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

Owner Labor + Crew Review

• Does the owner perform field work, sales, and/or supervision?
• Has owner compensation been normalized to reflect true labor needs?
• Are there documented employees or just seasonal labor?
• Is route coverage sustainable post-sale?

CapEx and Equipment Review

• Are trucks, trailers, mowers, and tools near end-of-life?
• Is normalized CapEx included in free cash flow?
• Is depreciation a fair proxy or is CapEx deferred?
• Are any assets leased, retained by seller, or undocumented?

Revenue and Customer Mix

• What % of revenue is residential vs. commercial?
• Are contracts in place or is work informal/repeat?
• Are routes or client lists documented?
• Is revenue seasonal or smoothed inappropriately?

Red Flags

• Addbacks for trailers, fuel, phones, or family wages with no backup
• Owner doing all labor with no staff to support transition
• Zero CapEx in an asset-heavy service business

SBA SOP Tip

Sustainable cash flow in green industries must reflect equipment lifecycle, seasonality, and the cost to replace owner labor—not just past deposits.