Use this checklist to assess businesses in this industry for SBA 7(a) lending and underwriting.

👨‍💼 Owner Licensing + Labor Review

• Is the owner the only licensed therapist or counselor?
• Are there associate providers or billing staff?
• Has owner clinical labor been normalized?
• Are licenses transferable or will clients stay post-transition?

🏷️ Revenue Structure + Reimbursement Risk

• What % of revenue is insurance vs. private pay?
• Are reimbursements aged and normalized for delays?
• Are billing systems in place or done manually?
• Are services episodic or part of a treatment plan?

📊 Patient Volume + Practice Systems

• Is client retention tracked via software?
• Are referral sources documented?
• Are sessions logged consistently for continuity of care?
• Is practice management software used for scheduling, notes, and billing?

📄 CapEx + Wellness Spending

• Are any therapy tools or systems excluded from valuation?
• Has CapEx been normalized for furniture, software, or diagnostics?
• Are any wellness expenses personal vs. business-related?
• Are leasehold improvements included?

🚩 Red Flags

• Solo practitioner with no admin or provider support
• Cash or insurance reimbursements not verified
• Addbacks = apps, retreats, or family wages
• No EHR or outcome tracking system

📌 SBA SOP Tip

Behavioral health clinics must reflect transferable client care, verifiable revenue, and sustainable operations. Solo therapist practices with no infrastructure may not meet SBA FMV standards.