For SBA lenders
Short answer
Common management triggers affiliation if one or more individuals or entities control the management of two or more businesses, or if a single individual or entity has the power to control the management of two or more businesses.
SBA regulations consider businesses affiliated if they have common management, meaning that the same individuals or entities direct the day-to-day operations or strategic planning of multiple businesses. This can include overlapping officers, directors, or key employees, even if ownership is separate.
The CEO of Company A also serves as the Chairman of the Board and makes key operational decisions for Company B. Even if Company A and B have different owners, this common management would trigger affiliation, requiring their employee numbers/revenues to be combined for size standard eligibility.
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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