SBA Form 159, Fee Disclosure and Compensation Agreement is a form used to identify a third party agent hired by a small business owner for assistance in completing a Small Business Administration (SBA) loan application. The form is used with 7(a) and 504 Loan Programs and must be filed if an individual lender paid a fee to an agent for any assistance in completing their SBA loan application.
Loan packagers, accountants, brokers, consultants, and lawyers typically count as agents. The SBA might decide that the agent charged too much for their services and require the agent to provide a partial or full refund of all paid fees.
The latest version of the form was released by the SBA on August 1, 2021, with all previous editions obsolete. An updated SBA Form 159 fillable version is available through the link below. The previously used SBA Form 159 (7a) is no longer hosted on the SBA website.
The SBA Form 159D (Fee Disclosure Form and Compensation Agreement for Agent Services in Connection With an SBA Disaster Assistance Loan) is a related form used to report using the services of an agent in connection with SBA Disaster Assistance loan applications.
SBA 504 loans provide commercial real estate financing for owner-occupied properties. These loans require a 10% down payment by the small business owner and have funding amounts ranging from $125,000 to $20 million. The 504 loan program is run through Certified Development Companies - or CDCs. The CDC may act as a referral agent to a third party lender. In this case, the CDC should disclose any fees received from that third party lender.
The SBA Form 1919 provides the Small Business Administration with information on the borrower. The SBA Form 912 is used to compile a personal history of the borrower to evaluate their trustworthiness. The SBA Form 413 is a personal financial statement used for evaluating the borrower's ability to repay the loan.
The form has to be filled out and submitted by SBA loan applicants that have hired an agent or accountant to help with applying for the loan. Each agent should be identified on a separate form. There are several categories of agents that do not need to be reported via the SBA 159: