{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-define-affiliation-when-determining-a-business-s-size-standard","api_url":"https://dealroom.so/api/public/questions/how-does-the-sba-define-affiliation-when-determining-a-business-s-size-standard","question":"How does the SBA define 'affiliation' when determining a business's size standard?","topic":"Eligibility & size","audience":"borrower","bot_mode":"buyer","short_answer":"Affiliation means businesses are connected if one controls or has the power to control the other, impacting their combined size for eligibility.","rule":"The SBA's affiliation rules aggregate the employees or revenues of a business and its affiliates to determine if the combined entity meets the small business size standard. Control can be direct (ownership) or indirect (common management, contractual relationships).","example":"If you own 60% of Business A and 30% of Business B, and you apply for an SBA loan for Business A, the employees and revenue of both Business A and Business B will be combined to determine if Business A meets the size standards.","what_lenders_check":"Lenders must perform a thorough affiliation analysis for all applicants and their related entities. Failure to correctly identify and account for affiliates can lead to a loan being ineligible for the SBA guaranty.","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":"Business size standard","url":"https://dealroom.so/glossary/business-size-standard"},{"term":"Size standard","url":"https://dealroom.so/glossary/size-standard"},{"term":"Small business size standard","url":"https://dealroom.so/glossary/small-business-size-standard"},{"term":"Size Eligibility","url":"https://dealroom.so/glossary/size-eligibility"},{"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-the-sba-define-affiliation-when-determining-a-business-s-size-standard","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."]}