SBA 7(a) Q&A
Short answer
Lenders review key customer contracts, supplier agreements, and service agreements to assess business stability, revenue predictability, and potential risks associated with customer concentration or expiring contracts.
While not explicitly detailed in boilerplate SBA forms, prudent lending standards require lenders to assess the underlying operational health and stability of the acquired business. Analyzing contracts and customer relationships helps gauge revenue sustainability and identify potential vulnerabilities beyond financial statements.
For a business heavily reliant on a few large clients, the lender will request copies of those client contracts to verify terms, duration, and renewal history, assessing the risk of losing significant revenue post-acquisition.
Insider move
Lenders are concerned about customer concentration risk, expiring key contracts, and any terms within contracts that could negatively impact the acquired business's future cash flow or profitability.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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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