Glossary · Reading the business
In short
This refers to another business that is controlled by or shares common ownership or management with the target business. Buyers must understand affiliation rules because they impact SBA size standards and eligibility.
The SBA has strict affiliation rules to determine if a business, when combined with others, exceeds size standards for the 7(a) program. This is critical if you or the seller have other businesses. Disclose all potential affiliations upfront to your lender to avoid eligibility issues.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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