{"ok":true,"canonical_url":"https://dealroom.so/glossary/independent-operation","api_url":"https://dealroom.so/api/public/glossary/independent-operation","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":"independent-operation","term":"Independent Operation","group":"Reading the business","definition":"This refers to a business that can operate without direct control or reliance on a larger parent company or external entity. For SBA loans, the business must be truly independent.","what_it_means":"The SBA has rules about affiliation, meaning the business you buy must operate independently. If it's too tied to the seller's other businesses, it might be considered an affiliate, potentially impacting eligibility or size standards. Ensure the business is standalone post-acquisition.","url":"https://dealroom.so/glossary/independent-operation","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":"arm-s-length","term":"Arm's length","url":"https://dealroom.so/glossary/arm-s-length"},{"slug":"small-business","term":"Small business","url":"https://dealroom.so/glossary/small-business"}],"related_questions":[{"question":"What specific environmental review steps are triggered if the real estate has a dry cleaning operation?","url":"https://dealroom.so/sba-7a/questions/what-specific-environmental-review-steps-are-triggered-if-the-real-estate-has-a-dry-cleani"},{"question":"Can I use an SBA 7(a) loan to acquire a business that is primarily an e-commerce operation with few physical assets?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-acquire-a-business-that-is-primarily-an-e-commerce-operation-"},{"question":"When is an independent business valuation required for a partner buyout?","url":"https://dealroom.so/sba-7a/questions/when-is-an-independent-business-valuation-required-for-a-partner-buyout"},{"question":"Is an independent appraisal always required when an acquisition includes significant goodwill?","url":"https://dealroom.so/sba-7a/questions/is-an-independent-appraisal-always-required-when-an-acquisition-includes-significant-goodw"},{"question":"When is an independent appraisal required for non-real estate business assets being acquired?","url":"https://dealroom.so/sba-7a/questions/when-is-an-independent-appraisal-required-for-non-real-estate-business-assets-being-acquir"},{"question":"How long does an independent business valuation typically take for a $1.5 million acquisition?","url":"https://dealroom.so/sba-7a/questions/how-long-does-an-independent-business-valuation-typically-take-for-a-1-5-million-acquisiti"}]},"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 — Independent Operation","url":"https://dealroom.so/glossary/independent-operation","source_type":"DealRoom Data"}}