Glossary · People and paperwork
In short
Any close connection between parties involved in the loan, like family members, business partners, or affiliates. The SBA scrutinizes these relationships to ensure arm's length transactions.
The SBA defines "associates" broadly. If you're buying a business from a family member or a current partner, the SBA will require additional scrutiny and documentation, including a formal valuation, to ensure the deal is legitimate and fair. Disclose all relationships upfront to avoid delays.
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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