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

Owner Dependency & Relationship Risk

• Is the owner the primary contact for clients or HOAs?
• Are key relationships institutionalized or personal?
• Can accounts transfer without owner involvement?
• Have hours and duties been normalized in cash flow?

Client Contracts & Retention

• Are service agreements written or verbal?
• Are contracts auto-renewing or cancel-anytime?
• What’s the client concentration (top 5 accounts)?
• Is historical retention and renewal data available?

Revenue Streams & Fee Structure

• Are management fees vs. leasing commissions broken out?
• Is maintenance revenue internal or subcontracted?
• Are markups transparent and recurring?
• Are HOA, vacation rental, and tenant billing models clear?

Payroll + Addbacks Review

• Are staff salaries, owner wages, and family roles disclosed?
• Are addbacks used for travel, perks, or vehicle reimbursements?
• Have replacement costs for management roles been applied?
• Is administrative labor documented and normalized?

Tech Stack & CapEx

• Is there a client portal, software system, or mobile app?
• Are these owned, licensed, or included in the sale?
• Is deferred CapEx required to modernize tech?
• Is CapEx normalized in the valuation model?

Red Flags

• Verbal or cancel-anytime client contracts
• Owner manages all client/board relationships
• Addbacks = family payroll, perks, or unreimbursed travel
• No software or tech platform included
• Revenue is concentrated in few accounts

SBA SOP Tip

SBA underwriting must consider contract retention risk, normalize owner labor, and account for recurring vs. project revenue. Ensure client relationships, systems, and staffing are transferable.