Glossary · Reading the business
In short
These are businesses related by ownership or control. The SBA combines their financials and employee counts to determine if you meet size standards and other eligibility criteria.
The SBA applies strict affiliation rules to prevent larger businesses from using the 7(a) program. If the seller has other businesses where they hold significant ownership or control, the SBA will aggregate their revenues and employee counts with the target business. This can impact the SBA size standard and eligibility for the loan. Your lender will scrutinize this carefully.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
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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