For SBA lenders
Short answer
Ownership by a private equity fund triggers affiliation if the fund has the power to control the applicant business, typically through majority ownership, board representation, or management agreements.
Private equity funds, as institutional investors, are subject to SBA affiliation rules. If a fund's investment structure, board control, or contractual agreements grant it the ability to direct or dominate the applicant business's management and policies, then all businesses within the fund's portfolio that it controls are aggregated for size purposes.
A private equity fund owns 60% of Company A and 70% of Company B. If Company A applies for a 7(a) loan, the fund's ownership means Company A and Company B are affiliated, and their revenues/employees must be combined to determine size eligibility.
13 CFR Part 121 - Small Business Size Regulations
SOP 50 10 - Lender and Development Company Loan Programs
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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