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

Owner Role + Labor Normalization

• Is the owner the sole therapist or primary service provider?
• Are associate PTs or assistants employed and fairly compensated?
• Has a market-based wage been applied for owner-provided care?
• Is there a transition plan in place if the owner exits?

Payer Mix + Revenue Quality

• What percentage of revenue is insurance-based vs. private pay?
• Are payer mix and reimbursement delays clearly outlined?
• Are revenue streams recurring or episodic?
• Are visit volumes tracked digitally and reliably?

Patient Flow + Systems Review

• Are treatment plans or recurring sessions documented?
• Is a CRM or EHR used to track visit history and outcomes?
• Is there seasonality in patient intake (sports, school, etc.)?
• Are doctor or referral networks documented or owner-dependent?

CapEx + Facility Equipment

• Are therapy tables, exercise equipment, or software included?
• Has CapEx been normalized in free cash flow?
• Are any assets personally owned or deferred in maintenance?
• Are wellness or non-clinical tools included in valuation?

Red Flags

• Solo therapist with no staff support
• No tracking of visit frequency or patient retention
• Addbacks include wellness, travel, or personal equipment
• Overreliance on insurance reimbursements without normalization

SBA SOP Tip

PT clinics must reflect transferable patient care, documented visit data, and realistic CapEx needs. Owner-centric clinics with limited tracking or no associate team may not support FMV under SBA standards.