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

Owner Dependency + Labor Normalization

• Is the owner cleaning homes or coordinating client schedules?
• Have fair market wages been applied for administrative or cleaning duties?
• Are staff paid legally as W-2 or misclassified as 1099?
• Is the workforce stable or highly seasonal/temporary?

Revenue Quality + Client Base

• Is revenue recurring (subscriptions) or one-off?
• Are customer lists or CRMs used to track churn?
• How much is booked via informal channels (text, social media)?
• Are contracts in place for recurring clients?

CapEx + Equipment Review

• Are vehicles, vacuums, and cleaning gear included?
• Has CapEx for replacements been normalized?
• Are any items personally owned or seller-retained?
• Are there signs of underinvestment in key equipment?

Red Flags

• Owner performs cleaning or customer coordination full-time
• Cash pay or 1099 staff without clear records
• Addbacks include personal vehicle use, meals, or family payroll
• No formal CRM or client tracking system in place

SBA SOP Tip

Cleaning companies must reflect normalized labor, proper classification of employees, and recurring customer value. Solo operators or cash-based firms have higher risk.