Glossary · Reading the business
In short
A relationship between parties that suggests they are not truly independent or acting at arm's length, such as family members or affiliated businesses. The SBA scrutinizes these relationships to prevent conflicts and ensure fair market value.
The SBA defines identity of interest broadly to include immediate family members, common management, or shared ownership in affiliated businesses. If an identity of interest exists between the buyer and seller, or between the buyer and other parties in the deal (e.g., a landlord), the SBA will scrutinize the transaction terms, such as real estate leases or asset valuations, to ensure they are at arm's length.
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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