Glossary · Reading the business
shared use of critical resources
In short
When two or more businesses rely on the same essential assets, facilities, or personnel. This is a factor the SBA uses to determine if businesses are "affiliated."
What it means in a deal
If the business you're buying shares key operational components (e.g., office space, equipment, employees, or management) with another business owned by the seller or related parties, the SBA might consider them affiliated. This can consolidate their revenues and employee counts, potentially pushing the acquired business over the SBA's size standard and making it ineligible for a 7(a) loan.
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 shared use of critical resources
- What resources are available to help me find an SBA-approved lender?
- How do potential conflicts of interest with the seller, like shared services, affect approval?
- When underwriting a 7(a) loan, how does a lender ensure that personal resources of the principals are properly considered in the global cash flow analysis?
- What if the seller of a business remains a key employee after closing for a critical transition period?
- Are businesses with shared facilities or equipment considered affiliated for SBA size standards?
- When does a shared resource agreement create affiliation for SBA size standard calculations?
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.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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.