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

👨‍💼 Owner Role + Licensing Dependency

• Is the owner a licensed master electrician?
• Do they personally handle service calls or estimates?
• Is a licensed replacement or transition plan in place?
• Has a fair market wage been substituted for technical labor?

📊 Revenue + Project Normalization

• Are jobs one-off projects or recurring maintenance contracts?
• Were any large or unusual contracts normalized?
• Is revenue subject to seasonality or client funding cycles?
• Are cost overruns, WIP, and completion adjustments reflected?

🏷️ CapEx and Equipment Inventory

• Are trucks, tools, lifts, or diagnostic equipment owned or leased?
• Are any items personally titled or retained by seller?
• Has CapEx been normalized into cash flow?
• Are aged or obsolete tools still on the books?

🚩 Customer Concentration + Risk

• Do top 1–3 clients represent more than 25% of revenue?
• Are long-term contracts or agreements in place?
• Will clients remain post-sale?
• Is there overreliance on GC referrals or public contracts?

📌 SBA SOP Tip

Electrical trades are often owner-dependent. Normalize project revenue, account for labor licensing, and include recurring CapEx to align with SBA valuation requirements.