For SBA lenders
Short answer
A close family relationship can trigger an identity of interest affiliation if there's evidence of shared control, pooled resources, or financial dependency, leading to the assumption that one business benefits from the other.
The 'identity of interest' rule presumes affiliation when individuals with a close family relationship (e.g., spouses, parents, children, siblings) own businesses that are economically dependent or share critical resources. This presumption can be rebutted with clear evidence that the businesses operate independently and without shared control.
A father owns 'Construction Co. A' and his son owns 'Demolition Co. B.' Demolition Co. B exclusively subcontracts for Construction Co. A, sharing employees and equipment. Despite being separate legal entities, their economic dependency and shared resources would likely trigger an identity of interest affiliation.
13 CFR Part 121 - Small Business Size Regulations
Affiliation and Lending Criteria for SBA Business Loan Programs - Final Rule
SOP 50 10 - Lender and Development Company Loan Programs
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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