Sba Form 159 Fee Disclosure Form And Compensation Agreement printable pdf download

OMB Approval No. 3245-0201

Expiration Date: 10/31/2017

FEE DISCLOSURE FORM AND COMPENSATION AGREEMENT

For Agent Services In Connection With a SBA 7(a) Loan

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

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, )

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 or its Associates cannot charge an Applicant any commitment, bonus, broker, commission, referral or similar

fee.

If an Applicant chooses to employ an Agent to represent the Applicant, compensation an Agent or the Lender

charges to and that is paid by the Applicant must bear a necessary and reasonable relationship to the services actually

performed. Compensation cannot be contingent on loan approval. In addition, compensation must not include any

expenses which are deemed by SBA to be unnecessary in connection with the loan application or are prohibited by

SBA rules. If the compensation is not permitted by SBA rules, the Agent or the Lender must cancel the

compensation, or refund to the applicant any portion the Applicant already paid. In cases where SBA deems the

amount of compensation unreasonable, the Agent or the Lender must reduce the compensation charged 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 deems

reasonable. Violation by an Agent or the Lender of any of these rules may result in SBA’s suspension or revocation

of the privilege of conducting business with SBA.

The following are not considered Agents for purposes of this form and, therefore, are not required to complete this

form: 1) Applicant’s accountant for the preparation of financial statements required by the Applicant in the normal

course of business and not related to the loan application; 2) a state-certified or state-licensed appraiser employed by

the Lender to appraise collateral in connection with the SBA loan; 3) a lender service provider operating under an

SBA-approved lender service provider agreement; 4) an individual employed by the Lender to perform a business

valuation in connection with the SBA loan; 5) an environmental professional employed by the lender to conduct an

environmental assessment of the collateral in connection with the SBA loan; 6) a real estate agent who is receiving a

commission for the sale of real estate in connection with the SBA loan; and 7) any attorney in connection with the

7(a) loan closing. In addition, direct costs associated with document preparation in connection with the loan closing

do not need to be reported in this form.

Instructions for completing this form: This form must be completed in connection with a loan application and

submitted to lender if: (1) the Applicant has paid (or will be paying) compensation to an Agent or the Lender or (2)

the Lender has (or will be paying) a referral fee. There must be a separate, completed Form 159(7a) for each Agent

compensated by the Applicant. If the certifications are made by a legal entity other than an individual (e.g.,

corporation, limited liability company), execution of the certification must be in the legal entity’s name by a duly

authorized officer or other representative of the entity; if by a partnership, execution of the certification must be in

the partnership’s name by a general partner. If the total compensation exceeds $2,500, the compensation must be

itemized. (An itemization is required even if the compensation charged is on a percentage basis.)

Sba Form 159 Fee Disclosure Form And Compensation Agreement

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