Glossary · Reading the business
In short
This refers to businesses that are connected through ownership, management, or contractual relationships. The SBA combines the revenues and employees of all affiliated businesses to determine if a business meets the size standard for a 7(a) loan.
If you or the seller own other businesses, the SBA will scrutinize those for affiliation. Even if they're separate legal entities, common ownership or shared management can trigger affiliation. This can impact the target business's eligibility for an SBA loan if the combined entity exceeds size standards.
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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