Can a loan broker be paid by both me and the lender?
Short answer
Only for different services. Under SOP 50 10 8.1, Section A, Chapter 4, Para. D.2, an Agent may package your application for you and take a referral fee from the lender. No Agent may be paid by both for the same service.
SBA allows one split arrangement. An Agent may take a packaging fee from you and a referral fee from the lender. SOP 50 10 8.1, Section A, Chapter 4, Para. D.2 (about p. 72) allows this, citing 13 CFR § 103.4(g).
Conditions
- You and the lender must both know about both relationships (Para. D.1.d).
- In that arrangement, the Agent may not also take a referral fee from you or a packaging fee from the lender.
- A Referral Agent may be paid by you or by the lender, not both (Para. D.3).
- Form 159 says an Agent may not be paid by both parties for the same service.
Multiple services billed to you
An Agent working for you may do packaging and referral work and bill you for both. The total for all services must stay within the limits in Para. D.7.
Paperwork the lender assigns
If a lender hires an Agent to prepare the SBA application, closing or sale documents, the lender must pay. It cannot pass those charges to you or pay them from loan proceeds (Para. D.1.e).
Disclosure
Each Agent's compensation goes on SBA Form 159, signed by you, the Agent and the lender. A lender also may not share a Secondary Market premium with a non-employee referral source (13 CFR § 120.222).
Ask lending partners about your loan
Tell us the amount you need and what it is for. We refer you to lenders that may fund businesses like yours, and it costs you nothing.
Janover Capital LLC is not a lender and is not the SBA. The lender makes the credit decision. A lender or marketplace may pay us a referral fee if we connect you, at no cost to you. Advertiser disclosure.