SBA 7(a) Q&A
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.
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.
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.
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.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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