Glossary · Reading the business
Government contracting
In short
The process of a business selling goods or services to government agencies. It's a distinct revenue stream with specific rules.
What it means in a deal
If the target business relies heavily on government contracts, you must understand the contracting process, regulations, and how ownership change impacts existing contracts. Some government contracts may be non-assignable or require specific approvals post-acquisition, which is a major due diligence item.
Related terms
Common questions about Government contracting
- Is an SBA 7(a) loan directly from the government?
- What is the government's role in an SBA 7(a) loan?
- Does the government directly lend money for an SBA 7(a) loan?
- What does the government 'guaranty' mean for an SBA 7(a) loan?
- Is an SBA 7(a) loan actually lent directly by the government?
- Is an SBA 7(a) loan different from other types of government assistance?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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