{"ok":true,"canonical_url":"https://dealroom.so/glossary/affiliated-business","api_url":"https://dealroom.so/api/public/glossary/affiliated-business","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":"affiliated-business","term":"Affiliated Business","group":"Reading the business","definition":"This refers to another business that is controlled by or shares common ownership or management with the target business. Buyers must understand affiliation rules because they impact SBA size standards and eligibility.","what_it_means":"The SBA has strict affiliation rules to determine if a business, when combined with others, exceeds size standards for the 7(a) program. This is critical if you or the seller have other businesses. Disclose all potential affiliations upfront to your lender to avoid eligibility issues.","url":"https://dealroom.so/glossary/affiliated-business","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"}],"related":[{"slug":"affiliation","term":"Affiliation","url":"https://dealroom.so/glossary/affiliation"},{"slug":"size-standard","term":"Size standard","url":"https://dealroom.so/glossary/size-standard"},{"slug":"common-management","term":"Common management","url":"https://dealroom.so/glossary/common-management"},{"slug":"negative-control","term":"Negative control","url":"https://dealroom.so/glossary/negative-control"}],"related_questions":[{"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":"What specific criteria determine if two businesses are affiliated due to 'identity of interest' for size standards?","url":"https://dealroom.so/for-lenders/questions/what-specific-criteria-determine-if-two-businesses-are-affiliated-due-to-identity-of-inter"},{"question":"How does the SBA determine if multiple businesses are affiliated for size standard purposes based on common ownership?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-determine-if-multiple-businesses-are-affiliated-for-size-standard-purpose"},{"question":"What is the maximum loan amount an affiliated group of businesses can receive under the 7(a) program?","url":"https://dealroom.so/for-lenders/questions/what-is-the-maximum-loan-amount-an-affiliated-group-of-businesses-can-receive-under-the-7-"},{"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"},{"question":"What is the maximum amount of money a single borrower or group of affiliated businesses can owe across all SBA 7(a) loans?","url":"https://dealroom.so/sba-7a/questions/what-is-the-maximum-amount-of-money-a-single-borrower-or-group-of-affiliated-businesses-ca"}]},"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 — Affiliated Business","url":"https://dealroom.so/glossary/affiliated-business","source_type":"DealRoom Data"}}