For SBA lenders
Short answer
The SBA applies its affiliation rules to aggregate the revenue or employee count of the applicant and all domestic and foreign affiliates. The total aggregated size is then compared to the relevant industry size standard.
Affiliation rules are designed to prevent businesses from circumventing size standards by operating as separate entities. Common ownership, common management, identity of interest, and contractual relationships can all trigger affiliation, requiring the aggregation of all entities' financial data for size determination.
A borrower's primary business has $10M in revenue. They also own 60% of another business with $5M revenue and 30% of a third with $3M revenue. If the primary business's NAICS code has a $15M revenue size standard, the lender must aggregate ($10M + $5M + $3M = $18M), making the applicant ineligible.
SOP 50 10 - Lender and Development Company Loan Programs
13 CFR Part 121 - Small Business Size Regulations
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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