On Sept. 28, 2018 the Small Business Administration proposed a rule to amend regulations governing its business loan programs. A component of the proposal would amend the affiliation principles applicable to applicants for certain assistance programs. Specifically, the rule would expand the principle of affiliation to include common investments and economic dependence through contractual or other relationships. Through a recent Comment Letter, WBA expressed concern the proposed rule would put many Wisconsin small businesses and family farms who contract with larger businesses at risk of being deemed an affiliated company, hindering lending to those small businesses engaged in agriculture.
By, Eric Skrum