For SBA lenders
Short answer
Common ownership through a trust or estate creates affiliation if the trust or estate (or its beneficiaries/fiduciaries) controls or has the power to control another business.
SBA's affiliation rules extend to entities controlled by trusts or estates. If a trust or estate holds a controlling interest (usually 50% or more, but can be less if control is evident) in one business, and the same trust or estate, or its fiduciaries/beneficiaries, controls another business, those businesses are affiliated. Control can be direct or indirect.
A family trust owns 60% of 'Company A.' The same family trust's sole beneficiary also owns 70% of 'Company B.' The lender must deem Company A and Company B affiliated due to common ownership and control through the trust/beneficiary, and combine their revenues 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
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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