For SBA lenders
Short answer
The SBA determines "common control" for a management company by assessing if the same individuals or entities manage or have the power to control both the applicant business and the management company.
A management company that provides critical management services to an applicant business is affiliated with the applicant if the same individuals or entities have the power to control both. This "common control" can arise from identical ownership, shared management, or contractual agreements that grant significant influence over operational and policy decisions to the same party.
John Smith owns 100% of "Main Street Business," which applies for a 7(a) loan. John also owns 100% of "John's Management Services LLC," which provides all executive management functions for Main Street Business. Due to common ownership and shared management, John's Management Services LLC would be affiliated with Main Street Business.
13 CFR Part 121 - Small Business Size Regulations
Affiliation and Lending Criteria for SBA Business Loan Programs - Final Rule
SOP 50 10 - Lender and Development Company Loan Programs
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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