{"ok":true,"canonical_url":"https://dealroom.so/glossary/interlocking-directorates","api_url":"https://dealroom.so/api/public/glossary/interlocking-directorates","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":"interlocking-directorates","term":"Interlocking directorates","group":"People and paperwork","definition":"This occurs when the same people sit on the boards of directors for multiple companies. It's a red flag for potential conflicts of interest or affiliation issues that the SBA cares about.","what_it_means":"The SBA scrutinizes interlocking directorates because they can indicate common management and control, triggering affiliation rules. If the seller or their key employees serve on the boards of other businesses, the SBA may consider those businesses affiliated, potentially impacting the target business's eligibility based on size standards. Always disclose these relationships.","url":"https://dealroom.so/glossary/interlocking-directorates","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":"affiliated-businesses","term":"Affiliated businesses","url":"https://dealroom.so/glossary/affiliated-businesses"},{"slug":"common-management","term":"Common management","url":"https://dealroom.so/glossary/common-management"},{"slug":"conflict-of-interest","term":"Conflict of interest","url":"https://dealroom.so/glossary/conflict-of-interest"},{"slug":"size-standard","term":"Size standard","url":"https://dealroom.so/glossary/size-standard"}],"related_questions":[]},"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 — Interlocking directorates","url":"https://dealroom.so/glossary/interlocking-directorates","source_type":"DealRoom Data"}}