{"ok":true,"canonical_url":"https://dealroom.so/glossary/affiliated-party","api_url":"https://dealroom.so/api/public/glossary/affiliated-party","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-party","term":"Affiliated Party","group":"People and paperwork","definition":"This refers to individuals or entities that are related to or have control over the borrower or the target business. The SBA scrutinizes these relationships to ensure fair dealings and prevent conflicts of interest.","what_it_means":"The SBA has strict rules about affiliation, especially regarding business size and relationships between parties. If you or the seller have other businesses, or if there's common management or ownership, the SBA might deem them affiliated. This can impact eligibility, as the combined size of all affiliated businesses must still meet SBA size standards.","url":"https://dealroom.so/glossary/affiliated-party","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":"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"},{"slug":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"}],"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":"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":"Can a third-party loan, not from the seller, count towards the minimum equity injection?","url":"https://dealroom.so/sba-7a/questions/can-a-third-party-loan-not-from-the-seller-count-towards-the-minimum-equity-injection"},{"question":"What specific language must a non-SBA third-party standby agreement include to ensure eligibility?","url":"https://dealroom.so/for-lenders/questions/what-specific-language-must-a-non-sba-third-party-standby-agreement-include-to-ensure-elig"},{"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":"What specific circumstances allow a franchisor to be considered affiliated with a franchisee for SBA size purposes?","url":"https://dealroom.so/for-lenders/questions/what-specific-circumstances-allow-a-franchisor-to-be-considered-affiliated-with-a-franchis"}]},"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 Party","url":"https://dealroom.so/glossary/affiliated-party","source_type":"DealRoom Data"}}