SBA 7(a) Q&A
Short answer
Common management triggers affiliation when individuals or entities share management or control over multiple businesses, combining their size for eligibility.
If the same person or group of people manage or have the power to control the day-to-day operations of two or more businesses, those businesses are considered affiliates. This aggregation of size ensures that only truly small businesses receive SBA assistance.
If you are the CEO of Business A (the applicant) and also sit on the board of directors and make operational decisions for Business B, then Business A and Business B would be considered affiliated, and their revenues/employees combined for size standard purposes.
SOP 50 10 - Lender and Development Company Loan Programs
13 CFR Part 121 - Small Business Size Regulations
Affiliation and Lending Criteria for SBA Business Loan Programs - Final Rule
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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