Glossary · People and paperwork
In short
This occurs when the same people sit on the boards of directors for multiple companies. It's a red flag for potential conflicts of interest or affiliation issues that the SBA cares about.
The SBA scrutinizes interlocking directorates because they can indicate common management and control, triggering affiliation rules. If the seller or their key employees serve on the boards of other businesses, the SBA may consider those businesses affiliated, potentially impacting the target business's eligibility based on size standards. Always disclose these relationships.
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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