FEE DISCLOSURE FORM AND COMPENSATION AGREEMENTFee Disclosure Form and Compensation Agreement • March 25th, 2020
Purpose of this form: Section 13 of the Small Business Act requires that an SBA disaster loan applicant (“Applicant”) identify the names of persons engaged by or on behalf of the Applicant for the purpose of expediting the application and the fees paid or to be paid to any such person. 13 C.F.R., Part 103.5 requires any agent or packager to execute and provide to SBA a compensation agreement (“Agreement”). SOP 50-30, Appendix 14 defines how the reasonableness of fees may be determined. Each Agreement governs the compensation charged for services rendered or to be rendered to the Applicant in any matter involving SBA assistance. “Agent” includes a loan packager, accountant, attorney, consultant, engineer, architect, appraiser, or any other party that receives compensation from representing an Applicant for an SBA disaster loan.
FEE DISCLOSURE FORM AND COMPENSATION AGREEMENTFee Disclosure Form and Compensation Agreement • September 1st, 2020
SBA does not require an Applicant to engage the services of any Agent to file an application or close a loan. No fees or compensation will be reimbursed or paid by SBA to any Agent. If an Applicant chooses to employ an Agent, the compensation an Agent charges to and that is paid by the Applicant must bear a necessary and reasonable relationship to the services actually performed and must be comparable to those charged by other Agents in the geographical area. Compensation cannot be contingent on loan approval. In addition, compensation must not include any expenses which are deemed by SBA to be unreasonable or that are prohibited by SBA rules or SOP 50-30. If the compensation is determined by SBA to be unreasonable the Agent must reduce the compensation to an amount SBA deems reasonable, refund to the Applicant any sum in excess of the amount SBA deems reasonable, and refrain from charging or collecting directly or indirectly from the Applicant an amount in excess of the amount SBA dee
FEE DISCLOSURE FORM AND COMPENSATION AGREEMENTFee Disclosure Form and Compensation Agreement • February 9th, 2016
Purpose of this form: Section 13 of the Small Business Act (15 U.S.C. § 642) requires that a small business SBA loan applicant (“Applicant”) identify the names of persons engaged by or on behalf of the Applicant for the purpose of expediting the application and the fees paid or to be paid to any such person. 13 C.F.R. Section 103.5 requires any Agent to execute and provide to SBA a compensation agreement showing the compensation charged for services rendered or to be rendered to the Applicant or lender in any matter involving SBA assistance. “Agent” includes a loan packager, referral agent, broker, accountant, attorney, consultant or any other party that receives compensation from representing an Applicant or lender in connection with an SBA loan. (13 C.F.R. Part 103 and sections 120.221 and
SBA Procedural NoticeFee Disclosure Form and Compensation Agreement • October 8th, 2009
As of October 1, 2005, SBA Form 159, Compensation Agreement for Services in Connection with Applicant and Loan, has been revised. It is now titled “Fee Disclosure Form and Compensation Agreement.” In addition, there is a separate version of Form 159 for each of the three loan programs: the 7(a) loan program [159 (7a)]; the 504 loan program [159 (504)]; and the Disaster loan program (159D). This notice covers only the 7(a) and 504 loan programs.
FEE DISCLOSURE FORM AND COMPENSATION AGREEMENTFee Disclosure Form and Compensation Agreement • April 21st, 2015
A CDC is limited by regulation to charging an Applicant up to 1.5 percent of the net debenture to cover the CDC’s costs associated with all activities required to process the 504 loan request including screening and packaging the loan. Two thirds of this fee is considered earned and may be collected by the CDC when the 504 loan authorization for the debenture is issued by SBA. At the time of application, the CDC may require a deposit of the fee from the Applicant. The deposit may be up to $2,500 or 1 percent of the net debenture amount, whichever is less. The deposit must be refunded if the application is denied. If the Applicant withdraws its application, the CDC may deduct from the deposit reasonable costs incurred in packaging and processing the application. The 1.5 percent fee (and any deposit towards the fee) does not have to be reported as part of this form.
FEE DISCLOSURE FORM AND COMPENSATION AGREEMENTFee Disclosure Form and Compensation Agreement • April 23rd, 2007
A 7(a) participating lender (“Lender”) may charge an Applicant reasonable fees for packaging services that are customary for similar lenders in the geographic area where the loan is being made. The Lender must advise the Applicant in writing that the Applicant is not required to obtain or pay for these services if they are unwanted. The Lender cannot charge an Applicant any commitment, bonus, broker, commission, referral or similar fee.
FEE DISCLOSURE FORM AND COMPENSATION AGREEMENTFee Disclosure Form and Compensation Agreement • January 6th, 2012
Purpose of this form: Section 13 of the Small Business Act (15 USC §642) requires that a small business SBA loan applicant (“Applicant”) identify the names of persons engaged by or on behalf of the Applicant for the purpose of expediting the application and the fees paid or to be paid to any such person. 13 C.F.R., Part 103.5 requires any Agent to execute and provide to SBA a compensation agreement (“Agreement”) showing the compensation charged for services rendered or to be rendered to the Applicant or lender in any matter involving SBA assistance. “Agent” includes a loan packager, referral agent, broker, accountant, attorney, consultant or any other party that receives compensation from representing an Applicant in connection with an SBA loan. (13 C.F.R. Part 103 and sections 120.883, 120.926, 120.935, 120.971, and 120.972 contain the rules governing compensation of Agents or Certified Development Companies (“CDC”) in connection with packaging and processing a 504 loan. These rules m
FEE DISCLOSURE FORM AND COMPENSATION AGREEMENTFee Disclosure Form and Compensation Agreement • August 5th, 2014
Purpose of this form: Section 13 of the Small Business Act (15 U.S.C. § 642) requires that a small business SBA loan applicant (“Applicant”) identify the names of persons engaged by or on behalf of the Applicant for the purpose of expediting the application and the fees paid or to be paid to any such person. 13 C.F.R. Part 103.5 requires any Agent to execute and provide to SBA a compensation agreement (“Agreement”) showing the compensation charged for services rendered or to be rendered to the Applicant or lender in any matter involving SBA assistance. “Agent” includes a loan packager, referral agent, broker, accountant, attorney, consultant or any other party that receives compensation from representing an Applicant in connection with an SBA loan. (13 C.F.R. Part 103 and sections 120.221, and 120.222 contain the rules governing compensation of Agents in connection with a 7(a) loan. These rules may be found at the electronic code of federal regulations website.)
FEE DISCLOSURE FORM AND COMPENSATION AGREEMENTFee Disclosure Form and Compensation Agreement • April 23rd, 2007
A CDC is limited by regulation to charging an Applicant up to 1.5 percent of the net debenture to cover the CDC’s costs associated with all activities required to process the 504 loan request including screening and packaging the loan. Two thirds of this fee is considered earned and may be collected by the CDC when the 504 loan authorization for the debenture is issued by SBA. At the time of application, the CDC may require a deposit of the 1.5 percent fee from the Applicant. The deposit may be up to $2,500 or 1 percent of the net debenture amount, whichever is less.
