For SBA lenders
Short answer
A private equity fund triggers affiliation if it has the ability to control the applicant business, typically through a majority equity stake or contractual management rights. This also applies to other businesses in its portfolio.
SBA's affiliation rules apply to private equity funds (or other investment companies) when they possess the power to control a concern, even if that power is not exercised. Control can be evidenced by ownership of more than 50% of the voting equity, or through options, convertible debt, or contractual arrangements that confer control over management or board decisions. All businesses controlled by the same fund are affiliated.
A private equity fund owns 60% of 'Company A' and 70% of 'Company B'. If 'Company A' applies for an SBA loan, 'Company B' would be an affiliate, and their combined revenues would be counted for size determination due to the fund's control.
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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