Prime Went Up. For Most SBA Borrowers, That Was Not the Rate Shock That Mattered.
Variable-rate SBA borrowers still pay less than in mid-2025. New 504 borrowers are locking in rates about a point higher.
Every Loan Analytics feasibility study is written and signed by Daniel Smith, MAI, as an independent third party with no interest in the borrower, the loan or the project.
For the lender it covers what the credit file needs: the market and the site, the competition, the projections and the debt service coverage behind the request, written to the rules of the program financing it, SBA 7(a), SBA 504, USDA Business and Industry or a conventional bank loan.
Loan Analytics prepares independent feasibility studies for SBA 7(a), SBA 504, USDA Business and Industry, REAP and Community Facilities loans, and publishes the state-level lending, demographic and commercial real estate data those studies are underwritten from. Lenders, CDCs and sponsors engage us when a credit file needs a third-party report that reviewers can trace line by line to a public source.
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A feasibility study company produces the independent report that stands between a sponsor's projections and a lender's credit decision. On an SBA or USDA loan the report has a defined job: establish that the market can absorb the project, that the cost basis is supportable, that projected cash flow covers debt service with a margin the program accepts, and that the sponsor's assumptions survive stress. The study is commissioned by the lender or the sponsor, addressed to the lender, and relied upon by the reviewer who signs the guarantee.
Loan Analytics does this work across the full SBA and USDA program set. The difference between our studies and most others is where the numbers come from. We maintain the state and county lending tables, the demographic series and the market metrics that a study cites, so the demand section of a Loan Analytics report is written from a dataset we already publish, not assembled from a broker flyer the week the engagement starts. Reviewers can check our figures against our own published pages.
Three questions decide whether a feasibility study company is the right one for a file:
The SBA approved a record $45.09 billion in fiscal 2025, and its lending manual never requires a feasibility study for any of it. SOP 50 10 8.1, effective 1 October 2026, does not change that. What it changes is where projection risk is allowed to live: acquisitions must now clear 1.25x coverage on historical earnings, so a deal that only works on a projection is no longer an acquisition file. It is a start-up, construction or expansion file, and those are the files lenders order studies on. Loan Analytics writes 7(a) and 504 studies to the SOP in force on the loan-number date, sized to the loan and formatted for the credit memo.
USDA is the stricter program. 7 CFR 5001 requires an independent feasibility study from a qualified consultant for start-up businesses under Business and Industry and for any project where the Agency or the lender determines one is needed, and the reviewer expects the study to cover economic, market, technical, financial and management feasibility in that order. Loan Analytics prepares B&I, REAP and Community Facilities studies with the sensitivity analysis and rural-market demand work that USDA reviewers send files back for when it is missing.
Lenders search for both, and the distinction matters to the file. A feasibility study consultant is an individual who signs the report and stands behind it under the independence rules of the program. A feasibility study company is the firm that houses the consultant, the analysts, the data and the quality control. On a Loan Analytics engagement the lender gets both: a named signatory with the credentials the reviewer expects, and a firm with a published data spine behind every figure in the report.
Who signs matters because the SBA and USDA both attach the independence requirement to the person and the firm, and because a study signed by someone who cannot answer a reviewer's follow-up question is a study that stalls in committee. Every Loan Analytics study is signed by Daniel Smith, MAI, who is available to the lender and the agency reviewer for questions after delivery.
Federal lending records, county demographics, and CRE market metrics, organized the way credit decisions are made.
Loan Analytics turns public data into the evidence behind every feasibility study we sign. We aggregate SBA 7(a) and 504 loan records, USDA Rural Development obligations, Census Bureau demographics, and commercial real estate fundamentals into state-level datasets that lenders, sponsors, and analysts can read in minutes and rely on in committee.
SBA and USDA loan programs run on evidence. Underwriters, CDCs and agency reviewers expect every demand claim to trace back to a verifiable source, and the most common reason a feasibility study is sent back is that it cannot. A study written from a published dataset:
What the Coverage Includes:
The same data spine underpins independent feasibility studies for projects that need a full lender-grade report.
When a project requires a complete, agency-conforming feasibility study rather than the underlying data, Loan Analytics prepares independent reports built on the same dataset. Start with the numbers, and engage us when the file needs the full narrative. Contact us for scope and timeline.
SBA & USDA Feasibility Studies
Bankable analytics for lenders, investors, and sponsors
Every study we produce is engineered to withstand the scrutiny of credit committees, CDCs, the SBA Sacramento Center and USDA Rural Development reviewers, delivered on time, audit-ready and formatted for direct insertion into loan memos. Across both programs we quantify market demand, competitive positioning, revenue ramps, cost structures, job creation and collateral adequacy, and we test every conclusion under stress before it reaches a lender.
Owner-occupied real estate, hospitality and outdoor hospitality, food and beverage, automotive and convenience, franchised and personal services, senior and health care, self-storage and specialty industrial, rural manufacturing and value-added agriculture, renewable energy, cold-chain and logistics, community facilities and broadband. The asset classes where SBA and USDA lending concentrates are the ones our dataset tracks in the most depth, and the ones our published analyses cover:
Market research, program analysis, and lending data briefs from the Loan Analytics desk.
Variable-rate SBA borrowers still pay less than in mid-2025. New 504 borrowers are locking in rates about a point higher.
For one quarter, SBA’s public data showed which loans were late. By the next release, the detail was gone, with no explanation.
SBA’s record FY2025 was counted in approvals. By March 2026, 12,924 of those loans had been cancelled before a dollar moved.
Headlines are treating a 19 percent drop in active SBA 7(a) lenders as proof the industry is fleeing the program. The data tell a different story: almost no lenders have documented exits, share is shifting sharply among those who remain, and the volume that disappeared is concentrated in small loans under new underwriting rules.
Texas takes more than a tenth of USDA’s Business & Industry loan guarantees, and ten states take half — but the federal spending database most analysts would reach for ranks states on the wrong number entirely. This article builds a reconciled, three-year ranking from USDA’s own budget tables, exposes a subsidy-cost trap in USAspending.gov that distorts state comparisons, and shows how normalizing for rural population flips the story about which states are actually best serve
Loan officers can describe exactly what goes wrong when a gas station, car wash or hotel loan defaults — tank testing, environmental reports, fuel contracts that won’t transfer. But ask how many cents on the dollar lenders actually recover, and the certainty disappears. This piece lays out what SBA’s own data do and don’t show, what outside benchmarks from CMBS and failed banks suggest, and why no one — not SBA, not lenders, not analysts — can currently cite a real recovery r
A firm that prepares independent, third-party feasibility studies for lenders and sponsors. On SBA and USDA loans the study establishes market demand, cost basis, projected cash flow and debt coverage, and is relied upon by the credit committee and the agency reviewer.
No program-wide requirement exists in SOP 50 10 8. The SOP permits the lender to require one, and lenders do so on start-ups, special-purpose properties and files where repayment depends on unproven demand.
Nothing in the trigger and everything in the routing. Effective 1 October 2026 by loan-number date, 8.1 requires acquisitions to show 1.25x coverage on historical earnings and bars projections from the coverage test. Deals that depended on a projection now reach lenders as start-up, construction or expansion files, which are the files where an independent feasibility study is expected.
7 CFR 5001 requires an independent feasibility study by a qualified consultant for start-up businesses under Business and Industry, and for any project where the Agency or the lender determines one is needed. Community Facilities and REAP carry their own study expectations.
Analysts working from our published lending, demographic and market datasets, with every study signed by Daniel Smith, MAI, who is independent of the project and available to the lender and reviewer for questions.
Both. The named signatory is the consultant the program's independence rules attach to; the firm supplies the analysts, data and quality control behind the report.
Fees are quoted as a fixed number by asset class and program. The useful comparison is the fee as basis points of the loan: a $9,000 study is 180 basis points of a $500,000 loan and 26 basis points of a $3.5 million one.
No. The data pages are the public layer. A feasibility study is the engagement that turns that data into an agency-conforming report for a specific project, lender and loan.
Start with the data.
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