{"ok":true,"canonical_url":"https://dealroom.so/glossary/affiliation-issues","api_url":"https://dealroom.so/api/public/glossary/affiliation-issues","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":"affiliation-issues","term":"Affiliation Issues","group":"Reading the business","definition":"These arise when the SBA determines that two or more businesses are linked by common ownership, management, or contractual relationships. This can combine their size, potentially making the combined entity too large for an SBA loan.","what_it_means":"The SBA applies complex affiliation rules to determine if a business is \"small.\" If the target business is affiliated with others, their revenues or employees are aggregated for size standard purposes. This is a common pitfall; ensure a thorough review of all related entities and agreements to avoid eligibility problems.","url":"https://dealroom.so/glossary/affiliation-issues","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":"size-standard","term":"Size standard","url":"https://dealroom.so/glossary/size-standard"},{"slug":"employee-based-size-standards","term":"Employee-Based Size Standards","url":"https://dealroom.so/glossary/employee-based-size-standards"},{"slug":"naics-code","term":"NAICS code","url":"https://dealroom.so/glossary/naics-code"}],"related_questions":[{"question":"Which criminal history issues commonly prevent SBA loan approval?","url":"https://dealroom.so/sba-7a/questions/which-criminal-history-issues-commonly-prevent-sba-loan-approval"},{"question":"How do criminal history issues commonly prevent SBA loan approval?","url":"https://dealroom.so/for-lenders/questions/how-do-criminal-history-issues-commonly-prevent-sba-loan-approval"},{"question":"What criminal history issues might prevent SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/what-criminal-history-issues-might-prevent-sba-7-a-loan-approval"},{"question":"What specific criminal history issues are automatic disqualifiers for SBA loan eligibility?","url":"https://dealroom.so/sba-7a/questions/what-specific-criminal-history-issues-are-automatic-disqualifiers-for-sba-loan-eligibility"},{"question":"What if the business for acquisition has a history of environmental contamination issues?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-for-acquisition-has-a-history-of-environmental-contamination-issues"},{"question":"What if the acquired business has environmental contamination issues discovered during due diligence?","url":"https://dealroom.so/sba-7a/questions/what-if-the-acquired-business-has-environmental-contamination-issues-discovered-during-due"}]},"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 — Affiliation Issues","url":"https://dealroom.so/glossary/affiliation-issues","source_type":"DealRoom Data"}}