{"ok":true,"canonical_url":"https://dealroom.so/glossary/government-contracts","api_url":"https://dealroom.so/api/public/glossary/government-contracts","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"government-contracts","term":"Government contracts","group":"Reading the business","definition":"These are agreements where the business provides goods or services to federal, state, or local government entities. They can be stable revenue, but come with strict rules and potential risks.","what_it_means":"If the target business relies heavily on government contracts, you need to understand the terms, renewal likelihood, and any specific compliance requirements. These contracts often have unique payment processes and transferability issues that impact your cash flow post-acquisition.","url":"https://dealroom.so/glossary/government-contracts","official_sources":[],"related":[{"slug":"federal-assignment-of-claims-act","term":"Federal Assignment of Claims Act","url":"https://dealroom.so/glossary/federal-assignment-of-claims-act"},{"slug":"assignment-of-claims","term":"Assignment of claims","url":"https://dealroom.so/glossary/assignment-of-claims"},{"slug":"revenue-concentration","term":"Revenue concentration","url":"https://dealroom.so/glossary/revenue-concentration"}],"related_questions":[{"question":"What if the business I'm acquiring relies heavily on government contracts for revenue?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-acquiring-relies-heavily-on-government-contracts-for-revenue"},{"question":"What if the collateral for a 7(a) loan includes accounts receivable from government contracts?","url":"https://dealroom.so/for-lenders/questions/what-if-the-collateral-for-a-7-a-loan-includes-accounts-receivable-from-government-contrac"},{"question":"What happens if a significant portion of the acquired business's revenue is generated from government contracts?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-a-significant-portion-of-the-acquired-business-s-revenue-is-generated-from"},{"question":"How does the SBA 7(a) loan program value and take collateral on accounts receivable from government contracts?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-7-a-loan-program-value-and-take-collateral-on-accounts-receivable-from-go"},{"question":"Can an SBA 7(a) loan be used to purchase a business where significant revenue comes from government contracts?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-purchase-a-business-where-significant-revenue-comes-from-go"},{"question":"What specific conditions allow a lender to approve a 7(a) loan for a business relying heavily on government contracts?","url":"https://dealroom.so/for-lenders/questions/what-specific-conditions-allow-a-lender-to-approve-a-7-a-loan-for-a-business-relying-heavi"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Government contracts","url":"https://dealroom.so/glossary/government-contracts","source_type":"DealRoom Data"}}