For SBA lenders
Short answer
Affiliation can arise if businesses share critical resources, personnel, or services, indicating common control or dependence, even without direct ownership.
SBA rules dictate that businesses are affiliated when one controls or has the power to control the other, or a third party controls both. Sharing resources such as employees, facilities, equipment, or administrative functions can indicate common control or an identity of interest, triggering affiliation for size standard calculations.
Two distinct businesses, A and B, share a common administrative office, accounting department, and human resources staff. Even if there's no common ownership, the extensive sharing of critical resources could lead the SBA to determine that Businesses A and B are affiliated, requiring their revenues/employees to be combined for size testing.
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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