{"ok":true,"canonical_url":"https://dealroom.so/glossary/common-ownership","api_url":"https://dealroom.so/api/public/glossary/common-ownership","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-ownership","term":"Common Ownership","group":"Reading the business","definition":"When the same individuals or entities own a significant stake in multiple businesses. This can trigger SBA affiliation rules, potentially impacting loan eligibility.","what_it_means":"The SBA has strict affiliation rules to prevent large businesses from accessing small business loans. If you or your partners own 20% or more of another business, or have \"negative control,\" the SBA might consider those businesses affiliated. This means their revenues/employees could be combined, potentially making your target business exceed size standards, rendering it ineligible.","url":"https://dealroom.so/glossary/common-ownership","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":"co-borrower","term":"Co-borrower","url":"https://dealroom.so/glossary/co-borrower"}],"related_questions":[{"question":"When does common ownership by an Employee Stock Ownership Plan (ESOP) trigger affiliation for size determination?","url":"https://dealroom.so/for-lenders/questions/when-does-common-ownership-by-an-employee-stock-ownership-plan-esop-trigger-affiliation-fo"},{"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":"When does common ownership through a trust or estate create affiliation for size purposes?","url":"https://dealroom.so/for-lenders/questions/when-does-common-ownership-through-a-trust-or-estate-create-affiliation-for-size-purposes"},{"question":"What are the specific thresholds or rules for determining affiliation based on common management, beyond direct ownership?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-thresholds-or-rules-for-determining-affiliation-based-on-common-mana"},{"question":"How does the SBA determine if multiple businesses are affiliated for size standard purposes based on common ownership?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-determine-if-multiple-businesses-are-affiliated-for-size-standard-purpose"},{"question":"Under what specific conditions can two businesses with common ownership but distinct operations avoid affiliation for size purposes?","url":"https://dealroom.so/for-lenders/questions/under-what-specific-conditions-can-two-businesses-with-common-ownership-but-distinct-opera"}]},"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 Ownership","url":"https://dealroom.so/glossary/common-ownership","source_type":"DealRoom Data"}}