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

👨‍💼 Owner Labor & Front-End Dependency

• Is the owner managing front counter, customer service, or tagging?
• Has labor been normalized for replacement cost?
• Are actual operating hours disclosed?
• Does the business function without owner presence?

📊 Revenue Streams & Route Risk

• Is route revenue vs. walk-in revenue separated?
• Are contracts in place for delivery accounts?
• Are client concentrations disclosed?
• Are seasonal swings and promo discounts normalized?

🏷️ CapEx & Equipment Evaluation

• Are boilers, presses, spotting units, and washers in working condition?
• Is there deferred CapEx or aged equipment?
• Are CapEx assumptions included in cash flow?
• Is equipment owned or leased?

📄  Utilities & Environmental Factors

• Are utilities allocated appropriately for solvent disposal, steam, and water?
• Are environmental compliance or disposal permits required?
• Is solvent or chemical usage normalized?
• Is personal dry cleaning included in owner addbacks?

🚩 Red Flags

• Owner works counter with no labor replacement cost
• Boiler or pressing equipment aged or nonfunctional
• No breakdown of delivery vs. walk-in revenue
• Utilities understated or unnormalized

📌 SBA SOP Tip

SBA-compliant valuations for dry cleaners must adjust for owner involvement, utilities, CapEx, and route dependency. Solvent usage, equipment condition, and replacement costs must be reflected in free cash flow.