Glossary · People and paperwork
In short
These are business or personal relationships that exist but are not revealed, potentially impacting the deal's fairness, eligibility, or terms. The SBA is very strict about identifying all affiliations.
The SBA has complex affiliation rules to determine if a business meets size standards or if a transaction is truly "arm's length." Failing to disclose common management, ownership, or contractual ties between entities can lead to loan denial or even fraud allegations. Be transparent on Form 1919.
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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