{"ok":true,"canonical_url":"https://dealroom.so/glossary/familial-relationship","api_url":"https://dealroom.so/api/public/glossary/familial-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":"familial-relationship","term":"Familial relationship","group":"People and paperwork","definition":"This refers to family ties between individuals involved in the business acquisition. The SBA has rules around familial relationships to prevent conflicts of interest, especially regarding seller notes or gifts.","what_it_means":"If the seller has a familial relationship with the buyer, the seller note cannot be on standby and must be repaid on the same terms as the bank loan. Any genuine gift for your equity injection must also be from an immediate family member.","url":"https://dealroom.so/glossary/familial-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"}],"related":[{"slug":"genuine-gift","term":"Genuine gift","url":"https://dealroom.so/glossary/genuine-gift"},{"slug":"seller-note","term":"Seller note","url":"https://dealroom.so/glossary/seller-note"},{"slug":"standby","term":"Standby","url":"https://dealroom.so/glossary/standby"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"}],"related_questions":[{"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":"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"},{"question":"When does a shared familial relationship between business owners automatically trigger affiliation for SBA size standard calculations?","url":"https://dealroom.so/for-lenders/questions/when-does-a-shared-familial-relationship-between-business-owners-automatically-trigger-aff"},{"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":"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-"}]},"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 — Familial relationship","url":"https://dealroom.so/glossary/familial-relationship","source_type":"DealRoom Data"}}