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

📄 Contract Recurrence & Revenue Quality

• Are contracts fixed-fee, usage-based, or T&M (time & materials)?
• Are contracts auto-renewing or cancel-anytime?
• Are contract lengths and termination clauses disclosed?
• Is churn rate or average client tenure documented?

👨‍💻 Owner Dependency & Tech Labor

• Is the owner handling client escalations, major accounts, or technical service?
• Has a market-based wage been applied for owner tech labor?
• Are there trained staff or engineers with assigned roles?
• Are knowledge transfers or SOPs documented?

🔐 Licensing, Tools & Software Risks

• Are RMM, security, backup, or PSA tools licensed or owned?
• Can these tools be transferred to a buyer or are they personal/vendor-tied?
• Are recurring SaaS costs properly included in expenses?
• Is IP or custom software owned or white-labeled?

⚙️ CapEx, Systems & Scalability

• Are workstations, servers, or internal tech assets included or leased?
• Is deferred CapEx disclosed or normalized in free cash flow?
• Is there a CRM, ticketing system, or knowledge base in use?
• Is onboarding of new clients documented and repeatable?

🚩 Red Flags

• Owner is the primary engineer or escalation point
• Contracts are cancel-anytime or short-term with no retention data
• Tool stack includes personal logins, non-transferable licenses, or free tools
• No documented SOPs, SLAs, or onboarding protocols

📌 SBA SOP Tip

MSP underwriting must reflect normalized technical labor, sustainability of contract revenue, and licensing transferability. Underwriters should adjust for non-recurring revenue, reliance on owner-provided service, and required CapEx to maintain tech infrastructure.