Worked Example: SBA 504 Change of Ownership Hotel Feasibility Study in Virginia
A worked example of the feasibility study a lender would read for a hotel project in Virginia, financed with an SBA 504 loan.
Feasibility Study Data for the Blacksburg-Christiansburg-Radford, VA Metro Area
What SBA's own loan files show about lending in the Blacksburg-Christiansburg-Radford, VA Metro Area, every asset class together, and what a feasibility study for a project there has to test.
Blacksburg in the SBA loan record
Blacksburg-Christiansburg-Radford, VA logged 156 SBA approvals in FY2017 to FY2026, worth $85.5 million in gross dollars. Blacksburg is a mid-table area: 361 of 928 by loans. In Blacksburg-Christiansburg-Radford, VA, every asset class is pooled for Blacksburg. That view of Blacksburg is missing from VA and national tables.
A Blacksburg median loan of $220,250 sits inside a middle half of $74,725 to $492,000. Blacksburg sits above the national level, at 1.06x the national median, so a Blacksburg study should size its request from Blacksburg approvals. In Blacksburg-Christiansburg-Radford, VA the 7(a) count is 143 and the 504 count is 13, which puts 7(a) ahead in Blacksburg. 16.0% of Blacksburg loans went to franchised businesses, so a Blacksburg study names the brand, if any, for Blacksburg.
Classes, counties and lenders in Blacksburg
Full-service restaurant (15 loans); hotel and motel (9 loans); limited-service restaurant (7 loans); dental office (6 loans) lead the tracked classes in Blacksburg. The 96 loans in no tracked class keep Blacksburg totals from reading as pure property; much Blacksburg borrowing funds operating businesses. Montgomery County, VA (106 loans), Pulaski County, VA (21 loans), and Floyd County, VA (12 loans) lead by county; a Blacksburg study names which county it covers. Blacksburg 7(a) lending is led by 24 loans at The First Bank and Trust Company ($6.2 million); 24 loans at First Community Bank (VA) ($3.9 million); 10 loans at Wells Fargo Bank National Association ($500,600). The First Bank and Trust Company, with 24 loans, tops the Blacksburg rows, each an SBA record of Blacksburg loans held or once held; none judges Blacksburg lenders.
Blacksburg goes from 16 loans in FY2017 to 15 in FY2026, ending lower: the peak was 27 in FY2025, and the trough 9 in FY2023. Blacksburg cancellation after approval runs at 14.9% as a floor for Blacksburg approvals, FY2017 to FY2024, and 14.9% as a ceiling that counts Blacksburg loans still undisbursed as cancelled. Blacksburg prints no charge-off floor: of 156 loans, the cohort is too thin. Blacksburg withholds it; withheld is not zero. Blacksburg-Christiansburg-Radford, VA membership follows the July 2023 delineation; Blacksburg counties are matched by name, and a Blacksburg loan with no match is dropped, so 156 is a floor, and every Blacksburg rate is too.
Blacksburg: what a study has to test
A Blacksburg feasibility study begins with Blacksburg demand from the right counties: Montgomery County, VA leads the loan counts, though Blacksburg is wider. If a Blacksburg concept resembles full-service restaurant, Blacksburg offers size and lender precedent; other Blacksburg concepts must rest on their own Blacksburg evidence. Blacksburg quotes should price construction and equipment. Then Blacksburg debt service coverage is tested at $220,250, and again at $492,000. Blacksburg is metropolitan, so submarkets differ, and a Blacksburg appraisal should use the site's own Blacksburg submarket comparables. Nothing printed for Blacksburg predicts approval; each Blacksburg lender still reviews a study.
SBA loans in the Blacksburg-Christiansburg-Radford, VA Metro Area
| Loans approved, FY2017 to FY2026 | 156 |
|---|---|
| Gross dollars approved | $85.5 million |
| Median loan | $220,250 |
| Middle half of loans, from | $74,725 |
| Middle half of loans, to | $492,000 |
| SBA 7(a) loans | 143 |
| SBA 504 loans | 13 |
| Franchise share of loans | 16.0% |
| Rank among metro and micro areas by loans | 361 of 928 |
| Median loan against the national median | 1.06x |
Cancellation and charge-off
| Cancelled after approval, FY2017 to FY2024 approvals (a floor) | 14.9% |
|---|---|
| The same, counting loans still undisbursed as cancelled (a ceiling) | 14.9% |
| Charged off to date, FY2017 to FY2021 disbursed loans (a floor) | withheld |
Both rates are floors. SBA withholds the status of open loans, so a loan counts as charged off only once SBA reports it; a rate needs at least 30 loans in its cohort and is otherwise not reported.
SBA loans approved in the Blacksburg-Christiansburg-Radford, VA Metro Area, by fiscal year
| Fiscal year | Loans | Dollars |
|---|---|---|
| FY2017 | 16 | $8.6 million |
| FY2018 | 15 | $4.8 million |
| FY2019 | 12 | $3.2 million |
| FY2020 | 15 | $5.8 million |
| FY2021 | 19 | $6.0 million |
| FY2022 | 10 | $10.9 million |
| FY2023 | 9 | $4.8 million |
| FY2024 | 18 | $10.0 million |
| FY2025 | 27 | $19.2 million |
| FY2026 | 15 | $12.2 million |
Loans by asset class
| Asset class | Loans |
|---|---|
| Not in any of the 39 asset classes | 96 |
| Full-service restaurant | 15 |
| Hotel and motel | 9 |
| Limited-service restaurant | 7 |
| Dental office | 6 |
Classes with 5 or more loans; smaller ones are withheld, and more where a small one could be derived.
Most active SBA lenders
| Lender | Loans | Dollars |
|---|---|---|
| The First Bank and Trust Company | 24 | $6.2 million |
| First Community Bank (VA) | 24 | $3.9 million |
| Wells Fargo Bank National Association | 10 | $500,600 |
| The National Bank of Blacksburg | 7 | $960,700 |
| Atlantic Union Bank | 6 | $757,000 |
Lenders with 5 or more loans here; a lender with fewer is not listed, and loans SBA or a receiver holds are counted but never listed as a lender.
Where the loans are, by county
| County | Loans |
|---|---|
| Montgomery County, VA | 106 |
| Pulaski County, VA | 21 |
| Floyd County, VA | 12 |
| Radford city, VA | 11 |
| Giles County, VA | 6 |
Counties with 5 or more loans; smaller ones are not listed.
Metro is the CBSA (metropolitan or micropolitan statistical area) of the loan's project county, July 2023 delineation (OMB Bulletin 23-01). The county is matched by name (manifests/ld2/county-cbsa-map.csv); a loan whose county cannot be placed in a 2023 CBSA is left out of every metro.
All assets: every 7(a) and 504 approval in the metro, including those outside the 39 asset classes.
A value marked withheld rests on fewer than 5 loans, or is withheld so that such a figure cannot be derived from other published figures.
Source: U.S. Small Business Administration, 7(a) and 504 loan-level FOIA files (data.sba.gov), as of 2026-09-30; areas from the U.S. Census Bureau CBSA delineation, July 2023 (OMB Bulletin 23-01); Loan Analytics metro cell MT-13980.
Related feasibility study pages
- Virginia feasibility study consultant
- Feasibility Study Data by Metro Area
- Feasibility studies for SBA 7(a) and 504 loans
- Feasibility Study Data for the Virginia Beach-Chesapeake-Norfolk, VA-NC Metro Area
- Feasibility Study Data for the Richmond, VA Metro Area
- Feasibility Study Data for the Roanoke, VA Metro Area
- Feasibility Study Data for the Charlottesville, VA Metro Area
- Feasibility Study Data for the Lynchburg, VA Metro Area
- Feasibility Study Data for the Winchester, VA-WV Metro Area
- Feasibility Study Data for the Harrisonburg, VA Metro Area
Worked examples
Loan Analytics prepares the feasibility study a lender reads before it commits: for a commercial project in the Blacksburg-Christiansburg-Radford, VA Metro Area, financed under SBA 7(a), SBA 504, USDA Business and Industry or a conventional bank loan. Tell us the project and the lender's deadline, and we reply with scope, timeline and fee.
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