Glossary · The loan itself
Close family relationship
In short
For SBA purposes, this refers to a spouse, child, parent, or sibling. It's crucial for determining affiliation and eligibility.
What it means in a deal
If individuals with a close family relationship control two or more businesses, those businesses are often considered affiliated by the SBA. This can impact the size standard and overall eligibility for a 7(a) loan. Always disclose such relationships.
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 Close family relationship
- When does a 'close family relationship' between owners of separate businesses trigger identity of interest affiliation for SBA 7(a) loans?
- Are there specific restrictions on the relationship of a non-family gift donor for equity injection?
- How can a gift from a close family member contribute to my equity injection for a $600,000 business purchase?
- When does familial relationship between owners of separate businesses trigger affiliation for size?
- When does a prior contractual relationship create affiliation for 7(a) size determination?
- What is the fastest a typical SBA 7(a) business acquisition loan can close?
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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