For SBA lenders
Short answer
The SBA may determine affiliation based on common management if one or more individuals or entities control the management of both businesses, even without a direct ownership stake.
Affiliation can be established through several tests, including common management. If an individual or group of persons has the power to control, or actually controls, the management or daily business operations of two or more concerns, these concerns are considered affiliates. This can include common officers, directors, or key employees who manage both entities.
A CEO of Business A (applicant) also serves as a managing partner for Business B, and the lender's due diligence reveals Business B is financially intertwined or provides critical services to Business A. Even without common ownership, the common CEO's control of management can trigger affiliation, requiring a combined size analysis.
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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