For SBA lenders
Short answer
Affiliation can be triggered when parties have an identity of interest due to close relatives, or when they share common investments, or engage in joint ventures. This applies even without direct ownership or contractual control.
The SBA's affiliation rules aim to combine entities that are effectively controlled by the same party or parties, preventing businesses from circumventing size standards. A shared economic interest, particularly among close relatives, can indicate an identity of interest that leads to affiliation, requiring their revenues/employees to be aggregated.
Mr. A owns 100% of Business X, and his brother, Mr. B, owns 100% of Business Y in a similar industry. Both businesses frequently share customers and resources. Even without direct ownership overlap, a lender might determine affiliation based on their identity of interest and close familial relationship.
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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