{"ok":true,"canonical_url":"https://dealroom.so/glossary/undisclosed-affiliations","api_url":"https://dealroom.so/api/public/glossary/undisclosed-affiliations","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-affiliations","term":"Undisclosed Affiliations","group":"People and paperwork","definition":"These are business or personal relationships that exist but are not revealed, potentially impacting the deal's fairness, eligibility, or terms. The SBA is very strict about identifying all affiliations.","what_it_means":"The SBA has complex affiliation rules to determine if a business meets size standards or if a transaction is truly \"arm's length.\" Failing to disclose common management, ownership, or contractual ties between entities can lead to loan denial or even fraud allegations. Be transparent on Form 1919.","url":"https://dealroom.so/glossary/undisclosed-affiliations","official_sources":[{"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"},{"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"}],"related":[{"slug":"affiliation","term":"Affiliation","url":"https://dealroom.so/glossary/affiliation"},{"slug":"related-entities","term":"Related Entities","url":"https://dealroom.so/glossary/related-entities"},{"slug":"arm-s-length","term":"Arm's length","url":"https://dealroom.so/glossary/arm-s-length"},{"slug":"form-1919","term":"Form 1919","url":"https://dealroom.so/glossary/form-1919"}],"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-"}]},"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 Affiliations","url":"https://dealroom.so/glossary/undisclosed-affiliations","source_type":"DealRoom Data"}}