{"ok":true,"canonical_url":"https://dealroom.so/glossary/know-your-customer","api_url":"https://dealroom.so/api/public/glossary/know-your-customer","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":"know-your-customer","term":"Know Your Customer","group":"People and paperwork","definition":"Aka: KYC. This is a mandatory process where lenders verify a borrower's identity, financial history, and source of funds to comply with anti-money laundering laws. It's a rigorous part of SBA loan underwriting.","what_it_means":"Expect to provide extensive personal and financial documentation, including bank statements, tax returns, and explanations for any large deposits. For foreign-sourced equity, KYC is particularly thorough, requiring detailed proof of fund origins. Be proactive in gathering all requested information to avoid delays.","url":"https://dealroom.so/glossary/know-your-customer","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"foreign-sourced-equity-injection","term":"Foreign-Sourced Equity Injection","url":"https://dealroom.so/glossary/foreign-sourced-equity-injection"},{"slug":"personal-financial-statement","term":"Personal financial statement","url":"https://dealroom.so/glossary/personal-financial-statement"},{"slug":"bank-statement","term":"Bank Statement","url":"https://dealroom.so/glossary/bank-statement"}],"related_questions":[{"question":"How do I know if my business is 'small' enough to qualify for an SBA loan?","url":"https://dealroom.so/sba-loans/basics/how-do-i-know-if-my-business-is-small-enough-to-qualify-for-an-sba-loan"},{"question":"Can a high customer concentration (e.g., one customer is 50% of revenue) jeopardize my SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/can-a-high-customer-concentration-e-g-one-customer-is-50-of-revenue-jeopardize-my-sba-7-a-"},{"question":"What if the business I'm acquiring relies heavily on a single major customer?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-acquiring-relies-heavily-on-a-single-major-customer"},{"question":"How does the SBA typically value intangible assets like customer lists or software for collateral?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-typically-value-intangible-assets-like-customer-lists-or-software-for-col"},{"question":"How does high customer concentration in a target business affect SBA 7(a) acquisition loan approval?","url":"https://dealroom.so/sba-7a/questions/how-does-high-customer-concentration-in-a-target-business-affect-sba-7-a-acquisition-loan-"},{"question":"What specific factors should a lender assess when underwriting a business with a high customer concentration?","url":"https://dealroom.so/for-lenders/questions/what-specific-factors-should-a-lender-assess-when-underwriting-a-business-with-a-high-cust"}]},"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 — Know Your Customer","url":"https://dealroom.so/glossary/know-your-customer","source_type":"DealRoom Data"}}