{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-acquire-a-business-that-relies-heavily-on-a-single-major-cust","api_url":"https://dealroom.so/api/public/questions/can-i-use-an-sba-7-a-loan-to-acquire-a-business-that-relies-heavily-on-a-single-major-cust","question":"Can I use an SBA 7(a) loan to acquire a business that relies heavily on a single major customer?","topic":"Customer Concentration Risk","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, but acquiring a business heavily reliant on a single major customer can be a significant risk factor that lenders will scrutinize closely, potentially impacting loan approval.","rule":"Lenders assess customer concentration risk as a key factor in business stability. While not an automatic disqualifier, an over-reliance on one customer (e.g., more than 20-30% of revenue) raises concerns about the business's vulnerability if that customer is lost. The lender will seek mitigating factors.","example":"If the business you want to acquire for $750,000 generates 60% of its revenue from one client, the lender will likely require a long-term contract with that client or evidence of efforts to diversify the customer base to mitigate the risk.","what_lenders_check":"Lenders are concerned about the sustainability of revenue and cash flow if a major customer departs. They will look for strong customer relationships, long-term contracts, or a clear strategy for diversification to approve such a loan.","required_facts":["Customer concentration","Revenue risk","Business stability","Mitigating factors"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"}],"related_questions":[],"related_terms":[{"term":"SBA 7(a) loan","url":"https://dealroom.so/glossary/sba-7-a-loan"},{"term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"term":"SBA 7(a) Loan Program","url":"https://dealroom.so/glossary/sba-7-a-loan-program"},{"term":"SBA 7(a) loan guaranty","url":"https://dealroom.so/glossary/sba-7-a-loan-guaranty"},{"term":"SBA 7(a) program","url":"https://dealroom.so/glossary/sba-7-a-program"},{"term":"Standard 7(a) loan","url":"https://dealroom.so/glossary/standard-7-a-loan"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-acquire-a-business-that-relies-heavily-on-a-single-major-cust","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}