For SBA lenders
Short answer
The SBA's look-back period for determining affiliation based on prior ownership, especially for common management or identity of interest, can extend to two years before the loan application. This ensures recent divestitures don't circumvent affiliation rules.
SBA regulations define affiliation broadly to prevent evasion of size standards. For certain types of affiliation, such as identity of interest or common management, the SBA may look back at ownership and control relationships that existed within two years prior to the date of the loan application. This helps capture situations where businesses might have been structured to avoid affiliation rules just before applying for an SBA loan.
A principal sold their 60% ownership in a separate, large business 18 months prior to applying for a 7(a) loan for their new venture. The lender must still analyze this prior ownership during the two-year look-back period to determine if affiliation with the previously owned business affects the new venture's size eligibility.
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
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.
More on affiliation & size
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day