{"ok":true,"canonical_url":"https://dealroom.so/glossary/affiliate","api_url":"https://dealroom.so/api/public/glossary/affiliate","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"affiliate","term":"Affiliate","group":"People and paperwork","definition":"An affiliate is a business or person connected to the borrower or seller, often through ownership, management, or contractual relationships. The SBA considers affiliates when determining size standards and eligibility for a 7(a) loan.","what_it_means":"The SBA's affiliation rules are complex; if you or the seller have other businesses, the SBA will aggregate their financials to determine if the combined entity meets size standards. This can make an otherwise eligible business ineligible, so disclose all potential affiliations.","url":"https://dealroom.so/glossary/affiliate","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"},{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"affiliation","term":"Affiliation","url":"https://dealroom.so/glossary/affiliation"},{"slug":"common-management","term":"Common management","url":"https://dealroom.so/glossary/common-management"},{"slug":"size-standard","term":"Size standard","url":"https://dealroom.so/glossary/size-standard"},{"slug":"negative-control","term":"Negative control","url":"https://dealroom.so/glossary/negative-control"}],"related_questions":[{"question":"How does a lender handle an SBA 7(a) loan where the borrower intends to lease property from an affiliate?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-handle-an-sba-7-a-loan-where-the-borrower-intends-to-lease-property-from"},{"question":"What are the implications for a lender if the SBA discovers an undisclosed affiliate post-closing on a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-are-the-implications-for-a-lender-if-the-sba-discovers-an-undisclosed-affiliate-post-"},{"question":"What are the personal guaranty requirements for owners and affiliates?","url":"https://dealroom.so/sba-7a/questions/what-are-the-personal-guaranty-requirements-for-owners-and-affiliates"},{"question":"What is the maximum aggregate outstanding loan amount for a single 7(a) borrower, including affiliates?","url":"https://dealroom.so/for-lenders/questions/what-is-the-maximum-aggregate-outstanding-loan-amount-for-a-single-7-a-borrower-including-"},{"question":"Are businesses with shared facilities or equipment considered affiliated for SBA size standards?","url":"https://dealroom.so/for-lenders/questions/are-businesses-with-shared-facilities-or-equipment-considered-affiliated-for-sba-size-stan"},{"question":"How does the SBA determine 'small business' size for an applicant with multiple affiliated entities?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-determine-small-business-size-for-an-applicant-with-multiple-affiliated-e"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Affiliate","url":"https://dealroom.so/glossary/affiliate","source_type":"DealRoom Data"}}