{"ok":true,"canonical_url":"https://dealroom.so/glossary/identity-of-interest","api_url":"https://dealroom.so/api/public/glossary/identity-of-interest","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":"identity-of-interest","term":"Identity of Interest","group":"Reading the business","definition":"A relationship between parties that suggests they are not truly independent or acting at arm's length, such as family members or affiliated businesses. The SBA scrutinizes these relationships to prevent conflicts and ensure fair market value.","what_it_means":"The SBA defines identity of interest broadly to include immediate family members, common management, or shared ownership in affiliated businesses. If an identity of interest exists between the buyer and seller, or between the buyer and other parties in the deal (e.g., a landlord), the SBA will scrutinize the transaction terms, such as real estate leases or asset valuations, to ensure they are at arm's length.","url":"https://dealroom.so/glossary/identity-of-interest","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":"immediate-family-members","term":"Immediate Family Members","url":"https://dealroom.so/glossary/immediate-family-members"},{"slug":"arm-s-length","term":"Arm's length","url":"https://dealroom.so/glossary/arm-s-length"},{"slug":"power-to-control","term":"Power to Control","url":"https://dealroom.so/glossary/power-to-control"}],"related_questions":[{"question":"When does identity of interest trigger affiliation for size determination under SBA rules?","url":"https://dealroom.so/for-lenders/questions/when-does-identity-of-interest-trigger-affiliation-for-size-determination-under-sba-rules"},{"question":"What specific criteria determine if two businesses are affiliated due to 'identity of interest' for size standards?","url":"https://dealroom.so/for-lenders/questions/what-specific-criteria-determine-if-two-businesses-are-affiliated-due-to-identity-of-inter"},{"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":"What types of interest rates are typically available for SBA 7(a) loans?","url":"https://dealroom.so/sba-loans/basics/what-types-of-interest-rates-are-typically-available-for-sba-7-a-loans"},{"question":"How do potential conflicts of interest with the seller, like shared services, affect approval?","url":"https://dealroom.so/sba-7a/questions/how-do-potential-conflicts-of-interest-with-the-seller-like-shared-services-affect-approva"},{"question":"What is the typical range of interest rates for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-typical-range-of-interest-rates-for-an-sba-7-a-loan"}]},"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 — Identity of Interest","url":"https://dealroom.so/glossary/identity-of-interest","source_type":"DealRoom Data"}}