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

Owner Dependency + Service Risk

• Does the owner handle grooming, boarding intake, or customer service?
• Are staff W-2 employees, 1099 contractors, or unpaid family?
• Has labor been normalized with market wages for groomers and kennel staff?
• Is goodwill tied to the owner’s name or to the business brand?

Revenue + Seasonality Adjustment

• Is income recurring or highly seasonal (e.g., holidays, summer)?
• Are seasonal spikes normalized in cash flow?
• Are repeat clients tracked via software or manually?
• Are price points consistent or highly discounted to drive traffic?

Facility CapEx + Condition

• Are kennels, HVAC, grooming stations, and dryers in working condition?
• Has CapEx been normalized in free cash flow?
• Is there deferred maintenance or upgrade needs noted?
• Are any facilities leased, shared, or on residential property?

Red Flags

• Owner performs most or all grooming/customer contact
• Cash-based payments or lack of customer tracking
• No CapEx in years + visible facility wear and tear
• Addbacks include dog food, supplies, or personal pet expenses

SBA SOP Tip

Pet care businesses must reflect sustainable service capacity, seasonal normalization, and transferable value. One-person brands or family-run shops require careful adjustment.