The SBA 159 Series consists of two documents in total: SBA Form 159, Fee Disclosure and Compensation Agreement, and SBA Form 159D, Fee Disclosure Form and Compensation Agreement.
The main purpose of the forms is to report a business owner who used an agent to help complete an SBA application and to disclose that information to the government. Both forms need to be completed for each agent hired. The SBA 159 is used with SBA 7(a) and 504 Loan programs. The SBA 159D is used to report agent services connected with the SBA Disaster Assistance Loan application.
The previously used SBA Form 159 (7a) is no longer hosted on the SBA website. The SBA 159 (7a) was used by SBA loan applicants to report the names of agents engaged for the purpose of expediting the loan application and the fees paid to these agents under Section 13 of the Small Business Act (15 U.S.C. § 642).
The 7(a) and 504 loans are two popular programs that can assist small businesses owners in growing their businesses. Each loan has its own purpose and is designed for different business needs.
An SBA 504 loan is used to buy or improve a building, finance ground-up construction or purchase heavy equipment. These loans require only a ten percent down payment by the small business owner with funding amounts ranging from $125,000 to $20 million. The SBA 7a loans can be used to buy a business, refinance an existing business debt or obtain working capital. The minimum and maximum loan amounts are $50,000 and $5 million.
The SBA Form 159 is used with SBA 504 and 7a loan programs to prove that the individual hired an agent who helped to apply for these loans faster.
The Small Business Administration provides low-interest disaster loans to businesses, private non-profits, and homeowners in declared disaster areas. These disaster loans can be used to repair damaged or destroyed real estate, personal equipment or property, and business assets.
The SBA Form 159D is used to disclose all agent services connected with an SBA Disaster Assistance Loans.