SBA rules · SOP 50 10 8.1

Do affiliated businesses count toward SBA size and loan limits?

Yes, affiliated businesses count toward both SBA size determinations and maximum SBA loan and guaranty limits.

Quoted from SBA SOP 50 10 8.1Every quote checked word for word

In detail

Size standard eligibility: In determining size, SBA counts the receipts, employees, or net worth and net income of the Applicant along with all domestic and foreign affiliates, regardless of whether the affiliates are for-profit. Under the Industry Size Standard, the Applicant alone and the Applicant combined with affiliates must meet applicable size caps; under the Alternative Size Standard, the Applicant combined with affiliates cannot exceed $20 million in tangible net worth and $6.5 million in average two-year net income.
7(a) loan and guaranty caps: If affiliation exists, SBA loan maximums apply to the Applicant and all affiliates as if all were a single business. Across all 7(a) loans, the total outstanding balance of SBA's guaranty to any one business and its affiliates cannot exceed $3,750,000, including revolving lines of credit and existing loans.
504 debenture limits: Across all 504 projects, the gross debenture is capped at an aggregate outstanding maximum balance of $5,000,000 for each small business concern including its affiliates, except for small manufacturers and eligible energy projects, which may reach $5,500,000 per project.
Multiple 7(a) loans within 90 days: When two or more 7(a) loans with maturities exceeding 12 months are approved for an applicant and its affiliates within 90 days, the gross loan amounts are combined as one loan to determine the maximum guaranty percentage and calculate the upfront guaranty fee.

The source

What the SOP says

“In determining the concern's size, SBA counts the receipts, employees (see 13 CFR § 121.201), or the alternate size standard (if applicable) of the concern whose size is at issue and all of its domestic and foreign affiliates, regardless of whether the affiliates are organized for profit.

SOP 50 10 8.1, Chapter 1: Primary Applicant Eligibility Requirements > Determining the Concern's Size (lines 383-387)✓ Verified

“The Applicant alone (without affiliates) must not exceed the small business size standard for the industry in which the Applicant is primarily engaged, and the Applicant, when combined with its affiliates, must not exceed the size standard designated for either the primary industry (defined in 13 CFR § 121.107) of the Applicant alone or the primary industry of the Applicant and its affiliates, whichever is higher.

SOP 50 10 8.1, Chapter 1: Primary Applicant Eligibility Requirements > Size Standards (lines 348-353)✓ Verified

“If affiliation exists, SBA’s loan maximums apply to the Applicant, including all affiliates, as if all were a single business.

SOP 50 10 8.1, Chapter 1: Standard 7(a) Loans (Loans greater than $350,000) > Maximum Loans to Businesses with Affiliates (lines 1606-1607)✓ Verified

“The maximum dollar amount outstanding of SBA’s guaranty to any one business and its affiliates must not exceed $3,750,000 (13 CFR § 120.151).

SOP 50 10 8.1, Appendix 16: 7(a) Maximum Guaranty Amounts and Percentages > General Requirements (lines 5327-5330)✓ Verified

“For all 504 Projects, the gross debenture is limited to an outstanding maximum balance of $5,000,000 in the aggregate for each small business concern, including its affiliates, except for Eligible Energy Public Policy Projects and Projects for Small Manufacturers in c. and d. below.

SOP 50 10 8.1, Chapter 1: Eligibility through Submission of Application > The minimum dollar amount for a debenture is $25,000. 13 CFR § 120.930(b) (lines 3377-3378)✓ Verified

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