SBA rules · SOP 50 10 8.1
Can a broker or consultant charge a fee on an SBA loan?
Yes, a broker or consultant may charge fees to an applicant or receive a referral fee from a lender, subject to SBA percentage caps, an absolute ban on contingency fees, and mandatory disclosure on SBA Form 159.
Quoted from SBA SOP 50 10 8.1Every quote checked word for word
In detail
- Applicant fees and percentage caps: An agent may charge the applicant for packaging, consulting, and broker or referral services on an hourly or percentage basis. For percentage fees, charges cannot exceed 3% on loans of $50,000 or less; 2% for loans between $50,000 and the first $1,000,000 plus 0.25% on the portion over $1,000,000; and the aggregate fee cannot exceed $30,000. Hourly rates have no dollar cap, but the hourly rate and time spent must be documented, reasonable, and customary.
- Prohibited agent fee structures: SBA strictly prohibits agents from charging a flat or standard fee to all applicants, charging contingency fees paid only if the loan is approved or closed, or charging for services that are not reasonably necessary.
- Lender-paid referral fees: A referral agent may be employed and compensated by either an applicant or a lender, but not both for the same service. An agent may receive packaging fees from the applicant and a referral fee from the lender only when providing different services. The lender cannot pass referral charges through to the borrower, cannot pay fees contingent on approval or closing, and cannot share secondary market sale premiums with referral sources.
- Disclosure requirements (SBA Form 159): Any agent compensated by an applicant or lender must execute SBA Form 159 alongside the applicant and lender or CDC. If aggregate fees paid to the same agent exceed $2,500, an itemization of compensation and supporting documentation must be attached to the form.
- Submission deadlines: For 7(a) loans, the lender must upload the signed SBA Form 159 into the SBA Loan System within two Form 1502 reporting cycles following initial disbursement. For 504 loans, the CDC must upload the completed form into the Corporate Governance Repository within 30 calendar days after the debenture funds.
The source
What the SOP says
“An Agent may charge an Applicant fees for packaging and other services based on an hourly rate or on a percentage of the loan amount. In either case, all fees over $2,500 must be supported by documenting the service performed.
“The maximum fee that may be charged in the aggregate to an Applicant on a percentage basis is $30,000.
“A standard or flat fee charged to all Applicants;
“Contingency fees (fees paid only if the loan is approved or closed); or
“The only situation where an Agent can receive compensation from both the Lender and the Applicant is when the Agent is providing different services by providing packaging services to the Applicant and receiving a referral fee from the Lender.
“Share any portion of the premium received from the sale of an SBA-guaranteed loan in the Secondary Market with a Service Provider, Packager, or other non-employee loan referral source.
“If the aggregate compensation for all fees provided by the same Agent exceeds $2,500, an itemization of the compensation received and supporting documentation must be attached to the Form 159.
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This page quotes the SBA's Standard Operating Procedure 50 10 8.1. Lenders can ask for more than the SBA minimum. It is general information, not a loan approval or legal advice.