I'm looking at a graphic design company where 80%+ of the revenue is coming from the top three client relationships. The business only has about 18 clients and does corporate print projects in a particular niche. The seller is also still spending about 50% of their time working 'in' the business in a creative director role, despite having other employees.

My question to the SBA lenders here (and anyone with first hand experience), is this sort of client concentration on a asset-light service business something that most (if not all) SBA lenders would shy away from? I would personally look to use seller financing with an earnout for 50% or more of the deal to insure the seller does their part to assist with the transition of these client relationships. I don't think it's a good deal to personally guarantee a fixed payment loan of any kind on something like this, even if a lender were to approve one. My appetite for risk isn't there but I'm curious if lenders would agree or not. The selling broker feels this is stable enough to go SBA but I'm wondering if that is really the case.