of the Financial Position and Financial Performance
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Bankruptcy Test
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Calculation of the Final Rating of the Financial Condition
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Management Feasibility
Analysis of the legal structure of the business or operation; ownership, board, and management analysis.
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History of the business or organization
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Professional and educational background
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Experience
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Skills
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Qualifications necessary to implement the project
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Conclusions
Anaerobic Digester Project/Biogas Projects
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Provide adequate and appropriate data to demonstrate the amount of renewable resource available.
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Indicate the substrates used as digester inputs, including animal wastes or other Renewable Biomass in terms of type, quantity, seasonality, and frequency of collection.
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Describe any special handling of feedstock that may be necessary. Describe the process for determining the feedstock resource.
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Provide either tabular values or laboratory analysis of representative samples that include biodegradability studies to produce gas production estimates for the project on daily, monthly, and seasonal basis. If an anerobic digester project, identify the type of operation (e.g., dairy, swine, layer, etc.), along with breed, herd population size and demographics, and the type of waste collection method and frequency information available.
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For the biogas produced, identify the type of digester (e.g., mixed, plugflow, attached film, covered lagoon, etc.), if applicable, or the method of capture (landfill, sewage waste treatment, etc.) and treatment.
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Identify the system designer and determine the digester design assumptions such as the number and type of animals, the bedding type and estimated annual quantity used, the manure and wastewater volumes, and the treatment of digester effluent (e.g., none, solids separation by screening, etc. with details including use or method of disposal)
USDA Feasibility Study
Community Facility Programs
USDA Financial Feasibility Study Guidelines Community Programs RD Instruction 1942-A, Guide 5
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A. Need for the Facility.
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B. Existing facilities
1. Explain current capacities, rates or usage, activities, suitability for continued use, deficiencies in services, staff, physical conditions and any other pertinent information.
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C. Proposed Facility
1.Description of construction and renovation by component including capacity of each component part and physical limiting factors.
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2. Explain and document the need for the facility. Include comments regarding the following:
a. Service area
b. Population trends
c. Similar facilities in the service area
d. Usage trends
e. Community support
f. Regulatory agency approval
g. Economy in the service area
h. Analysis of staff and consultants
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D. Financial Information
1. Explain all assumptions underlying the expected demand, use, and projections of financial data such as:
a. Change in usage
b. All income and expenses
c. Rate structure
d. Allowance for uncollectible accounts
e. Depreciation life and method
f. Description of long-term debts
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2. Financial Statements.
The following financial statements must be prepared reflecting five-year projections.
a. Balance sheets for all funds
b. Statement of income and expenses
c. Statement of cash flows (cash receipts and disbursements)
d. Comparison data for facilities in service area
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F. Conclusions
USDA Feasibility Study
USDA Section 9003 Biorefinery, Renewable Chemical and Biobased Product Manufacturing Assistance
Section 9003 Biorefinery, Renewable Chemical and Biobased Product Manufacturing Assistance Appendix B – Feasibility Study Outline - CFR Part 4279.261 (a) - (j)
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A. Executive Summary
1. Introduction and a brief, general project overview
2. Economic feasibility determination
3. Market feasibility determination
4. Technical feasibility determination
5. Financial feasibility determination
6. Management feasibility determination
7. Recommendations for implementation
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B. Economic Feasibility
1. Describe your feedstock. Include:
a. Feedstock source management
b. Estimates of feedstock volumes and costs
c. Collection, pre-treatment, transportation, and storage
d. Feedstock risks
2. Verify that woody biomass feedstock from National Forest System or public lands will not be used for a higher- value product
3. Describe the impact on similar biorefineries in the area in which the borrower proposes to locate the project, if applicable
4. Describe the potential impact on existing manufacturing plants or other facilities that use similar feedstock if your proposed production technology is adopted
5. Provide projections of impact on resource conservation, public health, and the environment
6. Include economic feasibility details about your project site such as a description of its size and suitability, proximity to utilities and modes of transportation, storage options, and so on
7. Confirm access to trained – or trainable – labor
8. Describe the availability of infrastructure, including utilities, and transportation (road, rail, and so on) to the site
9. Explain the overall economic impact of your project. Include direct and indirect jobs created or saved, additional markets created for agricultural and forestry products and agricultural waste material, and the potential for rural economic development
10. Discuss the feasibility of – and any plans for – your project to work with producer associations or cooperatives. Include the estimated amount of feedstock purchased annually from – or sold to – producer associations and cooperatives
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C. Market Feasibility
Include:
1. Information on the sales organization and management
2. An explanation of the nature and extent of the market, along with the market area
3. Marketing plans for the sale of projected output-principal products and byproducts
4. Extent of competition, including other similar facilities, in the market area
5. Commitments from purchasers of off-take -principal products and secondary products, degree of commitment, duration or terms of off-take agreements, and the financial strength of counterparties
6. Risks related to the industry, including
a. Industry status
b. Specific market risks
c. Competitive threats and advantages
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D. Technical Feasibility
Demonstrate:
1. Suitability of the selected site for the intended use
2. Scale of development for which the process technology has been proven (for instance, pilot, demonstration, or semi-work scale facility). Provide evidence that the proposed technology is feasible and can succeed.
NOTE: The proposed technology must meet the definition of “eligible technology” as described in 7 CFR 4279.202 (available at this link: https://go.usa.gov/xJfpc).
3. The degree of integration of all processes. A summary of any integrated demonstration unit test results also must be submitted.
4. Specific volume produced from the technology of the process (expressed either as volume of feedstock processed in tons-per- unit of time, or as product in gallons-per-unit of time)
5. Identification and estimation of project operation and development costs, specifying the level of accuracy of the estimates, and the assumptions upon which they are based
6. Detailed analysis of project costs, including:
a. Project management, professional services, and resource assessments
b. Project design and permitting
c. Land agreements and site preparation
d. Equipment requirements, along with system installation startup and shakedown
e. Warranties, insurance, financing, and operation and maintenance costs
7. Projected timeline describing borrower plans from the time of loan application through plant construction, commissioning, and ramp-up
8. Potential for commercial replication of the proposed system
9. Risks related to:
a. Biorefinery construction
b. Production of the advanced biofuel and biobased product, including renewable chemical, if applicable
c. Regulation and governmental action
d. Design-related factors that can impact project success
e. Technology scale-up risk
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E. Financial Feasibility
1. Address the reliability of the financial projections and the assumptions upon which they are based. Include all sources and uses of project capital, private or public, and federal or non-federal funds. Provide detailed descriptions and analysis of projected balance sheets, income, expense, and cash flow statements covering the useful life of the project.
2. Provide a detailed description of the degree to which the project’s financial feasibility is dependent upon:
a. Investment incentives
b. Productivity incentives
c. Loans and grants
3. Identify project authorities, renewable identification numbers (RINs) value, tax credits, other credits, and any subsidies that affect the project
4. Address any constraints or limitations in the financial projections
5. Describe the ability of the business to achieve the projected income and cash flow
6. Assess the cost accounting system
7. Confirm the availability of short-term credit or other means to meet seasonal business costs
8. Verify the adequacy of raw materials and supplies
9. Provide a sensitivity analysis, including feedstock and energy costs, along with product and byproduct prices
10. Address risks related to the:
a. Project
b. Borrower financing plan
c. Operational units
d. Tax issues
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F. Management Feasibility
1. Highlight borrower’s or management’s previous experience concerning:
a. Production of advanced biofuel and biobased product, including renewable chemicals, as applicable
b. Acquisition of feedstock
c. Marketing and sale of off-take
d. The receipt of federal financial assistance, including amount of funding, date received, purpose, and outcome
2. Describe your management plan for the procurement of feedstock and labor, marketing of the off-take, and management succession.
3. Address risks related to:
a. The borrower as a company (for example, identify potential development stage risks regarding the structure of your management team or other personnel)
b. Conflicts of interest
c. Management strengths and weaknesses
G. Qualifications
You must submit a resume or statement of qualifications of the application author and any contributors to the feasibility study. Include the prior, applicable experience of all pertinent parties.
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Book a Meeting to Interview us.
Strongly recommended.
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Always interview an USDA Feasibility Study Consultant!