Glossary · People and paperwork
Related Entities
In short
These are businesses or individuals connected by common ownership, control, or family ties. The SBA scrutinizes these relationships closely to determine eligibility and size.
What it means in a deal
The SBA's affiliation rules aggregate the revenue and employees of related entities to determine if a business meets size standards. You must disclose all related entities, including those owned by the seller or yourself, on Form 1919. Undisclosed relationships can jeopardize your loan approval.
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 Related Entities
- What if a borrower has outstanding judgments or liens from non-federal entities?
- What happens if a borrower has outstanding judgments or liens from non-federal entities?
- Why does the SBA combine the size of related businesses when checking loan eligibility?
- How do shared investors in multiple entities trigger affiliation for SBA size standard calculations?
- What types of business entities are generally ineligible for an SBA 7(a) loan?
- How does a lender prevent a guaranty denial related to undisclosed affiliations identified post-closing?
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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