Glossary · Reading the business
Common Control
In short
When a single individual or entity has the power to control two or more businesses. This affects SBA size standards and affiliation rules.
What it means in a deal
The SBA uses common control to determine if businesses are affiliated, which can impact loan eligibility based on size standards. If you own or control other businesses, your combined revenues/employees might exceed the SBA's size limits for the target business. You need to disclose all affiliations to your lender.
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 Common Control
- How does the SBA determine "common control" when assessing affiliation for a management company providing services?
- How does the SBA determine affiliation between businesses controlled by a common trust?
- How does the SBA define 'total control' rule to determine affiliation for size standards?
- How does the SBA determine affiliation between two businesses if they share common management but no common ownership?
- What is the definition of "control" for affiliation purposes in a 7(a) loan application?
- How does the "control" principle trigger affiliation for purposes of determining a business's size standard?
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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