Glossary · People and paperwork
In short
Related parties are individuals or entities with a close relationship to the borrower or seller, such as family members or affiliated businesses. The SBA scrutinizes these relationships for potential conflicts.
The SBA requires disclosure of all related parties involved in the loan transaction, including owners, management, and family members. Any transactions between related parties, like asset sales or loans, must be at arm's length and commercially reasonable to prevent fraud or unfair advantage. Be transparent 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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