Fee Disclosure and Compensation Agreement
For use w
ith 7(a) and 504 Loan Programs
OMB Control No. 3245-0201
Expiration Date: 11/30/2024
SBA For
m 159 (08-21) Previous Editions Obsolete Page 1 of 4
Purpose of this form: The purpose of this form is to identify Agents and the fees and/or compensation paid to Agents by or
on behalf of a small business applicant (“Applicant”) for the purpose of obtaining or expediting an application for a loan
guaranteed by the U.S. Small Business Administration (SBA). This is a statutory requirement under 15 U.S.C. 642. See 13
CFR Parts 103 and 120 and SBA’s Standard Operating Procedure 50 10 for the rules governing compensation of Agents or
SBA Lenders in connection with an SBA loan.
Who must complete this form: This form must be completed and signed by the SBA Lender and the Applicant whenever an
Agent is paid by either the Applicant or the SBA Lender in connection with the SBA loan application. Each Agent paid by
the Applicant to assist it in connection with its application must also complete and sign the form. When an Agent is paid by
the SBA Lender, the SBA Lender must complete this form and the SBA Lender and Applicant must both sign the form. The
SBA Lender must inform the Applicant in writing that the Applicant is not required to employ an Agent or representative
(including the SBA Lender) to assist the Applicant with the SBA loan application.
Compensation must be disclosed on this form for the following services:
1. Loan packaging services, as defined in SOP 50 10, performed by an SBA Lender or other third party (this includes
services performed by an individual/entity that is a Lender Service Provider (LSP) (7(a) only) or has an SBA-
approved Professional Services Contract (504 only) with the SBA Lender who is acting as a loan packager or
referral agent employed by the Applicant);
2. Financial statement preparation specifically for the loan application; and/or
3. Consulting, Broker, or Referral services paid by the Applicant, SBA Lender, or Third-Party Lender (504 only).
The following are not considered agents for the purposes of this agreement and are not required to complete this form:
1. Applicant’s a
ccountant or the preparation of financial statements required by the Applicant in the normal course of
business and not related to the loan application;
2. Any attorney in connection with the 7(a) or 504 loan closing;
3. A state-certified or state-licensed appraiser employed by the SBA Lender to appraise collateral;
4. An LSP performing services for the Lender under an SBA-reviewed LSP agreement (7(a) only) or an individual
performing services for the CDC under an SBA-approved professional services contract (504 only);
5. An individual employed by the SBA Lender to perform a business valuation in connection with the SBA loan;
6. An environmental professional employed by the SBA Lender to conduct an environmental assessment of the
collateral; and/or
7. A real estate agent who is receiving a commission for the sale of real estate.
Instructions for completing this form: The Agent must be identified, all services provided must be listed, and the party
paying the fee and/or compensation and amount paid must also be disclosed (and itemized, when required). The SBA Lender
must ensure that the Agent performing services is not debarred, suspended, proposed for debarment, declared ineligible, or
voluntarily excluded from participation in this transaction by any Federal department or Agency. (See www.sam.gov.) The
SBA does not allow contingency fees (fees paid only if the loan is approved) or charges for services which are not reasonably
necessary in connection with an application. A separate form is required for each Agent (including an SBA Lender when
the SBA Lender performs packaging services) that has or will receive compensation as part of the transaction. However, all
services provided by the same Agent in connection with the same loan application may be listed on a single form. When
an Agent provides services to an Applicant in connection with multiple applications, separate forms must be completed for
each application.
If the aggregate compensation for all fees charged by the same Agent exceeds $2,500, the compensation must be itemized
to include a detailed explanation of the actual services performed on an hourly rate or a percentage of the loan amount. The
Lender must include the supporting documentation submitted with this form. When an Agent provides services in
connection with multiple loan applications or multiple services in connection with the same application, the fees are
aggregated for establishing the $2,500 threshold.
All SBA Lenders must retain the original form 159 in the loan file. Additionally, a copy of the completed form signed by
all parties with supporting documentation must be submitted electronically to SBA’s Capital Access Financial System