For SBA lenders
Short answer
An 'associate' for affiliation purposes includes officers, directors, owners of 20% or more of voting equity, and certain key employees of the applicant business, as well as any trust or estate in which such individuals hold a substantial interest or for which they serve as a trustee or executor.
SBA's affiliation rules are complex, aiming to aggregate the revenues or employees of all entities under common control or ownership to determine if a business meets the small business size standard. 'Associate' is a foundational term for identifying relationships that could trigger affiliation, such as shared management or significant ownership stakes in other businesses.
A loan applicant, Mr. Smith, owns 30% of ABC Corp. and is also the CEO. He also owns 25% of XYZ LLC, a separate business. Mr. Smith is an 'associate' of both ABC Corp. and XYZ LLC, triggering a review for potential affiliation between the two entities.
13 CFR Part 121 - Small Business Size Regulations
SOP 50 10 - Lender and Development Company Loan Programs
Affiliation and Lending Criteria for SBA Business Loan Programs - Final Rule
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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