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

🧑‍🔧 Owner Dependency & Labor Normalization

• Is the owner performing driving, dispatch, or maintenance duties?
• Has a market-based wage been applied for any owner labor?
• Are backup drivers or dispatchers on staff and paid at market rates?
• Is there a transition plan for owner replacement?

💸 Payer Mix & Reimbursement Risk

• What portion of revenue comes from Medicaid, brokers, or private pay?
• Are delays or denial rates from Medicaid/brokers disclosed?
• Is reimbursement data normalized for timing lags or clawbacks?
• Are contracts formalized and transferable?

🚐 CapEx & Fleet Condition

• What is the age and mileage of each vehicle in the fleet?
• Have vehicle replacement costs been included in cash flow?
• Are vehicles wheelchair/ADA compliant and properly insured?
• Is there a documented CapEx schedule or fleet maintenance plan?

💻 Systems, Compliance & Operations

• Is dispatch software or GPS routing used?
• Are logs of trips, mileage, and driver schedules maintained?
• Is the business compliant with state NEMT, DOT, and insurance regulations?
• Is the business integrated with healthcare systems or brokers?

🚩 Red Flags

• Owner drives most or all shifts
• Fleet consists of aging vehicles with no CapEx reserves
• Reimbursement delays or denials not adjusted
• No route logs, trip records, or dispatch software
• Payer mix heavily concentrated in Medicaid or a single broker

📌 SBA SOP Tip

SBA underwriters must normalize owner labor, assess fleet condition and CapEx, and reflect reimbursement risk. Payer mix, ADA compliance, and operational continuity are key to determining sustainable cash flow.