Glossary · Reading the business
In short
SBA rules that determine if one business is controlled by or connected to another, even if not formally owned. This matters for size standards and eligibility.
If you or a "key principal" in your acquisition already own or control other businesses, the SBA combines their revenues and employee counts to determine if you still meet the small business size standard. Your lender will use Form 1919 to identify all relevant entities. Hidden affiliations can disqualify your loan.
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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