{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/how-do-shared-administrative-services-like-hr-or-accounting-automatically-trigger-affiliat","api_url":"https://dealroom.so/api/public/questions/how-do-shared-administrative-services-like-hr-or-accounting-automatically-trigger-affiliat","question":"How do shared administrative services, like HR or accounting, automatically trigger affiliation for size determination?","topic":"Affiliation & size","audience":"lender","bot_mode":"lender","short_answer":"Shared administrative services alone do not automatically trigger affiliation for size determination unless they are indicative of common management, shared facilities, or an identity of interest that establishes control or undue reliance.","rule":"SBA's affiliation rules focus on control. While sharing administrative services can be a factor considered, it's typically not sufficient on its own to establish affiliation unless it demonstrates that one entity controls the other's operations or management, or that common ownership/management exists.","example":"Two separate businesses, owned by different individuals, use the same third-party accounting firm. This shared service alone would not trigger affiliation. However, if they share a common CEO or a majority owner, then affiliation is likely due to common management/ownership, not just the shared service.","what_lenders_check":"Lenders should investigate the extent and nature of shared services. If the services are provided by a third party, it's less likely to trigger affiliation. If provided by an affiliated entity or a common owner, it points to existing control and potentially strengthens an affiliation finding.","required_facts":["Common management","Shared facilities","Identity of interest","Control indicators","Extent of services"],"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":"When does a contractual relationship between two businesses trigger affiliation for size standard calculations?","url":"https://dealroom.so/for-lenders/questions/when-does-a-contractual-relationship-between-two-businesses-trigger-affiliation-for-size-s"},{"question":"How does ownership of options or warrants affect affiliation determination for SBA size standards?","url":"https://dealroom.so/for-lenders/questions/how-does-ownership-of-options-or-warrants-affect-affiliation-determination-for-sba-size-st"},{"question":"What are the size standard requirements for a business applying for a 7(a) loan if it operates internationally?","url":"https://dealroom.so/for-lenders/questions/what-are-the-size-standard-requirements-for-a-business-applying-for-a-7-a-loan-if-it-opera"},{"question":"What specific scenarios involving shared directors, officers, or key employees constitute 'common management' triggering affiliation for SBA size determination?","url":"https://dealroom.so/for-lenders/questions/what-specific-scenarios-involving-shared-directors-officers-or-key-employees-constitute-co"},{"question":"Under what conditions does a shared economic interest trigger affiliation for SBA size standard purposes?","url":"https://dealroom.so/for-lenders/questions/under-what-conditions-does-a-shared-economic-interest-trigger-affiliation-for-sba-size-sta"},{"question":"How does the 'totality of the circumstances' rule apply when determining affiliation for SBA size standards?","url":"https://dealroom.so/for-lenders/questions/how-does-the-totality-of-the-circumstances-rule-apply-when-determining-affiliation-for-sba"}],"related_terms":[{"term":"Shared Services","url":"https://dealroom.so/glossary/shared-services"},{"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":"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/how-do-shared-administrative-services-like-hr-or-accounting-automatically-trigger-affiliat","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."]}