SBA SOP 50 10 8.1, A.Ch4.E.7 — Disclosure of Fees – SBA Form 159

SOP 50 10 8.1 A.Ch4.E.7

Effective 2026-10-01 · publisher's stamp for this provision

7. Disclosure of Fees – SBA Form 159 Section 13 of the Small Business Act (15 U.S.C. § 642) requires that an Applicant identify the names of Persons (as defined in 13 CFR § 120.10) engaged by or acting on behalf of the Applicant for the purpose of expediting the application and the fees paid or to be paid to any such Person. SBA regulations at 13 CFR § 103.5 require the Applicant, CDC, and any Agent to execute and provide to SBA a compensation agreement (“Agreement”). Each Agreement governs the compensation charged for services rendered or to be rendered to the Applicant or CDC in any matter involving SBA assistance. a. CDCs must identify in the SBA Loan System whether an Agent was involved in any way with the transaction and provide the name, street address, city, state, and zip code of the Agent. For Applications involving an Agent, SBA Form 159 can be generated using the SBA Loan System. b. For Agents other than professional services contractors performing duties for the CDC under an SBA-approved professional services contract, if the Agent is paid by an Applicant or CDC, an SBA Form 159 must be completed in accordance with form instructions and signed by the Applicant, the Agent, and the CDC. Do not report fees paid for the Third Party Lender’s loan on SBA Form 159. Separate SBA Forms 159 must be completed for each Agent who provides services to the Applicant. Failure of an Agent to fully complete and execute the required SBA Form 159 may result in suspension or revocation of the Agent’s privilege to conduct business with SBA under 13 CFR Part 103. c. SBA Form 159 “Fee Disclosure Form and Compensation Agreement” i. Information on this form will be used to monitor fees charged by Agents and the relationship between Agents and CDCs. CDCs must complete all appropriate data fields on SBA Form 159 in accordance with the form instructions. For example, the seven-digit FIRS number must be included exactly as assigned by SBA and without any extra characters. ii. If the aggregate compensation for all fees provided by the same Agent exceeds $2,500, the compensation must be itemized. a) When an Agent charges an Applicant in connection with multiple applications (for example, an Applicant is seeking a 504 loan and a 7(a) loan): i) Separate SBA Forms 159 must be completed for each application and for each Agent. ii) Fees are aggregated to establish the $2,500 threshold for itemization. b) When the Agent provides multiple services (for example, an Agent is providing both loan packaging and referral services to the Applicant), each service must be separately reported on the same SBA Form 159. For example: i) In the “Type of Agent” section, select both the “Independent Loan Packager” and the “Referral Agent/Broker” boxes; and ii) In the “Type of Service” table, separately itemize the amounts paid in each appropriate box. c) In-kind compensation (i.e., non-monetary contributions for goods or services) paid or to be paid by the CDC must be itemized. iii. The following are not considered Agents for purposes of this Agreement and are not required to complete SBA Form 159: a) 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; b) A state-certified or state-licensed appraiser employed by the CDC to appraise collateral in connection with the SBA Loan; c) A professional services contractor performing services for the CDC under an SBA-approved professional services contract; d) An environmental professional employed by the CDC to conduct an environmental assessment of the collateral in connection with the SBA Loan; e) Any attorney in connection with the SBA Loan closing; and f) A real estate agent who is receiving a commission for the sale of real estate in connection with the SBA Loan. iv. CDCs must upload a copy of the completed SBA Form 159, signed by all applicable parties, along with any required supporting documentation into the Corporate Governance Repository within 30 calendar days after the debenture funds. The CDC must provide a list of all SBA Form 159 submissions in the Annual Report (SBA Form 1253) for the fiscal year. A separate Form 159 must be completed for each application when an Agent provides services to an Applicant in connection with multiple applications. CDCs are required to retain an original signature version of the form and all supporting documentation in their files for compliance review purposes.

Source: SBA SOP 50 10 8.1, A.Ch4.E.7 — Disclosure of Fees – SBA Form 159 · source URL · snapshot 0fb0c4692cf52938