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

Owner Involvement + Staff Dependency

• Is the owner providing direct care, scheduling, or client acquisition?
• Are staff caregivers full-time W-2, part-time, or 1099 contractors?
• Is staff capacity sufficient to maintain revenue post-sale?
• Has a replacement wage been applied for any owner caregiving duties?

Labor Compliance + Risk

• Are caregivers properly classified (W-2 vs. 1099)?
• Are any staffing agencies used?
• Are overtime, licensing, and state requirements met?
• Have labor violations or liability risks been disclosed or adjusted for?

Client Relationships + Goodwill Transfer

• Are client contracts or care agreements in place?
• Is revenue recurring or visit-based?
• Will clients remain post-sale without the owner?
• Has goodwill been tied to the enterprise or just the owner’s reputation?

Red Flags

• No W-2 staff or formalized caregiver team
• Owner performs most or all care work
• Goodwill assigned despite no client retention plan
• Misclassified labor or unadjusted compliance risks

SBA SOP Tip

Underwriters must consider normalized labor, regulatory compliance, and transferable goodwill. Solo practitioners rarely qualify as ongoing businesses without structured transitions.