{"ok":true,"canonical_url":"https://dealroom.so/glossary/undisclosed-affiliate","api_url":"https://dealroom.so/api/public/glossary/undisclosed-affiliate","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":"undisclosed-affiliate","term":"Undisclosed affiliate","group":"People and paperwork","definition":"This refers to a person or business with a relationship (ownership, management, or family) to the borrower or seller that was not disclosed to the SBA or lender. Failure to disclose can lead to serious problems.","what_it_means":"The SBA has strict affiliation rules to determine if businesses are small and eligible. An undisclosed affiliate can make your target business ineligible for an SBA loan if their combined size exceeds standards. This also raises red flags about misrepresentation, which can lead to loan denial or even fraud charges.","url":"https://dealroom.so/glossary/undisclosed-affiliate","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":"material-information","term":"Material information","url":"https://dealroom.so/glossary/material-information"},{"slug":"intentional-misrepresentation","term":"Intentional misrepresentation","url":"https://dealroom.so/glossary/intentional-misrepresentation"}],"related_questions":[{"question":"What are the implications for a lender if the SBA discovers an undisclosed affiliate post-closing on a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-are-the-implications-for-a-lender-if-the-sba-discovers-an-undisclosed-affiliate-post-"},{"question":"What if the business I want to acquire has undisclosed liabilities discovered during due diligence?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-want-to-acquire-has-undisclosed-liabilities-discovered-during-due-d"},{"question":"Does finding significant undisclosed liabilities during due diligence kill an SBA 7(a) acquisition loan?","url":"https://dealroom.so/sba-7a/questions/does-finding-significant-undisclosed-liabilities-during-due-diligence-kill-an-sba-7-a-acqu"},{"question":"How does a lender prevent a guaranty denial related to undisclosed affiliations identified post-closing?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-prevent-a-guaranty-denial-related-to-undisclosed-affiliations-identified"},{"question":"What specific actions must a lender take if they discover undisclosed environmental contamination post-closing?","url":"https://dealroom.so/for-lenders/questions/what-specific-actions-must-a-lender-take-if-they-discover-undisclosed-environmental-contam"},{"question":"How does a lender handle an SBA 7(a) loan where the borrower intends to lease property from an affiliate?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-handle-an-sba-7-a-loan-where-the-borrower-intends-to-lease-property-from"}]},"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 — Undisclosed affiliate","url":"https://dealroom.so/glossary/undisclosed-affiliate","source_type":"DealRoom Data"}}