For SBA lenders
Short answer
The 'totality of the circumstances' rule allows the SBA to find affiliation even if no single criterion is met, by considering all relevant factors that suggest control or shared interests between entities.
This rule serves as a catch-all for complex ownership and operational structures. If, after reviewing all relationships, agreements, and operational realities, the SBA concludes that one or more parties have the power to control another, or that there is an identity of interest, they can deem them affiliated, regardless of formal ownership percentages.
Two separate businesses, each 40% owned by different individuals, share office space, employees, and often refer clients to each other. Even without a clear majority owner, the lender could determine affiliation based on their integrated operations and shared resources.
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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