{"ok":true,"canonical_url":"https://dealroom.so/glossary/common-management","api_url":"https://dealroom.so/api/public/glossary/common-management","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":"common-management","term":"Common management","group":"Reading the business","definition":"Common management exists when two or more businesses share the same executive leadership or decision-makers. For a buyer, this is critical for understanding potential affiliation and its impact on SBA size standards.","what_it_means":"The SBA considers businesses with common management to be affiliated, which can combine their revenues and employees for size standard purposes. If the target business shares management with other entities, it might exceed the SBA's size limits, making it ineligible. Thoroughly investigate management structures during due diligence to identify any potential affiliation issues.","url":"https://dealroom.so/glossary/common-management","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":"negative-control","term":"Negative control","url":"https://dealroom.so/glossary/negative-control"},{"slug":"arm-s-length","term":"Arm's length","url":"https://dealroom.so/glossary/arm-s-length"}],"related_questions":[{"question":"How does common management trigger affiliation for size standard purposes?","url":"https://dealroom.so/for-lenders/questions/how-does-common-management-trigger-affiliation-for-size-standard-purposes"},{"question":"How does common management trigger affiliation for SBA size standard purposes?","url":"https://dealroom.so/sba-7a/questions/how-does-common-management-trigger-affiliation-for-sba-size-standard-purposes"},{"question":"How does the SBA determine affiliation between two businesses if they share common management but no common ownership?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-determine-affiliation-between-two-businesses-if-they-share-common-managem"},{"question":"What constitutes 'common management' triggering affiliation for SBA 7(a) size determination?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-common-management-triggering-affiliation-for-sba-7-a-size-determination"},{"question":"How does common management between multiple businesses trigger affiliation for SBA size purposes?","url":"https://dealroom.so/sba-7a/questions/how-does-common-management-between-multiple-businesses-trigger-affiliation-for-sba-size-pu"},{"question":"What factors are considered when evaluating affiliation between businesses that share common management?","url":"https://dealroom.so/for-lenders/questions/what-factors-are-considered-when-evaluating-affiliation-between-businesses-that-share-comm"}]},"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 — Common management","url":"https://dealroom.so/glossary/common-management","source_type":"DealRoom Data"}}