Glossary · Reading the business
Common management
In short
Common management exists when two or more businesses share the same executive leadership or decision-makers. For a buyer, this is critical for understanding potential affiliation and its impact on SBA size standards.
What it means in a deal
The SBA considers businesses with common management to be affiliated, which can combine their revenues and employees for size standard purposes. If the target business shares management with other entities, it might exceed the SBA's size limits, making it ineligible. Thoroughly investigate management structures during due diligence to identify any potential affiliation issues.
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 Common management
- How does common management trigger affiliation for size standard purposes?
- How does common management trigger affiliation for SBA size standard purposes?
- How does the SBA determine affiliation between two businesses if they share common management but no common ownership?
- What constitutes 'common management' triggering affiliation for SBA 7(a) size determination?
- How does common management between multiple businesses trigger affiliation for SBA size purposes?
- What factors are considered when evaluating affiliation between businesses that share common management?
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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