For SBA lenders
Short answer
An 'associate' includes individuals or entities with certain close relationships to the applicant business, such as owners, partners, key employees, and sometimes spouses, who may require a personal guaranty or be considered for affiliation determination.
SBA defines an 'associate' broadly to encompass individuals and entities that have a direct or indirect relationship with the applicant business, its owners, or its management. This definition is crucial for determining who must personally guarantee a loan (owners of 20% or more), and for assessing potential affiliation, which impacts size standard eligibility.
For a borrower seeking a 7(a) loan, the lender identifies the CEO, CFO, and all individuals with a 20% or greater ownership stake as associates. If the CEO's spouse owns a separate, related business, the spouse and their business might also be considered associates for affiliation purposes.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
13 CFR Part 121 - Small Business Size Regulations
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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