Glossary · People and paperwork
Common officer
In short
An individual holding management positions or ownership stakes in two or more businesses. This matters because it can trigger "affiliation" rules for SBA loans, meaning the businesses are treated as one for size standard purposes.
What it means in a deal
When a lender reviews your SBA loan application, they look for any common officers between your target business and other businesses you own or manage. If affiliation is found, all businesses' revenues and employees are combined to determine if the target business still qualifies as "small." Always disclose such relationships early.
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 officer
- What is the role of an SBA Business Development Officer (BDO) in my loan process?
- What specific factors trigger affiliation for size standards based on common management, officers, or directors?
- How are common officers or shared key employees between businesses evaluated for affiliation under SBA size standards?
- Beyond common officers/directors, how does a lender assess affiliation through "shared key employee functions" for SBA size standards?
- What specific scenarios involving shared directors, officers, or key employees constitute 'common management' triggering affiliation for SBA size determination?
- How does the SBA determine affiliation between two businesses if they share common management but no common ownership?
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.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.