Glossary · People and paperwork
Affiliated Party
In short
This refers to individuals or entities that are related to or have control over the borrower or the target business. The SBA scrutinizes these relationships to ensure fair dealings and prevent conflicts of interest.
What it means in a deal
The SBA has strict rules about affiliation, especially regarding business size and relationships between parties. If you or the seller have other businesses, or if there's common management or ownership, the SBA might deem them affiliated. This can impact eligibility, as the combined size of all affiliated businesses must still meet SBA size standards.
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 Party
- 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?
- Can a third-party loan, not from the seller, count towards the minimum equity injection?
- What specific language must a non-SBA third-party standby agreement include to ensure eligibility?
- What specific criteria determine if two businesses are affiliated due to 'identity of interest' for size standards?
- What specific circumstances allow a franchisor to be considered affiliated with a franchisee for SBA size purposes?
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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