Affiliation
SBA rules treating commonly controlled firms as one business for size purposes, aggregating their receipts and employees.
Affiliation arises when one business controls or has the power to control another, or a third party controls both. When firms are affiliated, the SBA aggregates their receipts and employees to determine size, which can push a firm over a size standard. Control can stem from ownership, management, common investments, contractual relationships, economic dependence, or family ties (the 'identity of interest' rule). Key exceptions include the mentor-protégé joint venture exemption. Affiliation is a common basis for size protests.
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