{"ok":true,"canonical_url":"https://dealroom.so/glossary/close-family-relationship","api_url":"https://dealroom.so/api/public/glossary/close-family-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":"close-family-relationship","term":"Close family relationship","group":"The loan itself","definition":"For SBA purposes, this refers to a spouse, child, parent, or sibling. It's crucial for determining affiliation and eligibility.","what_it_means":"If individuals with a close family relationship control two or more businesses, those businesses are often considered affiliated by the SBA. This can impact the size standard and overall eligibility for a 7(a) loan. Always disclose such relationships.","url":"https://dealroom.so/glossary/close-family-relationship","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":"identity-of-interest-affiliation","term":"Identity of interest affiliation","url":"https://dealroom.so/glossary/identity-of-interest-affiliation"},{"slug":"financial-dependency","term":"Financial dependency","url":"https://dealroom.so/glossary/financial-dependency"},{"slug":"size-standard","term":"Size standard","url":"https://dealroom.so/glossary/size-standard"}],"related_questions":[{"question":"When does a 'close family relationship' between owners of separate businesses trigger identity of interest affiliation for SBA 7(a) loans?","url":"https://dealroom.so/for-lenders/questions/when-does-a-close-family-relationship-between-owners-of-separate-businesses-trigger-identi"},{"question":"Are there specific restrictions on the relationship of a non-family gift donor for equity injection?","url":"https://dealroom.so/sba-7a/questions/are-there-specific-restrictions-on-the-relationship-of-a-non-family-gift-donor-for-equity-"},{"question":"How can a gift from a close family member contribute to my equity injection for a $600,000 business purchase?","url":"https://dealroom.so/sba-7a/questions/how-can-a-gift-from-a-close-family-member-contribute-to-my-equity-injection-for-a-600-000-"},{"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":"What is the fastest a typical SBA 7(a) business acquisition loan can close?","url":"https://dealroom.so/sba-7a/questions/what-is-the-fastest-a-typical-sba-7-a-business-acquisition-loan-can-close"}]},"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 — Close family relationship","url":"https://dealroom.so/glossary/close-family-relationship","source_type":"DealRoom Data"}}