SBA Form 159D "Fee Disclosure Form and Compensation Agreement for Agent Services in Connection With an SBA Disaster Assistance Loan"

What Is SBA Form 159D?

SBA Form 159D, Fee Disclosure Form and Compensation Agreement is a form used by business owners to indicate that they hired an agent for assistance with their Small Business Administration (SBA) disaster loan application

The latest version of the form was released by the SBA in July 2005 with all previous editions obsolete. An ​updated SBA Form 159D​ fillable version is available for download and digital filing below. The previously used ​SBA Form 159 (7a)​ is no longer hosted on the SBA website.

Disaster loans are provided to businesses of all sizes as well as to private non-profit organizations, renters, and homeowners. This type of loan is used for replacing or repairing real estate, personal property, machinery, and equipment, along with any inventory and business assets that were damaged or destroyed in a declared disaster. To qualify for the disaster loan, the applicant has to be in an affected area as stated by a disaster declaration.

SBA Form 159, Fee Disclosure and Compensation Agreement

The SBA Form 159 is a form closely related to the SBA 159D. The purpose of both forms are similar, however, the SBA Form 159 is used in connection with the 7(a) and 504 loan programs. Depending on the program, the form requires the signatures of the SBA Lender or the Certified Development Company representative for certification.

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SBA Form 159D Instructions

There are several types of disaster loans. Victims of a disaster can apply for home and personal property loans. Business owners can apply for Business Physical Disaster Loans. If the business has suffered an economic injury regardless of the physical damage, the owner may qualify for an Economic Injury Disaster Loan (EIDL). If a small business is unable to meet its operating expenses because an essential employee is a military reservist called to active duty, the business owner can apply for a Military Reservists Economic Injury Loan for assistance with the operating expenses.

This SBA 159D should be filed if the applicant has hired any professional for assistance with an SBA disaster loan application. However, if the business owner uses the services of an accountant or any other professional in the normal course of business and not related to the loan, the form is not required. Filling guidelines and additional information can be found below.

How to Fill Out SBA Form 159D?

  1. The first two lines of the form require the applicant's own name and the name of their business. The applicant's name should be written as it appears on the loan application. If they applied with their business name, the business name line should be left blank.
  2. Next, the form requires the type of service the agent provided to the applicant. If the provided service is not on the list, the applicant has to check "Other" and name the service.
  3. The line below the service type chart requires the total amount the applicant paid for the agent's services. If this sum exceeds 500$ or 2500$ depending on the type of loan, the agent must provide the following information: the type of service, their hourly rate and the number of billed hours. This should be provided on a separate sheet and attached to the form.
  4. The next block of the form requires the agent's certification. The agent has to provide their personal name, business name and business address along with their phone number before signing and dating the form.
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Download SBA Form 159D "Fee Disclosure Form and Compensation Agreement for Agent Services in Connection With an SBA Disaster Assistance Loan"

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OMB Control No: 3245-0201
Expiration Date: 10/31/2017
FEE DISCLOSURE FORM AND COMPENSATION AGREEMENT
For Agent Services In Connection With an SBA Disaster Assistance Loan
POLICIES AND REGULATIONS CONCERNING REPRESENTATIVES AND THEIR FEES
Purpose of this form: Section 13 of the Small Business Act requires that an SBA disaster 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”). SOP 50-30,
Appendix 14 defines how the reasonableness of fees may be determined. Each Agreement governs the
compensation charged for services rendered or to be rendered to the Applicant in any matter involving SBA
assistance. “Agent” includes a loan packager, accountant, attorney, consultant, engineer, architect, appraiser, or
any other party that receives compensation from representing an Applicant for an SBA disaster loan.
SBA does not require an Applicant to engage the services of any Agent to file an application or close a loan. No
fees or compensation will be reimbursed or paid by SBA to any Agent. If an Applicant chooses to employ an
Agent, the compensation an Agent charges to and that is paid by the Applicant must bear a necessary and
reasonable relationship to the services actually performed and must be comparable to those charged by other
Agents in the geographical area. Compensation cannot be contingent on loan approval. In addition,
compensation must not include any expenses which are deemed by SBA to be unreasonable for services actually
performed or expenses actually incurred. Compensation must not include charges prohibited in 13 CFR 103 or
SOP 50-30, Appendix 14. If the compensation is determined by SBA to be unreasonable, 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 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 or tax returns
required by the Applicant in the normal course of business and not related to the loan application; 2) Any
professional retained by Applicant for services required by the Applicant in the normal course of business and not
related to the application or loan closing. 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
the Applicant has paid (or will be paying) compensation to an Agent in excess of the following amounts:
$500 for a disaster home loan
$2500 for a disaster business loan
If the compensation exceeds these amounts, the Agent must provide an itemization and justification of the
services performed.
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.
PLEASE NOTE: The estimated burden for completion of this Form 159D 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. (3245-0201). PLEASE DO NOT SEND FORMS TO OMB.
SBA Form 159D (7-05) Ref SOP 50 30 Previous edition of SBA 159 obsolete
1
OMB Control No: 3245-0201
Expiration Date: 10/31/2017
FEE DISCLOSURE FORM AND COMPENSATION AGREEMENT
For Agent Services In Connection With an SBA Disaster Assistance Loan
POLICIES AND REGULATIONS CONCERNING REPRESENTATIVES AND THEIR FEES
Purpose of this form: Section 13 of the Small Business Act requires that an SBA disaster 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”). SOP 50-30,
Appendix 14 defines how the reasonableness of fees may be determined. Each Agreement governs the
compensation charged for services rendered or to be rendered to the Applicant in any matter involving SBA
assistance. “Agent” includes a loan packager, accountant, attorney, consultant, engineer, architect, appraiser, or
any other party that receives compensation from representing an Applicant for an SBA disaster loan.
SBA does not require an Applicant to engage the services of any Agent to file an application or close a loan. No
fees or compensation will be reimbursed or paid by SBA to any Agent. If an Applicant chooses to employ an
Agent, the compensation an Agent charges to and that is paid by the Applicant must bear a necessary and
reasonable relationship to the services actually performed and must be comparable to those charged by other
Agents in the geographical area. Compensation cannot be contingent on loan approval. In addition,
compensation must not include any expenses which are deemed by SBA to be unreasonable for services actually
performed or expenses actually incurred. Compensation must not include charges prohibited in 13 CFR 103 or
SOP 50-30, Appendix 14. If the compensation is determined by SBA to be unreasonable, 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 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 or tax returns
required by the Applicant in the normal course of business and not related to the loan application; 2) Any
professional retained by Applicant for services required by the Applicant in the normal course of business and not
related to the application or loan closing. 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
the Applicant has paid (or will be paying) compensation to an Agent in excess of the following amounts:
$500 for a disaster home loan
$2500 for a disaster business loan
If the compensation exceeds these amounts, the Agent must provide an itemization and justification of the
services performed.
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.
PLEASE NOTE: The estimated burden for completion of this Form 159D 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. (3245-0201). PLEASE DO NOT SEND FORMS TO OMB.
SBA Form 159D (7-05) Ref SOP 50 30 Previous edition of SBA 159 obsolete
1
FEE DISCLOSURE FORM AND COMPENSATION AGREEMENT
For Agent Services In Connection With an SBA Disaster Assistance Loan
Loan applicant name:
Business Name (if different from Loan Applicant):
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 services Agent provided to applicant:
□ Loan packaging
□ Financial statements or
□ Legal services
□ Other (describe):
tax returns prepared
performed specifically
specifically for the
for loan closing
application
$________________________
Total compensation charged to applicant:
If the compensation exceeds $500 for a disaster home loan or $2500 for a disaster business loan, the Agent must attach
a separate schedule itemizing 1) services performed, and 2) the hourly rate and the number of hours billed for that
service.
By ______________________________________
__________
Agent Name and Signature:
(Signature of agent)
(Date)
_____________________________________________
____________________
(Name of agent – please print)
(Phone number of Agent)
____________________________________________________________________
(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
False certifications can result in criminal prosecution under 18 U.S.C. § 1001 and other penalties
the Applicant.
provided under law.
_______________________________________
By:________________________________________
_____________
(Applicant’s name)
(Signature of authorized representative, if applicable)
(Date)
______________________________________
___________________________________________
(Applicant’s name -- please print)
(Name of authorized representative – please print)
SBA Form 159D (7-05) Ref SOP 50 30 Previous edition of SBA 159 obsolete
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