{"ok":true,"canonical_url":"https://dealroom.so/glossary/shared-use-of-critical-resources","api_url":"https://dealroom.so/api/public/glossary/shared-use-of-critical-resources","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":"shared-use-of-critical-resources","term":"shared use of critical resources","group":"Reading the business","definition":"When two or more businesses rely on the same essential assets, facilities, or personnel. This is a factor the SBA uses to determine if businesses are \"affiliated.\"","what_it_means":"If the business you're buying shares key operational components (e.g., office space, equipment, employees, or management) with another business owned by the seller or related parties, the SBA might consider them affiliated. This can consolidate their revenues and employee counts, potentially pushing the acquired business over the SBA's size standard and making it ineligible for a 7(a) loan.","url":"https://dealroom.so/glossary/shared-use-of-critical-resources","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":"common-management","term":"Common management","url":"https://dealroom.so/glossary/common-management"},{"slug":"negative-control","term":"Negative control","url":"https://dealroom.so/glossary/negative-control"}],"related_questions":[{"question":"What resources are available to help me find an SBA-approved lender?","url":"https://dealroom.so/sba-loans/basics/what-resources-are-available-to-help-me-find-an-sba-approved-lender"},{"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":"When underwriting a 7(a) loan, how does a lender ensure that personal resources of the principals are properly considered in the global cash flow analysis?","url":"https://dealroom.so/for-lenders/questions/when-underwriting-a-7-a-loan-how-does-a-lender-ensure-that-personal-resources-of-the-princ"},{"question":"What if the seller of a business remains a key employee after closing for a critical transition period?","url":"https://dealroom.so/for-lenders/questions/what-if-the-seller-of-a-business-remains-a-key-employee-after-closing-for-a-critical-trans"},{"question":"Are businesses with shared facilities or equipment considered affiliated for SBA size standards?","url":"https://dealroom.so/for-lenders/questions/are-businesses-with-shared-facilities-or-equipment-considered-affiliated-for-sba-size-stan"},{"question":"When does a shared resource agreement create affiliation for SBA size standard calculations?","url":"https://dealroom.so/for-lenders/questions/when-does-a-shared-resource-agreement-create-affiliation-for-sba-size-standard-calculation"}]},"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 — shared use of critical resources","url":"https://dealroom.so/glossary/shared-use-of-critical-resources","source_type":"DealRoom Data"}}