"“With over forty years of experience, he understands funding for golf courses and other income producing properties”"

M. Alviano, NC

Lending Update Winter 2015

Posted on Jan 5, 2015

It is very difficult to obtain a recreation loan in today’s uncertain economy.  While banks are leery of lending to recreational properties they are interested in government guarantee loans.

Funding for community centers, libraries, private schools, golf courses, ski resorts, hotels and other income-producing properties.

USDA CF program guarantees up to 90% of bank’s loan at a fixed or adjustable rate based on prime.  Term is 30 to 40 years.  If your project cannot be funded by USDA-CF, you may want to consider using B&I or SBA, who also guarantees loans with owners cosigning the loan.

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Typical procedure for USDA funding

Posted on Sep 9, 2012

The USDA guarantee loan program is complicated and confusing, but also can be flexible with different approaches. Our assignments are to complete a Feasibility Report to be shared with lenders, buyers or investors.  This includes several visits to the project and meetings with client,

lenders, nonprofits, attorneys and introduction to USDA. After an informal meeting, an Application is submitted to USDA area office, and they review reports / application, then forward to state office.  One can expect USDA to ask questions and most of their questions have been concerning the Bylaws, community support or Feasibility Report.

Required reports are typically completed within two months including:

  • Feasibility Report
  • Marketing Assessment
  • Design Review
  • Management Business Report

With each assignment I sign a Confidentially Agreement.   While I do use project’s name, I do not discuss financial aspects or status of our efforts with others. Clients do not want me to discuss their projects with outside parties.  When meeting with others I do not speak for my client, but I do speak on their behalf.  While responsible for my report, I cannot be responsible its use by others (lenders, government, investors).

Contact me to learn more….

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What is a Feasibility Report?

Posted on Jul 22, 2012

Spear Consultants, Ltd is a consulting firm assisting clients and prospects through the complex process of financing and refinancing income-producing projects.  With over forty-five years experience and over five hundred feasibility studies, our independent reports are customized to client needs and based on relevant market facts, informed judgment and common sense.   Our firm’s primary effort is a Feasibility Report to determine if it is feasible to finance a income-producing project in a given area and by what means: conventional, private, or public funding.

Spear Consultants’ Feasibility Reports details how the proposed project will be funded and if future projections are capable of supporting debt. This report identifies the profitable opportunities and known facts of a given project.  Our assignment and resulting report goes beyond the study of demographics and financial projections because we “customize” our report to meet client needs.

Feasibility Report determines and addresses:

  • will the project structure meet the goals of the client
  • the type and positioning of project that yields greatest potential
  • should the project be public, private or a resort
  • is their sufficient demand to support this project
  • management abilities and experience
  • an assessment of existing and proposed marketing activities
  • actual and projected costs to build, buy or renovate
  • projected income from it’s use and related on-site sales
  • projected expenses for buildings, maintenance and administration
  • is there sufficient cash flow to service debt and/or investor’s return
  • when does revenue stabilization occur
  • an acceptable debt to coverage ratio
  • certain assumptions realistic and attainable
  • different analysis’ address “what if” scenarios
  • revisions, if needed, will be completed at no charge
  • present or future ownership and proposed lender
  • assistance of owner with introduction to lenders and approval process


The cost of our services varies depending on research information available by client and is completed over several weeks.  Some clients know exactly what they need and appreciate Spear Consultants efforts and costs associated.  However, in the current economic climate and uncertain future, clients need to first get a practical understanding of what is a Spear Feasibility Report, and if a funding source is realistic.  In this situation Spear Consultants offers our expertise through a “Visitation and Review” assignment.

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