Glossary · People and paperwork
Subcontractor
In short
A person or company hired by a primary contractor to perform a specific part of a larger project. They are not direct employees of the main business.
What it means in a deal
When analyzing a business that heavily relies on subcontractors, understand the contracts and dependencies. The SBA wants to ensure the business has stable operations, and an over-reliance on a few critical subcontractors could be a risk if those relationships aren't solid or transferable.
Related terms
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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