For SBA lenders
Short answer
Yes, shared facilities through a commercial lease agreement can trigger affiliation if it indicates common management or control between the two businesses.
SBA's affiliation rules consider a 'totality of the circumstances' test, including common management, identity of interest, and contractual relationships. Shared facilities, especially if managed jointly or if one entity substantially controls the other's operations through the lease, can imply affiliation.
Two separate businesses, 'Cafe A' and 'Bakery B,' share a single commercial kitchen under a joint lease where they also share equipment, staff, and management duties. This common management and shared resources would likely lead to an affiliation determination, requiring their revenues/employees to be combined for size standards.
13 CFR Part 121 - Small Business Size Regulations
Affiliation and Lending Criteria for SBA Business Loan Programs - Final Rule
SOP 50 10 - Lender and Development Company Loan Programs
SBA Table of Size Standards
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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