Glossary · Reading the business
In short
When two or more businesses rely on the same essential assets, facilities, or personnel. This is a factor the SBA uses to determine if businesses are "affiliated."
If the business you're buying shares key operational components (e.g., office space, equipment, employees, or management) with another business owned by the seller or related parties, the SBA might consider them affiliated. This can consolidate their revenues and employee counts, potentially pushing the acquired business over the SBA's size standard and making it ineligible for a 7(a) 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.
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