Glossary · Reading the business
In short
This is the SBA's process for determining if separate businesses are controlled by the same person or group, treating them as one entity for size standard purposes. It's crucial for confirming loan eligibility.
When buying a business, the lender will check if you or the seller have other businesses that might be "affiliated" under SBA rules. This can impact whether the target business, when combined with others, exceeds the SBA's size standard. Be transparent about all related business interests.
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.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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