4. Applicant`s total compensation: complete the total amount charged to the applicant. Add a detailed schedule if the compensation exceeds the amounts listed in the form. Make sure you have the most up-to-date form – the SBA released a new version of Form 159 in September 2018, valid for credit programs 7 (a) and 504. This is the only version currently accepted and expires on August 31, 2021. If the compensation exceeds $2500, the agent must add a calendar that breaks down: To minimize errors associated with ambiguous spelling, you should enter the information directly into the form using a PDF reader like Adobe Reader. If you use Chrome, the form can be automatically opened on a new tab and contains fields that you can enter. If not, fill out the form neatly by hand in dark ink. Write down the name of the agent you used next to Services Performed by. In addition to the Contact Person agent, enter the full name of the person you worked with. Then indicate your agent`s mailing address next to the Address agent. This form is not complicated. But knowing if you need it can be a little difficult.
The SBA recognizes that applying for one of its loans can be a difficult task and that potential borrowers may wish to obtain assistance from third parties who are collectively known as agents who provide paid services that contribute to the acceleration of SBA loans. SBA 504 loans, among other things, have certified development companies (CDCs) that charge royalties. According to Form 159, some borrowers who assist borrowers in providing on-demand assistance are required to identify their nature (for example. B brokers or credit brokers), the type of services they provide and the total compensation paid to credit claimants. While the exact composition of Form 159 varies between the three SBA loan programs, the aim is to ensure that applicants do not scam candidates by charging exorbitant fees or charging the SBA`s refusal to candidates who run themselves. This is not the first form to appear in an online search since November 2018. You can usually view the updated version through your lender or on the SBA website. Check the top right corner to make sure the form has not expired. Form SBA 159 is neither an application form nor a loan form. This is a „booking form and compensation agreement“ that you may have to file as part of your SBA loan application if you or your lender hires a credit officer, referral agent, broker, accountant, lawyer or advisor to help them prepare or secure your SBA loan. In this section, we repeat what we have dealt with here: what matters as an agent and when this form needs to be negotiated. This depends on several factors, such as the .
B of the amount you ask for, and the complexity of your application. Reasonable compensation could be between 500 and 4,500 $US. In this next step, fill out the chart with information about how much you and your SBA lender paid for the following services: The SBA 159 form contains details of where you received your help and the amount you paid. This way, SBA can be sure that you will not be scammed. You would also use this form to indicate if your lender has paid a fee to a partner agency such as SmartBiz for the referral as a borrower. As a general rule, you must fill out a form for each agent you have hired. If you work with an agent who has already performed SBA services, they should have an idea of what the SBA considers a reasonable fee for the amount of work it does for you. If not, you should consult the SBA or your lender to check. If the SBA thinks you paid too much, your lender may be forced to repay some of its compensation.
You are not required to report your CDC fees in this form. However, if the CDC has charged your lender a referral fee, the SBA considers it to be a recommendation officer.