SBA loan basics
Short answer
SBA defines 'affiliation' by various factors, like ownership, management, and contractual relationships, to determine if businesses are linked and should be combined for size standard calculations.
The SBA's affiliation rules aggregate the employees and revenues of all businesses deemed 'affiliated' to ensure that only truly small businesses receive assistance. Common bases for affiliation include ownership (e.g., a single entity owning 50% or more of another), common management, common identity of interest, and contractual relationships. If affiliated businesses together exceed the size standard, the applicant business is ineligible.
John owns 60% of Business A and 30% of Business B. Sarah owns 70% of Business B. John's ownership in Business B is less than 50%, but he has significant control. If the SBA determines John's businesses are affiliated due to common management or other factors, the employees and revenue of Business A and B would be combined to determine if either qualifies as 'small'.
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
SBA Table of Size Standards
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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