For SBA lenders
Short answer
An "associate" for affiliation includes an officer, director, or partner of the small business, or any person owning 20% or more of its voting equity.
SBA regulations define an associate to include individuals or entities closely tied to the applicant business, such as officers, directors, managing members, partners, or those with significant ownership (20% or more voting equity). These relationships are crucial in determining affiliation and aggregate size of all controlled businesses.
If the CEO of Applicant Company A also owns 25% of Company B, and Company B has a contractual relationship with Company A, Company B's revenues would likely be aggregated with Company A for size determination because the CEO is an "associate" with significant ownership in Company B.
Lenders must meticulously identify all associates and any other businesses they own or control to ensure accurate size standard calculations. Incorrect affiliation analysis can lead to loan eligibility issues and potential guaranty repair.
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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