{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/how-does-common-management-between-multiple-businesses-trigger-affiliation-for-sba-size-pu","api_url":"https://dealroom.so/api/public/questions/how-does-common-management-between-multiple-businesses-trigger-affiliation-for-sba-size-pu","question":"How does common management between multiple businesses trigger affiliation for SBA size purposes?","topic":"Eligibility & size","audience":"borrower","bot_mode":"buyer","short_answer":"Common management triggers affiliation for SBA size purposes when individuals or entities control the management and daily business operations of multiple concerns.","rule":"SBA's affiliation rules state that if one or more individuals or entities have the power to control (or common control exists over) the management or operations of multiple businesses, those businesses are considered affiliates. This means their revenues or employees are combined to determine if they meet the SBA's small business size standards.","example":"If a buyer owns 100% of 'Business A' and is buying 'Business B' with an SBA loan, and will be the CEO of both, 'Business A' and 'Business B' would be affiliates, and their combined revenues would be used for size testing.","what_lenders_check":"Lenders must perform a thorough affiliation analysis for all applicants and their related businesses. Incorrectly assessing affiliation can lead to a business being deemed 'not small' and thus ineligible, jeopardizing the SBA guaranty.","required_facts":["Common control","Management influence","Operational control","Combined revenue/employees","Size standards"],"source_families":["13 CFR Part 121 - Small Business Size Regulations","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":"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":"Can I use an SBA 7(a) loan to acquire a business that previously used an SBA loan?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-acquire-a-business-that-previously-used-an-sba-loan"},{"question":"How does the SBA define \"affiliation\" when considering my eligibility for a 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-define-affiliation-when-considering-my-eligibility-for-a-7-a-loan"},{"question":"Can an SBA 7(a) loan be used to purchase a business that is a startup or has limited operating history?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-purchase-a-business-that-is-a-startup-or-has-limited-operat"},{"question":"Are there specific types of businesses that are ineligible for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/are-there-specific-types-of-businesses-that-are-ineligible-for-an-sba-7-a-loan"},{"question":"What types of businesses are generally eligible to apply for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-types-of-businesses-are-generally-eligible-to-apply-for-an-sba-7-a-loan"},{"question":"Do businesses that primarily generate passive income qualify for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/do-businesses-that-primarily-generate-passive-income-qualify-for-an-sba-7-a-loan"}],"related_terms":[{"term":"Common management","url":"https://dealroom.so/glossary/common-management"},{"term":"Size Eligibility","url":"https://dealroom.so/glossary/size-eligibility"},{"term":"Multiple","url":"https://dealroom.so/glossary/multiple"},{"term":"SBA size determination","url":"https://dealroom.so/glossary/sba-size-determination"},{"term":"SBA size standard","url":"https://dealroom.so/glossary/sba-size-standard"},{"term":"Market multiple","url":"https://dealroom.so/glossary/market-multiple"}],"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":"2026-06-14","sba_rule_sources_checked_through":"2026-06-14"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/how-does-common-management-between-multiple-businesses-trigger-affiliation-for-sba-size-pu","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."]}