{"ok":true,"canonical_url":"https://dealroom.so/glossary/undisclosed-affiliation","api_url":"https://dealroom.so/api/public/glossary/undisclosed-affiliation","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-affiliation","term":"Undisclosed Affiliation","group":"People and paperwork","definition":"Failing to disclose a relationship between you, the business, or other entities that could impact SBA size standards or eligibility. This can invalidate your loan.","what_it_means":"The SBA has strict rules about affiliation, which determine if a business meets small business size standards. If you or the seller have ownership or control in other entities, you must disclose them. An undisclosed affiliation could deem the business \"too large\" for an SBA loan, killing your deal.","url":"https://dealroom.so/glossary/undisclosed-affiliation","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":"ineligible-for-sba-guaranty","term":"Ineligible for SBA Guaranty","url":"https://dealroom.so/glossary/ineligible-for-sba-guaranty"}],"related_questions":[{"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 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":"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":"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":"How does the SBA define 'affiliation' when checking business size?","url":"https://dealroom.so/sba-loans/basics/how-does-the-sba-define-affiliation-when-checking-business-size"}]},"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 Affiliation","url":"https://dealroom.so/glossary/undisclosed-affiliation","source_type":"DealRoom Data"}}