2-tech shop, Southeast market, Qualifier-only license
§ 01 · Observed
What was documented in diligence.
Owner holds the only HVAC master license in the operating jurisdiction. No licensed employee on staff, no Qualifier arrangement in place. Section 608 refrigerant recovery log showed R-410A purchases from distributor with no corresponding disposal log entries for trailing 18 months — approximately 180 lbs unaccounted. Workers comp audit reports showed HVAC payroll classified under NCCI 5183 (Plumbing) for trailing 2 years. Service agreement book: 95 PM-only agreements, no Comfort Club tier. AOR attach rate not tracked.
§ 02 · Outcome
What happened.
SBA lender declined to underwrite. License continuity could not be documented. Section 608 exposure quantified at potential $37,500–$124,426 per violation per day (40 CFR 19.4) — recovery log gaps representing multiple potential violations. Workers comp reclassification reserve estimated at $28K–$45K. Deal passed.
§ 03 · Structural Pattern
How this deal fits the four-pillar framework.
Three concurrent disqualifying conditions: (1) sole owner-held license with no transfer path, (2) Section 608 recovery log audit failure with quantifiable EPA exposure, (3) NCCI class code misclassification with back-premium liability. Any one of these is individually disqualifying at standard SBA underwriting; all three together produce a deal that fails regardless of pricing.
This is an anonymized composite drawn from observable structural patterns in the sample window. It is not a specific deal. The structural pattern, band placement, and outcome reflect commonly observed combinations; a future consented case study will replace this entry.
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