For SBA lenders
Short answer
An 'associate' for affiliation purposes includes individuals or entities who have the power to control a business, such as managing members, general partners, officers, directors, or persons with contractual power to control.
Beyond direct majority ownership, 13 CFR 121 broadens the definition of control to include various forms of influence. This can be through contractual relationships (e.g., management agreements, loan covenants), family relationships, or common management positions, where one person or entity has the ability to dictate policy and operational decisions.
John owns 40% of Business X and is its CEO. His sister, Jane, owns 15% of Business X and 60% of Business Y (a related industry). Even though John doesn't own 50% of Business X, if John and Jane are considered 'associates' due to family ties and combined control (even if John's control is through management), their businesses could be deemed affiliated.
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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