For SBA lenders
Short answer
Affiliation can be triggered when a person or entity directly or indirectly controls or has the power to control multiple businesses, including through ownership stakes. Investors holding a large minority stake or significant board representation in multiple firms can lead to affiliation.
SBA regulations consider all forms of control or the power to control when determining affiliation. This includes equity ownership where a single investor or group of investors owns a substantial block of voting stock in multiple businesses, especially if no single owner has a majority. Common investors can create affiliation if they have the power to control the other entity, regardless of whether that power is exercised.
An investor owns 30% of Company A and 35% of Company B, with no other owner having a majority in either company. Even though the investor doesn't own 51% in either, their significant combined stake and potential influence could lead to affiliation between Company A and Company B for SBA size purposes.
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
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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