{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/how-does-common-management-trigger-affiliation-for-sba-size-standard-purposes","api_url":"https://dealroom.so/api/public/questions/how-does-common-management-trigger-affiliation-for-sba-size-standard-purposes","question":"How does common management trigger affiliation for SBA size standard purposes?","topic":"Eligibility & size","audience":"borrower","bot_mode":"buyer","short_answer":"Common management triggers affiliation when individuals or entities share management or control over multiple businesses, combining their size for eligibility.","rule":"If the same person or group of people manage or have the power to control the day-to-day operations of two or more businesses, those businesses are considered affiliates. This aggregation of size ensures that only truly small businesses receive SBA assistance.","example":"If you are the CEO of Business A (the applicant) and also sit on the board of directors and make operational decisions for Business B, then Business A and Business B would be considered affiliated, and their revenues/employees combined for size standard purposes.","what_lenders_check":"Lenders must carefully investigate the management structure and control mechanisms across all entities associated with the borrower to accurately determine if affiliation exists and correctly calculate the combined size for eligibility.","required_facts":[],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 121 - Small Business Size Regulations","Affiliation and Lending Criteria for SBA Business Loan Programs - Final Rule"],"official_sources":[{"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":"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":"SBA size standard","url":"https://dealroom.so/glossary/sba-size-standard"},{"term":"Common management","url":"https://dealroom.so/glossary/common-management"},{"term":"Size standard","url":"https://dealroom.so/glossary/size-standard"},{"term":"Size Eligibility","url":"https://dealroom.so/glossary/size-eligibility"},{"term":"Business size standard","url":"https://dealroom.so/glossary/business-size-standard"},{"term":"Size standard compliance","url":"https://dealroom.so/glossary/size-standard-compliance"}],"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/sba-7a/questions/how-does-common-management-trigger-affiliation-for-sba-size-standard-purposes","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."]}