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

Owner Role + Labor Structure

• Does the owner manage growing, retail, and event functions?
• Are farm staff or retail employees in place?
• Has labor been normalized for market roles?
• Is the business reliant on owner horticultural skill?

Revenue + Seasonality Normalization

• Is revenue tied to spring or seasonal cycles?
• Are events (farm tours, workshops) recurring or ad hoc?
• Are revenue dips in Q3–Q4 normalized?
• Is customer traffic tracked and segmented?

Inventory + CapEx Treatment

• Are live goods (plants, seeds) inventoried properly?
• Are irrigation systems, greenhouses, and equipment capitalized?
• Are personally owned farm tools included?
• Is product obsolescence or spoilage reflected?

Property Use + Real Estate Clarity

• Is land used for both business and personal use?
• Are lease terms documented or included in value?
• Is the business operating on residentially zoned property?
• Are there environmental or code considerations?

Red Flags

• Owner is sole grower, vendor, and event host
• Addbacks include tools, irrigation, or family labor
• Spring spikes not normalized in cash flow
• Real estate co-mingled with personal land use

SBA SOP Tip

Garden and urban farm underwriters must normalize for seasonality, separate real estate use, and reflect sustainable owner labor replacement. Inventory must be accurately valued and perishable assets disclosed.