Most Deals Don't Need a Feasibility Study. Here's When Yours Does.
Myth vs. Reality
Myth
"The SBA requires a feasibility study for every startup and construction loan."
Reality
The requirement is discretionary. The lender or the agency may require a study when the deal is underwritten on projections rather than operating history. Many deals close without one.
Myth
"There's an official SBA five-part feasibility framework every study must follow."
Reality
The codified five-part standard most people cite belongs to USDA's regulations, not SBA's. It matters if your deal runs through USDA B&I, where the format is prescribed.
What Actually Triggers a Study
1
Startups and businesses under two years
No operating history means projections carry the file, and projections need independent support.
2
Complete change of ownership
New management assumptions get tested, especially when the buyer is new to the industry.
3
Special-purpose properties
Single-use real estate concentrates risk. Lenders want third-party validation of demand.
4
Ground-up construction
Nothing exists yet. The study substitutes for the operating history the building doesn't have.
5
Projection-based underwriting
Any file where future numbers, not historicals, carry the debt service gets extra scrutiny.
6
USDA B&I deals
Rural deals through USDA follow the codified study format. Plan for it in cost and timeline.
Why We Don't Write Feasibility Studies
The study exists to independently test whether your projections hold up, and the lender is its real audience. A study authored by the party arranging your financing is a credibility problem no matter what the rules technically allow. We connect you with qualified independent providers, help you scope the study to what your lender will actually accept, and package the finished study into your loan file.
CreditHub Access is not a lender and does not author feasibility or market studies. We may receive referral compensation from study providers. Our loan placement services remain free to borrowers.
Not Sure If Your Deal Needs One?
Tell us about the project. We'll tell you whether a study is likely, what it should cover, and connect you with the right provider if you need one.