{"ok":true,"canonical_url":"https://dealroom.so/glossary/associate-relationship","api_url":"https://dealroom.so/api/public/glossary/associate-relationship","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":"associate-relationship","term":"Associate Relationship","group":"People and paperwork","definition":"Any close connection between parties involved in the loan, like family members, business partners, or affiliates. The SBA scrutinizes these relationships to ensure arm's length transactions.","what_it_means":"The SBA defines \"associates\" broadly. If you're buying a business from a family member or a current partner, the SBA will require additional scrutiny and documentation, including a formal valuation, to ensure the deal is legitimate and fair. Disclose all relationships upfront to avoid delays.","url":"https://dealroom.so/glossary/associate-relationship","official_sources":[{"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"},{"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":"arm-s-length","term":"Arm's length","url":"https://dealroom.so/glossary/arm-s-length"},{"slug":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"},{"slug":"common-management","term":"Common management","url":"https://dealroom.so/glossary/common-management"}],"related_questions":[{"question":"Who specifically counts as an 'associate' for SBA business size checks?","url":"https://dealroom.so/sba-loans/basics/who-specifically-counts-as-an-associate-for-sba-business-size-checks"},{"question":"When does familial relationship between owners of separate businesses trigger affiliation for size?","url":"https://dealroom.so/for-lenders/questions/when-does-familial-relationship-between-owners-of-separate-businesses-trigger-affiliation-"},{"question":"When does a prior contractual relationship create affiliation for 7(a) size determination?","url":"https://dealroom.so/for-lenders/questions/when-does-a-prior-contractual-relationship-create-affiliation-for-7-a-size-determination"},{"question":"When does a contractual relationship between two businesses trigger affiliation for size standard calculations?","url":"https://dealroom.so/for-lenders/questions/when-does-a-contractual-relationship-between-two-businesses-trigger-affiliation-for-size-s"},{"question":"How does the SBA define an \"associate\" for affiliation purposes under 13 CFR 121?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-define-an-associate-for-affiliation-purposes-under-13-cfr-121"},{"question":"Does a shared familial relationship between business owners automatically trigger affiliation for SBA size standard calculations?","url":"https://dealroom.so/for-lenders/questions/does-a-shared-familial-relationship-between-business-owners-automatically-trigger-affiliat"}]},"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 — Associate Relationship","url":"https://dealroom.so/glossary/associate-relationship","source_type":"DealRoom Data"}}