Glossary · Reading the business
Affiliated businesses
In short
These are businesses related by ownership or control. The SBA combines their financials and employee counts to determine if you meet size standards and other eligibility criteria.
What it means in a deal
The SBA applies strict affiliation rules to prevent larger businesses from using the 7(a) program. If the seller has other businesses where they hold significant ownership or control, the SBA will aggregate their revenues and employee counts with the target business. This can impact the SBA size standard and eligibility for the loan. Your lender will scrutinize this carefully.
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 Affiliated businesses
- 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?
- What is the maximum amount of money a single borrower or group of affiliated businesses can owe across all SBA 7(a) loans?
- 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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