Glossary · People and paperwork
Affiliate
In short
An affiliate is a business or person connected to the borrower or seller, often through ownership, management, or contractual relationships. The SBA considers affiliates when determining size standards and eligibility for a 7(a) loan.
What it means in a deal
The SBA's affiliation rules are complex; if you or the seller have other businesses, the SBA will aggregate their financials to determine if the combined entity meets size standards. This can make an otherwise eligible business ineligible, so disclose all potential affiliations.
Official sources
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.
Related terms
Common questions about Affiliate
- How does a lender handle an SBA 7(a) loan where the borrower intends to lease property from an affiliate?
- What are the implications for a lender if the SBA discovers an undisclosed affiliate post-closing on a 7(a) loan?
- What are the personal guaranty requirements for owners and affiliates?
- What is the maximum aggregate outstanding loan amount for a single 7(a) borrower, including affiliates?
- Are businesses with shared facilities or equipment considered affiliated for SBA size standards?
- How does the SBA determine 'small business' size for an applicant with multiple affiliated entities?
Defined by CapBench 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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