USDA feasibility study checklist generator.

A USDA feasibility study is an independent analytical report evaluating whether a proposed project is economically viable, technically sound, and financially capable of sustaining operations and meeting debt obligations over the life of a guaranteed loan. Under 7 CFR §5001.3, the study must be prepared by an independent qualified consultant and must address five codified components — economic, market, technical, financial, and management feasibility — as prescribed in Appendix A to Subpart D of 7 CFR Part 5001. The report must conclude with a recommendation and preparer qualifications. A USDA feasibility study is not a business plan, a pitch deck, or a market overview. It is an evidentiary document prepared for the USDA State Office, the lender, and any secondary-market participant that will rely on it to make a credit decision. The standard is independent analysis, not borrower advocacy.

Every USDA feasibility study must address five components as prescribed in Appendix A to Subpart D of 7 CFR Part 5001. Economic feasibility analyzes the cost-benefit relationship, minimum inputs required for successful operation, contracts in place and to be negotiated, environmental risks, and the broader economic impact including new markets and economic development. Market feasibility evaluates current and projected demand, competition, target market characteristics, end-user analysis distinguishing captive from competitive markets, by-product revenue streams, and industry risk. Technical feasibility addresses the reliability of the technology or service delivery model, commercial availability, success record of comparable projects, infrastructure requirements, labor market, materials availability, and construction risk. Financial feasibility models multi-year income, cash flow, and debt service coverage with documented management assumptions, peer benchmarking, working capital adequacy, and sensitivity analysis at a minimum of ±15% on revenue and expense assumptions. Management feasibility evaluates the legal structure, ownership composition, board governance, and the relevant professional experience of principals in the specific asset class and industry. A recommendation and preparer qualifications section must conclude every study. These five components are not optional — a USDA feasibility study that omits or superficially addresses any of them is grounds for the Agency to request a revised or replacement study.

Under 7 CFR §5001.3, a USDA feasibility study must be prepared by an independent qualified consultant — an independent third party with the knowledge, expertise, and experience to perform the specific task required. USDA does not maintain a pre-qualified preparer list. The State Office determines acceptability case by case, evaluating documented credentials and prior experience in the specific industry and asset class, absence of conflicts of interest, and no pattern of inadequate prior submissions. Independence is codified: a consultant acting as a compensated agent of both the borrower and the lender on the same guaranteed loan is disqualified. A loan packager with a contingent fee tied to approval is disqualified. For Community Facilities §5001.304(b) examination-opinion studies, the preparer must be a CPA with professional liability insurance operating under AICPA AT-C section 305. For REAP energy audits at or above $200,000 TPC, the preparer must hold one of four credentials: AEE Certified Energy Auditor; AEE Certified Energy Manager; state-licensed professional engineer with at least one year of experience and two comparable audits; or a four-year engineering or architectural degree with three or more years of experience and five comparable audits.

USDA feasibility study costs vary by program, loan size, asset class, and the analytical depth the State Office requires. USDA B&I feasibility studies for mid-market rural commercial projects typically range from $7,000 to $25,000. Community Facilities studies requiring a §5001.304(b) CPA examination opinion typically range from $15,000 to $40,000. REAP feasibility studies when ordered typically range from $7,000 to $15,000; the mandatory Appendix E technical report is generally priced separately at $5,000 to $12,000 depending on technology type and project complexity. Factors that increase cost include new business status, large loan amounts triggering heightened State Office scrutiny, complex technology platforms with limited comparable projects, and dual-program scope covering both USDA and SBA requirements. The investment in a properly scoped USDA feasibility study is typically 0.1% to 0.3% of total project cost.

USDA and SBA feasibility studies serve the same fundamental purpose — establishing an independent, evidence-based case for loan repayment — but differ materially in regulatory basis, scope prescription, and trigger logic. USDA B&I requirements are codified in 7 CFR Part 5001 with a mandatory threshold at $1,000,000 for new businesses and a prescribed five-component structure. SBA requirements derive from lender and CDC credit policy under SOP 50 10 8 (effective June 1, 2025) and are discretionary, with triggers based on risk factors including special-purpose property classification, startup status, new construction, and change of ownership. USDA codifies independence as a binding condition and specifically disqualifies dual-agent relationships. SBA implies independence as best practice without codifying it. Geography distinguishes the programs: USDA B&I requires the business to be in a rural area of 50,000 or fewer inhabitants; SBA has no geographic restriction. A study structured to the USDA five-component Appendix A standard will generally satisfy SBA's less-prescriptive expectation — dual-program compliance is achievable when structured correctly from the outset.