Glossary · Reading the business
Affiliated Business
In short
This refers to another business that is controlled by or shares common ownership or management with the target business. Buyers must understand affiliation rules because they impact SBA size standards and eligibility.
What it means in a deal
The SBA has strict affiliation rules to determine if a business, when combined with others, exceeds size standards for the 7(a) program. This is critical if you or the seller have other businesses. Disclose all potential affiliations upfront to your lender to avoid eligibility issues.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Affiliated Business
- Are businesses with shared facilities or equipment considered affiliated for SBA size standards?
- What specific criteria determine if two businesses are affiliated due to 'identity of interest' for size standards?
- How does the SBA determine if multiple businesses are affiliated for size standard purposes based on common ownership?
- What is the maximum loan amount an affiliated group of businesses can receive under the 7(a) program?
- How does the SBA determine 'small business' size for an applicant with multiple affiliated entities?
- What is the maximum amount of money a single borrower or group of affiliated businesses can owe across all SBA 7(a) loans?
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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