Does a spouse's business count toward SBA size?
Short answer
Only if the ownership test is met. SBA combines the interests of spouses and minor children in a business. It does not combine them when each holds an individual interest in a different business. Source: SOP 50 10 8.1, Sec. A, Ch. 1, Para. D.4.
A spouse's separate company does not automatically count. The rule is in 13 CFR § 121.301(f)(1)(vi) and SOP 50 10 8.1, Sec. A, Ch. 1, Para. D.4.
How the rule works
Ownership interests of spouses and minor children must be combined when SBA measures how much a person owns. If you own 30% of the applicant and your spouse owns 30%, SBA treats that as 60%. That crosses the more-than-50% line used in the affiliation tests.
The SOP adds a limit. Interests are not combined when spouses and minor children have individual ownership interests in different businesses. So if you own your company and your spouse separately owns a different one, those interests stay separate.
Entities count pro rata
SBA also looks through companies. In the regulation's example, someone owns 15% directly and all of a company holding 50%. SBA treats that person as owning 65% (§ 121.301(f)(1)(vii)).
Where else spouses matter
Combined ownership also drives the guaranty rule. A spouse owning less than 20% must guarantee in full if both spouses and minor children together own 20% or more. See Sec. A, Ch. 5, Para. A.
The credit elsewhere test also looks at the liquidity of spouses of 20% owners (Sec. A, Ch. 1, Para. H).
Ask lending partners about your loan
Tell us the amount you need and what it is for. We refer you to lenders that may fund businesses like yours, and it costs you nothing.
Janover Capital LLC is not a lender and is not the SBA. The lender makes the credit decision. A lender or marketplace may pay us a referral fee if we connect you, at no cost to you. Advertiser disclosure.