For SBA lenders
Short answer
Common management or shared facilities trigger affiliation when the same individual(s) manage or control the daily business operations or when two or more businesses share essential operational resources, indicating a lack of independence.
Affiliation rules are designed to prevent businesses that are not truly 'small' from receiving SBA assistance. Common management exists when one or more individuals or entities have the power to control, or in fact control, the management of both businesses. Shared facilities, particularly those critical to operations, suggest a shared identity or control, leading to affiliation.
A borrower owns Business A and is seeking a 7(a) loan. The lender discovers the borrower's spouse owns Business B, and both businesses operate from the same physical address, sharing administrative staff and a single management team. The lender would likely find these businesses affiliated under common management and shared facilities.
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.
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