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Feasibility Study Services: Independent Studies for SBA, USDA and Bank Loans

Last updated 30 October 2026. Written and signed by Muhammad Tayyab Shabbir, Business Plan Firm (an Avvale company).

Business Plan Firm writes independent feasibility studies for US lenders, SBA 504 projects, USDA guaranteed loans and grants, and boards making a go/no-go call. Fixed prices: Essential $3,900, Standard $6,500, Premium $9,800, complex multi-site work from $14,000. Turnaround 10, 15 or 20 business days. Each study follows USDA's eight-element federal template and is signed by a named author. USDA defines the qualified consultant as "an independent third-party person possessing the knowledge, expertise, and experience to perform the specific task required".

Named author: Muhammad Tayyab Shabbir, MSci from University College London, published textbook author, with a written independence policy.
Deliverable: PDF study, editable financial workbook, source register. Fixed fee, never hourly.
Book: free 30-minute call.

The finding: outside one USDA Community Facilities report, no federal rule we read requires a license of a feasibility study consultant. The rules test independence and experience, and they set whether loan or grant funds may pay for the study. 7 CFR 5001.3 sets license and experience tests for energy auditors and assessors, not for this role. For 504 loans, SBA's SOP 50 10 8.1 calls these documents "Reports prepared independently of the small business". USDA Business and Industry guaranteed loan funds may pay for "Feasibility studies and business plans" (7 CFR 5001.121(c)(10)); a REAP renewable energy system or energy efficiency grant may not (7 CFR 4280.125(b)(7), in force since 16 October 2026). See the $9,800 worked example. General information as of 30 October 2026; confirm requirements with your lender, CDC or USDA office.

What is a feasibility study, and how is it different from a business plan?

A business plan argues your project should be funded. A feasibility study tests whether it can work, and may conclude that it cannot; when USDA asks for one on a guaranteed loan, it "should be prepared by a qualified, independent third party" (7 CFR 5001.303(c)(4)). Under 7 CFR 5001.3, a feasibility study is "a report including an opinion or finding conducted by an independent qualified consultant(s) evaluating the economic, market, technical, financial, and management feasibility of the proposed project or operation in terms of its expectation for success as outlined in appendix A to subpart D of this part." That appendix sets out the eight elements below.

How much does a feasibility study cost?

Business Plan Firm feasibility study pricing, from 22 August 2026
Tier	Price	Turnaround	Suited to
Essential	$3,900	10 business days	Single site, single concept. Bank loan, landlord, board or internal go/no-go. Desk research plus your data.
Standard	$6,500	15 business days	SBA 504 projects where the CDC or SBA has asked for a study; franchise, hospitality and healthcare concepts. Adds primary interviews.
Premium	$9,800	20 business days	USDA B&I and Community Facilities guaranteed loans, special purpose properties.
Complex	From $14,000	Quoted	Larger multi-site or multi-phase projects, scoped and quoted before work starts.

How that compares to a business plan

A study costs more than a business plan because it adds an independent opinion, a named signature and, from Standard up, primary research: if someone offers one at business-plan prices, ask who signs it. We print no market price range: we hold no verified figures for other firms' fees. Fees are fixed before work starts, and we never charge a percentage of anything you borrow, invest or raise. See every price we charge.

Can a loan or grant pay for the feasibility study?

On a USDA Business and Industry guaranteed loan, yes: guaranteed loan funds may pay for "Feasibility studies and business plans" (7 CFR 5001.121(c)(10)). On a REAP renewable energy system or energy efficiency grant, no: under new Subpart B of 7 CFR Part 4280, "Activities and expenses related to any of the following are unallowable:", and item (7) is feasibility studies (new 4280.125(b)). On a VAPG Planning Grant, yes: it exists "specifically for the purpose of paying for conducting and developing a Feasibility Study" for a value-added agricultural product (7 CFR 4284.903).

Worked example: the same $9,800 study fee under two USDA programs
Step	B&I guaranteed loan over $1,000,000.00 to a new business	REAP renewable energy grant
Is a study required?	Yes, 7 CFR 5001.306(a)(3)(i)	Optional: it may replace the Resource Assessment, new 4280.131(b)(3)
Study fee	$9,800	$9,800
May program funds pay it?	Guaranteed loan funds may, 5001.121(c)(10)	Grant funds may not, new 4280.125(b)(7)
Paid from	The loan, if your lender includes it: $9,800 borrowed, not granted	Other funds, not the grant: $9,800

An eligible use is permission, not a promise: settle with your lender whether the loan includes the fee. For a USDA guaranteed loan, 7 CFR 5001.303(c) lists a business plan among items that "may also be required", and (c)(10) says "Unless the information is contained in the feasibility study or in the credit evaluation, a business plan should be submitted to show how the project will operate and remain viable." Our reading: where the Agency asks for a business plan, a study that carries that information can stand in for it. We found no equivalent rule in SBA's SOP.

When does SBA or a bank ask for a feasibility study?

SBA can require one on any business loan, but SOP 50 10 8.1 names triggers only for 504 loans. The word "feasibility" appears five times in the SOP, all in two adjacent 504 paragraphs headed Independent Studies or Reports and Feasibility Studies (Section C, Chapter 1), and the phrase "market study" not at all. Separately, 13 CFR 120.160(b), which covers every SBA business loan, 7(a) included, says: "SBA may require professional appraisals of the applicant's and principals' assets, a survey, or a feasibility study." The full reading is in SBA feasibility study requirements.

Both headings are items the CDC credit memorandum must address. Studies are among the "independent studies/reports" that "may be beneficial in mitigating any weaknesses identified in the credit analysis". The SOP states that "SBA has the regulatory authority to request a feasibility study when it is needed to further understand the small business type and market conditions at the project location", and that the SLPC Director "will request a feasibility when appropriate" [SBA's wording]. Five circumstances "may cause SBA to request a feasibility study": market saturation; a unique market concept; a highly specialized project property; a project out of scale with its community; or rapid growth with rising undisbursed or unseasoned debt.

Bank loans. A bank's own lending policy may call for one. For development and construction projects and completed commercial properties, the Interagency Guidelines for Real Estate Lending (for national banks, 12 CFR Part 34, Appendix A to Subpart D) say that policy should establish "Requirements for feasibility studies and sensitivity and risk analyses".

Does the USDA require a feasibility study?

For some loans and grants, yes. Under 7 CFR 5001.306(a)(3)(i) a study by an independent qualified consultant is required for a Business & Industry guaranteed loan greater than $1,000,000.00 to a "new business". Otherwise it is discretionary: for guaranteed loans over $600,000, 5001.306(a)(3) lets the Agency require one when the lender's analysis, the borrower's business plan or the project information "is not sufficient to determine the technical feasibility, market feasibility, or economic viability of the project"; on any guaranteed loan, 5001.303(c)(4) lets it require one when it cannot determine a basis for successful repayment. More in USDA Business and Industry loan requirements.

"New business" is broader than "startup". Beyond a business in operation for less than one full year, 7 CFR 5001.3 includes "a business that has been in operation for at least one full year and has not achieved full operational capacity or stable operations as determined by the Administrator, including a new enterprise or new affiliate of an existing business moving or expanding into a new location involving new market or labor areas".

Community Facilities. 7 CFR 5001.304(a)(4)(i) requires a study for guaranteed loans greater than $1,000,000.00 to "a new entity or an entity conducting a new activity". Every CF guaranteed loan also needs a financial feasibility report: for some, an analysis the lender may prepare; for the rest, the examination opinion described under what we do not do.

Value-Added Producer Grants. 7 CFR 4284.931(h) requires a Feasibility Study for Working Capital Grant applicants; 4284.932 waives it for requests under $50,000, for Market Expansion requests of $50,000 or more with a Marketing Plan or Business Plan, and for qualifying Food Safety projects. A waiver leaves the scoring criteria unchanged, including those a study would support.

REAP. Under the REAP grant rule in force since 16 October 2026 (91 FR 62600), for a renewable energy project "the Applicant must provide a Resource Assessment, or the Applicant can provide a Feasibility Study in lieu of a Resource Assessment"; an energy efficiency project needs an energy assessment or an energy audit instead (new 4280.131(b)(3)). REAP guaranteed loans need a study for renewable energy projects only "when deemed necessary by the lender or Agency" (7 CFR 5001.307(d)).

What does a feasibility study contain?

USDA publishes the most detailed federal template we have found: the five feasibility components its rules name, plus an executive summary, a recommendation and the author's qualifications. Every study we write carries all eight, whichever program you apply to.

Study contents, mapped to Appendix A to Subpart D of 7 CFR Part 5001
Element	What we deliver
Executive summary	The opinion, up front, in one page a credit committee can read.
Economic	Trade-area economy, employment base, income and population trajectory, project impact.
Market	Demand estimate, competitor census with drive-time mapping, capture-rate modeling, pricing evidence, saturation test.
Technical	Site, capacity, equipment, process flow, staffing, licensing and regulatory path.
Financial	Five-year projections tied to the market model, break-even, DSCR, sensitivity on the decisive assumptions.
Management	The operating team assessed against this specific project, including gaps.
Recommendation	A named consultant's opinion and recommendation; Appendix A has the study conclude with one.
Qualifications	A resume or statement of qualifications for the author, including prior experience, as Appendix A asks.

How long does a feasibility study take?

The phases below are the Premium track, 20 business days; Standard runs them in 15, and Essential in 10 without primary research.

Day 0: scoping call; program, trigger and decision-maker identified; fixed price given. Existing operators send three years of financials, current pricing and volumes, and site details; startups send the site or shortlist, capital expenditure quotes and any letters of intent.
Days 1 to 3: trade area drawn, competitor census built, datasets pulled and date-stamped.
Days 4 to 8: operator, supplier, regulator and referral-source interviews (Standard, Premium).
Days 9 to 13: demand model, financials tied to it, draft written to the eight elements.
Days 14 to 20: figures tied back to the source register, opinion signed by the named author, study delivered.

Who is qualified to be a feasibility study consultant?

Someone independent of your business, with the experience the task needs. Where USDA's guaranteed loan rules make a study mandatory (7 CFR 5001.306(a)(3)(i), 5001.304(a)(4)(i)), it must be prepared by an "independent qualified consultant acceptable to the Agency". 7 CFR 5001.3 defines the term: "Qualified consultant(s) means an independent third-party person possessing the knowledge, expertise, and experience to perform the specific task required." The same section sets credential tests for energy work, such as "A licensed professional engineer in the State in which the audit is conducted with at least 1 year of experience" for an energy auditor, and none for the consultant who writes a feasibility study. VAPG's Qualified Consultant at 7 CFR 4284.903 is "a third-party, without a conflict of interest" with the same knowledge, expertise and experience, and 4284.931(h) adds: "The name and credentials of the Qualified Consultant must be provided along with the date the Feasibility Study was completed." Apart from the Community Facilities examination opinion, we found no CPA, PE or MAI requirement for a study author in these sections.

So when you hire a feasibility study consultant, judge independence and documented experience, and ask your lender, or for USDA the Agency, to confirm the consultant is acceptable before you pay.

Our independence policy

Under our independence policy we do not write a study for a project whose business plan we wrote in the last 24 months; we refer you to another firm instead.

No equity. We take no ownership stake, warrant or option in any business we write a study for.
No referral fees. We neither pay nor accept fees from lenders, franchisors, equipment vendors or CDCs.
No contingent fees. The fee is fixed in advance and unlinked to the conclusion, the loan closing or the grant award. We are paid the same for a "do not proceed".
No operator advisory within 24 months. If we have advised the operator on the same project in the preceding 24 months, we decline the feasibility engagement and say why.
Disclosure. Any prior relationship with the applicant, lender or site is disclosed on the qualifications page of the study itself.

Who writes your study

Every study is signed by Muhammad Tayyab Shabbir, founder of Avvale and Business Plan Firm: MSci from University College London, published textbook author, 2026 finalist, Global Innovator Awards, UK SME Global Expansion, consulting since 2019 (about the author). His qualifications page ships inside each study, as Appendix A asks. Business Plan Firm is the US practice of Avvale, a London consultancy: 1,000+ plans written, 500+ founders across 30+ countries, and our clients have raised $500M+.

What we do not do

No MAI appraisals. We refer you to a state-certified general appraiser and share our trade-area assumptions.
No CPA examination opinions. The USDA Community Facilities "financial feasibility study with examination opinion" at 7 CFR 5001.304(b) must be prepared under AICPA attestation standards by a preparer carrying professional liability insurance. We are not a CPA firm: we build the market, technical and demand analysis alongside the CPA firm issuing the opinion, or send you straight to one.
No energy audits, Phase I environmental site assessments or PE-stamped engineering work.
No promised outcome. We do not promise that SBA, USDA or a credit committee will approve.

Should you hire a freelancer, a feasibility study company or use software?

Pick by who will read the study:

A marketplace freelancer fits a single-site study where you can check the person's relevant experience yourself, and can meet the same independence test as a firm.
A specialist feasibility study company, like us, fits when a lender, CDC or USDA will read the study: a named author, a written independence policy, a fixed fee and the eight-element structure.
Software or a template fits an internal go/no-go that no lender or agency will read. A study you write yourself is not independent of your business, which is where every definition above starts (our reading).

Feasibility studies by property type

Each guide below prices the study for that property type:

Assisted living facilities and nursing homes: under a USDA Community Facilities guaranteed loan, their projections "must be based on no more than 90 percent occupancy" (7 CFR 5001.304).
Hotels.
Funeral homes, crematoriums and cemeteries.
Gas stations and car washes.

Bakeries and childcare centers: a single-site study for a bank loan, landlord or internal go/no-go is our Essential tier, $3,900. Our bakery business plan and daycare business plan guides cover the plan itself.

SBA's list of Limited or Special Purpose Property examples names nursing homes (including assisted living), hotels, funeral homes with crematoriums, cemeteries, gas stations and car wash businesses. That list sets the 504 borrower's contribution (our free SBA 504 equity calculator works it out); it does not order a study. A study request turns on triggers such as a "Highly specialized Project property", and it is SBA's call.

Do I need a feasibility study at all?

You likely do not need one for a straightforward SBA 7(a) loan with no unusual concentration or property type: "feasibility" does not appear once in the SOP's 7(a) chapters, though 13 CFR 120.160(b) still lets SBA require a study on any business loan. Likewise if your USDA B&I guaranteed loan is $1,000,000.00 or less or the borrower is not a "new business" (the Agency may still ask); if a VAPG waiver applies, since under 7 CFR 4284.932 a simplified application "means submission of a Feasibility Study or Business Plan for the Project is not required"; or if your REAP grant is for energy efficiency. In the SBA 7(a) and B&I cases a well-built business plan with a credible financial model and honest market research is the cheaper document.

Need a plan, model or deck instead?

On a free 30-minute call or at (315) 226-7205 we work out which document your lender or agency is asking for. Our other services, at published list prices:

Business Plan Writing Services: $1,000, $1,800 or $2,800.
SBA Business Plan Writing Services: $1,000, $1,800 or $2,500. First check whether the SBA requires a business plan.
Financial Modeling Services: $750, $1,250 or $1,950.
Pitch Deck Services: $1,950, $2,950 or $3,950.

Frequently asked questions

How much does a feasibility study cost?

Business Plan Firm's feasibility study services are fixed-price: Essential $3,900, Standard $6,500, Premium $9,800, and complex multi-site work from $14,000. We never charge a percentage of anything you borrow, invest or raise. We print no market range, because we hold no verified figures for other feasibility study companies' fees.

Who is qualified to write a feasibility study?

Under 7 CFR 5001.3 a qualified consultant is an independent third-party person with the knowledge, expertise and experience for the task; where USDA's guaranteed loan rules require a study, the Agency must accept the consultant. Apart from one Community Facilities report, the federal rules we read set no license for a feasibility study consultant.

Can you write the study if you already wrote my business plan?

Not if we wrote that business plan in the last 24 months: under our independence policy we refer you to another firm instead. Business Plan Firm also takes no equity, no referral fees and no contingent fees.

Do I need a feasibility study for an SBA loan?

Not as a blanket rule. SOP 50 10 8.1 names five circumstances, such as market saturation, that may cause SBA to request a study on a 504 loan. 13 CFR 120.160(b) lets SBA require one on any business loan, and a bank's own lending policy may call for one.

When does USDA require a feasibility study?

Under 7 CFR 5001.306(a)(3)(i), a USDA Business and Industry guaranteed loan greater than $1,000,000.00 to a new business needs a study by an independent qualified consultant. Community Facilities draws the same line for a new entity, VAPG Working Capital Grants need one unless waived, and the Agency may still ask on any guaranteed loan.

Can a USDA loan or grant pay for the feasibility study?

On a USDA Business and Industry guaranteed loan, yes: 7 CFR 5001.121(c)(10) lists feasibility studies and business plans among the costs guaranteed loan funds may pay. A REAP renewable energy system or energy efficiency grant may not, under 7 CFR 4280.125(b)(7). A VAPG Planning Grant exists to pay for one, under 7 CFR 4284.903.

Is a feasibility study the same as a market study?

No. USDA's definition at 7 CFR 5001.3 makes market feasibility one of five tests, beside economic, technical, financial and management feasibility, and the study closes with an opinion on whether to proceed. The phrase "market study" appears zero times in SOP 50 10 8.1.

What if the answer is no?

If a Business Plan Firm feasibility study concludes "do not proceed", we deliver the study and the fee stands. The point of commissioning one before you commit capital is that a negative finding is a usable answer, not a failed deliverable.

Will my lender accept a study from you?

Business Plan Firm cannot promise that a lender, CDC or USDA office will accept a study; that decision is theirs. We build to independence, the eight-element federal structure and a named signature. Ask your loan officer, in writing, what they require before you commit.

Do I get the financial model as well?

Yes. Every Business Plan Firm feasibility study comes with the editable financial workbook behind the projections, not just a locked PDF, plus the source register with retrieval dates, so you and your lender can test the assumptions.

How do I start?

Book a free 30-minute call or phone (315) 226-7205. On the call we identify the program, whether a feasibility study is genuinely required, which tier fits and the fixed price. If you do not need a study, we say so.

How we verified this

Every quotation was checked by script against raw text retrieved on 30 October 2026; rules are stated as of that date.

SBA SOP 50 10 8.1, effective 1 October 2026, from the Word file on SBA's SOP 50 10 page (last updated 7 October 2026): Section C, Chapter 1, E. Credit Standards, 1. CDC Credit Memorandum, headings Independent Studies or Reports and Feasibility Studies.
13 CFR 120.160(b): CFR 2026 annual edition and current text.
7 CFR Part 5001, current text: 5001.3, 5001.121, 5001.303, 5001.304, 5001.306, 5001.307; CFR 2026 annual edition: 5001.121, 5001.303, 5001.304. Appendix A to Subpart D exists only as page images, so it was read from the CFR 2026 annual edition and is paraphrased.
VAPG, current text: 7 CFR 4284.903, 4284.931, 4284.932.
REAP final rule with comment period, 91 FR 62600, effective 16 October 2026. Comments close on 2 November 2026, so it may still change.
Federal Register, searched for changes to 7 CFR Parts 4280, 4284 and 5001 since 1 January 2025: none beyond the REAP rule touches feasibility studies.
12 CFR Part 34, Appendix A to Subpart D: current text.

Not verified, so left out: market price ranges and other firms' fees; how often SBA, lenders, CDCs or USDA ask for a study; whether SBA loan proceeds may pay for one.

General information as of 30 October 2026, not legal, lending or accounting advice, and no promise that any loan or grant will be approved. Confirm current requirements with your lender, CDC or USDA office. Prices and turnaround match our published price list.