Sba 159 Fee Disclosure Form And Compensation Agreement

OMB Approval No. 3245-0201
Expiration Date: 08/31/2008

FEE DISCLOSURE FORM AND COMPENSATION AGREEMENT
For Agent Services In Connection With an SBA 7(a) Loan
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 or packager 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 SBA loan applicant
(“Applicant”) or lender in any matter involving SBA assistance. “Agent” includes a lender, loan packager,
referral agent, accountant, attorney, consultant or any other party that receives compensation from representing an
applicant for 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 www.sba.gov/library.)
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.
If an Applicant chooses to employ an Agent (which may be the Lender or a third party) to represent the Applicant,
compensation an Agent 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 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 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 of any of these rules may result in SBA’s
suspension or revocation of the Agent’s privilege of conducting business with SBA.
The following are not considered Agents for purposes of this Agreement and, therefore, are not required to
complete this Agreement: 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 statelicensed appraiser employed by the Lender to appraise collateral in connection with the SBA loan; 3) an
environmental professional employed by the lender to conduct an environmental assessment of the collateral in
connection with the SBA loan; and 4) 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
Agreement.
Instructions on completion of this form: This form must be completed in connection with a loan application if 1)
the Applicant has paid (or will be paying) compensation to an Agent or 2) if the Lender has (or will be paying) a
referral fee. There must be a completed Agreement 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.

PLEASE NOTE: The estimated burden for completion of this Form 159 is 5 minutes per response. You are not required to respond to this information collection
unless it displays a currently valid OMB approval number. Comments on the burden should be sent to U.S. Small Business Administration, Chief, Administrative
Information Branch, Washington, D.C. 20416, and Desk Officer for SBA, Office of Management and Budget, New Exec. Office Building, Room 10202, Washington,
D. C. 20503. PLEASE DO NOT SEND FORMS TO OMB.

SBA Form 159 (7a) (7-05) Ref SOP 50 10 and 70 50. Previous editions obsolete.

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Loan applicant name:
Loan applicant business name (if any):

Agent’s Agreement: By signing this Agreement, the undersigned Agent agrees that it has not nor will not directly or
indirectly charge or receive any payment in connection with the application for or making of the SBA loan except for
services actually performed on behalf of Applicant and identified in this Agreement. The undersigned Agent certifies
that the information provided in this Agreement accurately describes the type of services it has provided to the
Applicant and that the compensation described in this Agreement is the only compensation that has been charged to or
received from the Applicant or that will be charged to the Applicant as an Agent for services covered by this
Agreement. False certifications can result in criminal prosecution under 18 U.S.C. § 1001 and other penalties

provided under law.
Type of agent:
□ Independent loan
packager

□ Lender compensated
by applicant for loan
packaging services

□ Referral agent
employed by applicant

□ Other (describe):

□ Referral services paid
by applicant

□ Other (describe):

Type of services agent provided to applicant:
□ Loan packaging

□ Financial statements
specifically for the
application

Total compensation charged to applicant:

$________________________

If the amount exceeds $2,500: For the entire compensation charged, attach a separate schedule itemizing 1)
the services performed; and 2) the hourly rate and the number of hours billed for that service.

Agent Name and Signature:

By ______________________________________
(Signature of agent)

__________
(Date)

_____________________________________________
(Name of agent – please print)
____________________________________________________________________
(Business name of agent – please print)
_____________________________________________________________________
(Business address of agent including zip code)
_____________________________________________________________________
(Business address cont.)

Applicant’s Certification: The undersigned Applicant certifies to SBA that the above representations and amounts are
the only amounts paid by the Applicant in connection with the services covered by the Agreement and are satisfactory to
the Applicant. False certifications can result in criminal prosecution under 18 U.S.C. § 1001 and other penalties

provided under law.
_______________________________________
(Applicant’s Name)

By:________________________________________
(Signature of authorized representative)

___________________________________________
(Name of authorized representative – please print)

SBA Form 159 (7a) (7-05) Ref SOP 50 10 and 70 50. Previous editions obsolete.

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_____________
(Date)

Lender’s Certification: The undersigned 7(a) participating lender certifies that the representations of services rendered
and amounts charged as identified in this Agreement are reasonable and satisfactory to it. The undersigned further
certifies that any referral fees described below are the only referral fees paid by the lender to a referral agent in connection
with this loan, and were not charged directly or indirectly to the Applicant. False certifications can result in criminal

prosecution under 18 U.S.C. § 1001 and other penalties provided under law.
___________________________________
(Name of referral agent – please print)

______________________________________________

________________________________

(7(a) lender name)

By:_________________________________

(Business name of agent – please print)

_________

(Signature of authorized lender representative)

________________________________________

(Date)

(Business address of agent including zip code)

___________________________________
________________________________________

(Name of authorized lender representative – please print)

(Business address cont.)

Referral fee paid, if any: $____________________

SBA Form 159 (7a) (7-05) Ref SOP 50 10 and 70 50. Previous editions obsolete.

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