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

👷 Owner Dependency & Estimating Risk

• Is the owner writing estimates, supervising crews, or dispatching jobs?
• Has a market-based wage been applied to replace the owner’s field role?
• Are estimating software, CRM, or job tracking systems in place and transferrable?
• Is there a documented process for job intake and dispatch?

🌪️ Revenue Seasonality & Event Dependency

• Are revenues consistent or tied to weather events (storms, floods, fires)?
• Is any major revenue spike attributed to a single insurance event or disaster year?
• Are recurring contracts or property management relationships in place?
• Have peak seasons been normalized in cash flow projections?

🚛 Equipment, Vehicles & CapEx

• What is the age and condition of service vehicles, drying equipment, or tools?
• Are CapEx reserves included for replacement of trucks and restoration gear?
• Is depreciation realistic, or masking long-term replacement needs?
• Is leased equipment properly disclosed and normalized in cash flow?

📊 Addbacks & Contract Risk

• Do addbacks include vehicle depreciation, family bonuses, or vague line items?
• Is there documentation for subcontractor payments vs. owner labor?
• Are any recurring revenue sources or contracts formally documented?
• Is goodwill dependent on personal referrals or insurance adjuster relationships?

🚩 Red Flags

• Owner handles estimating, scheduling, and project oversight personally
• Major revenue tied to one disaster or storm event
• Addbacks include vehicle depreciation, family payroll, or unverified expenses
• No contracts, CRM, or job tracking system in use

📌 SBA SOP Tip

Restoration underwriting must normalize for owner labor, event-based revenue spikes, and aging equipment. CapEx assumptions, formal job tracking, and recurring relationships support sustainable value.