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

Owner Dependency + Credentialing

• Is the owner the sole provider of billable services?
• Can another licensed professional step in immediately?
• Are there credentialing, NPI, or license-transfer barriers?
• Has a fair market salary been substituted for owner services?

Payer Mix + Revenue Review

• What percentage of revenue is from Medicaid, Medicare, private pay?
• Are there reimbursement delays or denials impacting cash flow?
• Is revenue recurring or one-time visit-based?
• Has revenue quality been adjusted for slow payers or write-offs?

Staffing + Billing Infrastructure

• Are billing, admin, and support roles fully staffed?
• Is billing in-house or outsourced?
• Are denial rates or aging reports available?
• Is there an EHR or practice management system in place?

Goodwill + Transferability

• Is goodwill tied to the owner’s reputation or brand?
• Will patients stay post-sale?
• Are referral networks documented or personal?
• Has a transition period been proposed or valued?

SBA SOP Tip

Medical practices must reflect replaceable labor, reliable payer income, and transferable goodwill. Solo practices without infrastructure are high risk.