For SBA lenders
Short answer
Affiliation is determined by control, primarily through ownership. If one individual or entity owns 50% or more of two or more businesses, those businesses are typically affiliated and their revenues/employees are combined for size testing.
The SBA's affiliation rules are designed to prevent larger businesses from segmenting operations to qualify for small business programs. Common ownership is a primary trigger: if a person or entity owns 50% or more of a business, they are considered to control it. If they control another business, those businesses are affiliated.
A borrower owns 60% of Business A (a trucking company) and 55% of Business B (a logistics firm). For a loan to Business B, the lender must combine the revenues and employees of both Business A and Business B to determine if Business B meets the SBA's size standard for its primary industry.
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
SBA Table of Size Standards
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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