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

Owner Role + Licensing Review

• Is the owner the only licensed plumber?
• Do they perform service calls, estimates, dispatch, or scheduling?
• Has labor been normalized to include replacement plumbers?
• Will the business retain licensing and certifications post-sale?

Revenue + Job Flow Assessment

• Is revenue based on recurring service or one-time jobs?
• Are customer relationships ongoing or project-specific?
• Have peak season jobs or one-time projects been normalized?
• Are large jobs or contracts backed by documentation?

CapEx and Equipment Inventory

• Are work vans, tools, jetters, and diagnostics owned or leased?
• Has normalized CapEx been included in free cash flow?
• Are any tools or vehicles excluded from valuation?
• Is depreciation a reliable CapEx proxy?

Red Flags

• No W-2 staff and owner provides all billable labor
• Tools/vehicles are leased personally or omitted
• Addbacks include personal phone, fuel, or home utilities
• Licensing is not transferable or tied to the seller only

SBA SOP Tip

Plumbing businesses must reflect transferable licensing, realistic labor costs, and sustainable revenue. Normalize CapEx and adjust for one-person operations.