For SBA lenders
Short answer
Affiliation combines the revenues or employees of all related businesses when determining if an applicant meets the SBA's size standards, potentially making an otherwise eligible business ineligible.
SBA's affiliation rules aggregate the size (revenue or employees) of the applicant business with any other businesses it controls, is controlled by, or that share common control. The combined size is then compared to the relevant NAICS code size standard. If the aggregate size exceeds the standard, the applicant is considered 'not small' and thus ineligible for an SBA loan, even if it appears small on its own.
A borrower applies for a loan for their restaurant, which has $3 million in revenue. However, they also own 60% of a construction company with $15 million in revenue. If the combined $18 million exceeds the size standard for the restaurant's NAICS code, the restaurant would be deemed ineligible due to affiliation.
SOP 50 10 - Lender and Development Company Loan Programs
13 CFR Part 121 - Small Business Size Regulations
Affiliation and Lending Criteria for SBA Business Loan Programs - Final Rule
SBA Table of Size Standards
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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