{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/does-sharing-common-administrative-services-like-hr-or-accounting-automatically-trigger-af","api_url":"https://dealroom.so/api/public/questions/does-sharing-common-administrative-services-like-hr-or-accounting-automatically-trigger-af","question":"Does sharing common administrative services, like HR or accounting, automatically trigger affiliation for size determination?","topic":"Affiliation & Size","audience":"lender","bot_mode":"lender","short_answer":"No, merely sharing common administrative services does not automatically trigger affiliation; it depends on the extent of control or common ownership.","rule":"Affiliation rules are designed to prevent larger businesses from segmenting operations to appear small. While shared services might be a factor, affiliation typically arises from ownership, management, or contractual relationships where one entity controls another, or a third party controls both. Shared administrative services alone usually do not establish control.","example":"Two separate businesses, a bakery and a coffee shop, contract with the same third-party HR and accounting firm. As long as there's no common ownership or common control over management between the bakery and coffee shop, they are not affiliated.","what_lenders_check":"Lenders must thoroughly review all business relationships, contracts, and ownership structures to identify potential control, especially when principals have other business interests or where related industries suggest integration beyond administrative tasks.","required_facts":["Common administrative services","Ownership structure","Management control","Contractual relationships"],"source_families":["13 CFR Part 121 - Small Business Size Regulations","SOP 50 10 - Lender and Development Company Loan Programs","Affiliation and Lending Criteria for SBA Business Loan Programs - Final Rule"],"official_sources":[{"title":"13 CFR Part 121 - Small Business Size Regulations","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-121"},{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"Affiliation and Lending Criteria for SBA Business Loan Programs - Final Rule","url":"https://www.federalregister.gov/documents/2023/04/10/2023-07173/affiliation-and-lending-criteria-for-the-sba-business-loan-programs"}],"related_questions":[{"question":"How does the SBA define 'affiliation' when checking business size?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-define-affiliation-when-checking-business-size"},{"question":"When does common management or shared facilities trigger affiliation for SBA 7(a) size determination?","url":"https://dealroom.so/for-lenders/questions/when-does-common-management-or-shared-facilities-trigger-affiliation-for-sba-7-a-size-dete"},{"question":"What factors are considered when evaluating affiliation between businesses that share common management?","url":"https://dealroom.so/for-lenders/questions/what-factors-are-considered-when-evaluating-affiliation-between-businesses-that-share-comm"},{"question":"What are the financial criteria for a business to qualify as 'small' under the alternative size standard?","url":"https://dealroom.so/for-lenders/questions/what-are-the-financial-criteria-for-a-business-to-qualify-as-small-under-the-alternative-s"},{"question":"Does an unfunded stock option agreement trigger affiliation for SBA 7(a) size standard calculations?","url":"https://dealroom.so/for-lenders/questions/does-an-unfunded-stock-option-agreement-trigger-affiliation-for-sba-7-a-size-standard-calc"},{"question":"What criteria does the SBA use to determine common management that triggers affiliation for size standard purposes?","url":"https://dealroom.so/for-lenders/questions/what-criteria-does-the-sba-use-to-determine-common-management-that-triggers-affiliation-fo"}],"related_terms":[{"term":"size determination","url":"https://dealroom.so/glossary/size-determination"},{"term":"SBA size determination","url":"https://dealroom.so/glossary/sba-size-determination"},{"term":"HR","url":"https://dealroom.so/glossary/hr"},{"term":"Shared Services","url":"https://dealroom.so/glossary/shared-services"},{"term":"Accounting fees","url":"https://dealroom.so/glossary/accounting-fees"},{"term":"Financial accounting","url":"https://dealroom.so/glossary/financial-accounting"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/for-lenders/questions/does-sharing-common-administrative-services-like-hr-or-accounting-automatically-trigger-af","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}